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

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Vector Group (VGR - Free Report) closed at $13.55 in the latest trading session, marking a +0.07% move from the prior day. The stock lagged the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.67%.

Coming into today, shares of the discount cigarette maker had gained 1.42% in the past month. In that same time, the Consumer Staples sector gained 1%, while the S&P 500 gained 3.24%.

Investors will be hoping for strength from VGR as it approaches its next earnings release. In that report, analysts expect VGR to post earnings of $0.06 per share. This would mark a year-over-year decline of 71.43%. Our most recent consensus estimate is calling for quarterly revenue of $451.60 million, up 1.27% from the year-ago period.

It is also important to note the recent changes to analyst estimates for VGR. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. VGR currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, VGR is currently trading at a Forward P/E ratio of 25.07. Its industry sports an average Forward P/E of 10.86, so we one might conclude that VGR is trading at a premium comparatively.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 53, putting it in the top 21% 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.

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


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