Altria (MO) closed at $66.34 in the latest trading day, moving -1.19% from the previous day. This change lagged the S&P 500’s 0.08% loss on the day. Meanwhile, the Dow fell 0.61% and the tech-heavy Nasdaq rose 0.08%.
Prior to today’s trading, shares of Philip Morris USA Inc., the largest U.S. cigarette maker, had gained 4.25%, outpacing the Consumer Staples sector’s loss of 3.4% and the S&P 500’s loss of 2.16%.
Investors will be keenly watching Altria’s performance in its upcoming earnings disclosure. In that report, analysts expected Altria to post earnings of $1.25 per share. This would mark a year-over-year increase of 1.63%. Additionally, our most recent consensus forecast is projecting revenue of $4.56 billion, up 0.99% from the year-ago period.
For the full year, the Zacks Consensus Estimates are for earnings of $5.61 per share and revenue of $20.17 billion, which would represent improvements of +3.51% and +0.15%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Altria. These latest adjustments often reflect dynamic changes in short-term business models. Therefore, positive forecast revisions convey analyst confidence in the business’s performance and profit potential.
Empirical research shows that these forecast revisions are directly related to upcoming stock price performance. We developed the Zacks Rank to take advantage of this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable ratings model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has an impressive track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988, independently audited. The Zacks Consensus EPS estimate has moved 0.13% higher within the past month. Altria currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Altria currently has a Forward P/E ratio of 11.97. For comparison, the industry’s average Forward P/E ratio is 12.49, which means Altria is trading at a discount relative to the group.
Meanwhile, MO’s PEG ratio currently stands at 2.87. The PEG ratio is similar to the widely used P/E ratio, but this metric also takes into account the company’s expected earnings growth rate. As of yesterday’s close, the Tobacco industry had an average PEG ratio of 1.97.
The tobacco industry is part of the consumer staples industry. This industry currently has a Zacks Industry Rank of 204, which ranks in the bottom 17% of all industries with over 250 stocks.
