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Altria (MO) Suffers a Larger Drop Than the General Market: Key Insights

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Altria (MO - Free Report) ended the recent trading session at $68.97, demonstrating a -1.75% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.22%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 1.35%.

The stock of owner of Philip Morris USA, the nation's largest cigarette maker has fallen by 5.15% in the past month, lagging the Consumer Staples sector's gain of 1.54% and the S&P 500's gain of 1.56%.

The investment community will be paying close attention to the earnings performance of Altria in its upcoming release. The company is slated to reveal its earnings on July 30, 2026. The company is forecasted to report an EPS of $1.48, showcasing a 2.78% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.35 billion, up 1.06% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.68 per share and a revenue of $20.53 billion, indicating changes of +4.8% and +1.96%, respectively, from the former year.

Any recent changes to analyst estimates for Altria should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Altria holds a Zacks Rank of #2 (Buy).

In terms of valuation, Altria is presently being traded at a Forward P/E ratio of 12.35. This valuation marks a discount compared to its industry average Forward P/E of 12.77.

Also, we should mention that MO has a PEG ratio of 2.62. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Tobacco industry stood at 2.12 at the close of the market yesterday.

The Tobacco industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 193, positioning it in the bottom 21% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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