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Altria (MO) Gains As Market Dips: What You Should Know

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Altria (MO) closed at $53.49 in the latest trading session, marking a +0.6% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.53%, and the Nasdaq, a tech-heavy index, lost 0.48%.

Heading into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had gained 5.45% over the past month, outpacing the Consumer Staples sector's loss of 1.98% and the S&P 500's loss of 2.43% in that time.

Wall Street will be looking for positivity from Altria as it approaches its next earnings report date. This is expected to be April 28, 2022. The company is expected to report EPS of $1.10, up 2.8% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.82 billion, down 1.17% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.85 per share and revenue of $21.01 billion. These totals would mark changes of +5.21% and -0.5%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Altria. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Altria is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Altria currently has a Forward P/E ratio of 10.97. This valuation marks a premium compared to its industry's average Forward P/E of 9.51.

We can also see that MO currently has a PEG ratio of 2.74. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Tobacco stocks are, on average, holding a PEG ratio of 2.31 based on yesterday's closing prices.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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