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Altria (MO) Gains As Market Dips: What You Should Know

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Altria (MO - Free Report) closed the most recent trading day at $42.05, moving +0.96% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.33%.

Heading into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had lost 5.02% over the past month, lagging the Consumer Staples sector's loss of 0.77% and the S&P 500's gain of 0.59% in that time.

Wall Street will be looking for positivity from MO as it approaches its next earnings report date. This is expected to be October 31, 2019. On that day, MO is projected to report earnings of $1.14 per share, which would represent year-over-year growth of 5.56%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.29 billion, unchanged from the year-ago period.

MO's full-year Zacks Consensus Estimates are calling for earnings of $4.19 per share and revenue of $19.71 billion. These results would represent year-over-year changes of +5.01% and +0.41%, respectively.

Any recent changes to analyst estimates for MO should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.76% higher within the past month. MO is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, MO is currently trading at a Forward P/E ratio of 9.95. This represents a discount compared to its industry's average Forward P/E of 11.17.

We can also see that MO currently has a PEG ratio of 1.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Tobacco was holding an average PEG ratio of 1.55 at yesterday's closing price.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 15% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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