Back to top

Image: Bigstock

Altria (MO) Increases Despite Market Slip: Here's What You Need to Know

Read MoreHide Full Article

Altria (MO - Free Report) closed the most recent trading day at $46.45, moving +1.55% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.31%. On the other hand, the Dow registered a gain of 0.67%, and the technology-centric Nasdaq decreased by 1.09%.

The the stock of owner of Philip Morris USA, the nation's largest cigarette maker has risen by 0.55% in the past month, leading the Consumer Staples sector's loss of 3.03% and undershooting the S&P 500's gain of 2.73%.

Market participants will be closely following the financial results of Altria in its upcoming release. The company is predicted to post an EPS of $1.35, indicating a 3.05% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.39 billion, down 0.94% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $5.11 per share and revenue of $20.45 billion, which would represent changes of +3.23% and -0.26%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Altria. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.07% rise in the Zacks Consensus EPS estimate. Altria is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Altria's current valuation metrics, including its Forward P/E ratio of 8.95. For comparison, its industry has an average Forward P/E of 8.95, which means Altria is trading at no noticeable deviation to the group.

It's also important to note that MO currently trades at a PEG ratio of 2.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Tobacco stocks are, on average, holding a PEG ratio of 1.84 based on yesterday's closing prices.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 56, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Altria Group, Inc. (MO) - free report >>

Published in