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Vector Group (VGR) Gains But Lags Market: What You Should Know

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In the latest trading session, Vector Group (VGR - Free Report) closed at $12.21, marking a +0.16% move from the previous day. This move lagged the S&P 500's daily gain of 0.41%. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 0.7%.

Coming into today, shares of the discount cigarette maker had gained 3.83% in the past month. In that same time, the Consumer Staples sector lost 0.81%, while the S&P 500 gained 2.04%.

Wall Street will be looking for positivity from VGR as it approaches its next earnings report date. In that report, analysts expect VGR to post earnings of $0.13 per share. This would mark no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $526.50 million, up 2.46% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.54 per share and revenue of $1.95 billion, which would represent changes of -1.82% and +4.2%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for VGR. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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 remained stagnant within the past month. VGR currently has a Zacks Rank of #2 (Buy).

Investors should also note VGR's current valuation metrics, including its Forward P/E ratio of 22.45. Its industry sports an average Forward P/E of 11.4, so we one might conclude that VGR is trading at a premium comparatively.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% 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.

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