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Altria (MO) Gains But Lags Market: What You Should Know

·3 min read

In the latest trading session, Altria (MO) closed at $45.57, marking a +0.93% move from the previous day. This change lagged the S&P 500's 1.53% gain on the day. Elsewhere, the Dow gained 1.19%, while the tech-heavy Nasdaq added 0.14%.

Coming into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had gained 0.04% in the past month. In that same time, the Consumer Staples sector lost 2.59%, while the S&P 500 lost 3.1%.

Wall Street will be looking for positivity from Altria as it approaches its next earnings report date. This is expected to be October 27, 2022. The company is expected to report EPS of $1.31, up 7.38% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $5.65 billion, up 2.13% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.85 per share and revenue of $20.85 billion. These totals would mark changes of +5.21% and -1.22%, respectively, from 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 has moved 0.15% lower. Altria is currently a Zacks Rank #3 (Hold).

In terms of valuation, Altria is currently trading at a Forward P/E ratio of 9.31. For comparison, its industry has an average Forward P/E of 9.22, which means Altria is trading at a premium to the group.

Meanwhile, MO's PEG ratio is currently 1.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. MO's industry had an average PEG ratio of 1.13 as of yesterday's close.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 26% 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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