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Altria (MO) closed the most recent trading day at $55.85, moving +1.4% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.59%. On the other hand, the Dow registered a gain of 1.39%, and the technology-centric Nasdaq increased by 1.63%.
The the stock of owner of Philip Morris USA, the nation's largest cigarette maker has risen by 6.87% in the past month, leading the Consumer Staples sector's gain of 3.7% and the S&P 500's loss of 2.42%.
Analysts and investors alike will be keeping a close eye on the performance of Altria in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.18, signifying a 2.61% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.66 billion, down 1.11% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.32 per share and a revenue of $20.48 billion, signifying shifts of +3.91% and +0.18%, respectively, from the last year.
Any recent changes to analyst estimates for Altria should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.52% lower. Altria presently features a Zacks Rank of #3 (Hold).
Investors should also note Altria's current valuation metrics, including its Forward P/E ratio of 10.36. This expresses no noticeable deviation compared to the average Forward P/E of 10.36 of its industry.
We can additionally observe that MO currently boasts a PEG ratio of 2.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Tobacco stocks are, on average, holding a PEG ratio of 2.78 based on yesterday's closing prices.
The Tobacco industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 86, positioning it in the top 35% of all 250+ industries.