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Vector Group (VGR) Dips More Than Broader Markets: What You Should Know

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Vector Group (VGR - Free Report) closed at $12.20 in the latest trading session, marking a -0.97% move from the prior day. This move lagged the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.14%.

Prior to today's trading, shares of the discount cigarette maker had gained 11.49% over the past month. This has outpaced the Consumer Staples sector's loss of 1.69% and the S&P 500's gain of 2.46% in that time.

Investors will be hoping for strength from VGR as it approaches its next earnings release, which is expected to be November 5, 2019. The company is expected to report EPS of $0.13, unchanged from the prior-year quarter. 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.

Investors should also note any recent changes to analyst estimates for VGR. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that VGR has a Forward P/E ratio of 22.69 right now. This represents a premium compared to its industry's average Forward P/E of 11.36.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 42% 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.

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


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