In the latest trading session, Altria (MO) closed at $42.91, marking a -0.3% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.64%. Elsewhere, the Dow lost 1.08%, while the tech-heavy Nasdaq lost 1.82%.
Heading into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had lost 0.19% over the past month, outpacing the Consumer Staples sector's loss of 1.32% and lagging the S&P 500's gain of 0.89% in that time.
Investors will be hoping for strength from Altria as it approaches its next earnings release, which is expected to be October 26, 2023. On that day, Altria is projected to report earnings of $1.30 per share, which would represent year-over-year growth of 1.56%. Our most recent consensus estimate is calling for quarterly revenue of $5.49 billion, up 1.43% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5 per share and revenue of $20.84 billion, which would represent changes of +3.31% and +0.72%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Altria. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.23% higher. Altria is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Altria currently has a Forward P/E ratio of 8.6. This valuation marks a discount compared to its industry's average Forward P/E of 9.1.
It is also worth noting that MO currently has a PEG ratio of 2.3. 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. The Tobacco was holding an average PEG ratio of 2.17 at yesterday's closing price.
The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% 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.
To follow MO in the coming trading sessions, be sure to utilize Zacks.com.
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