Altria (MO) closed at $50.41 in the latest trading session, marking a +0.01% move from the prior day. This change outpaced the S&P 500's 0% on the day. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Coming into today, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had gained 1.31% in the past month. In that same time, the Consumer Staples sector gained 3.21%, while the S&P 500 gained 3.37%.
MO will be looking to display strength as it nears its next earnings release. In that report, analysts expect MO to post earnings of $1.01 per share. This would mark year-over-year growth of 6.32%. Meanwhile, our latest consensus estimate is calling for revenue of $4.85 billion, up 1.36% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.21 per share and revenue of $19.87 billion, which would represent changes of +5.51% and +1.22%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MO. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. Within the past 30 days, our consensus EPS projection remained stagnant. MO is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, MO is currently trading at a Forward P/E ratio of 11.99. This valuation marks a discount compared to its industry's average Forward P/E of 12.57.
We can also see that MO currently has a PEG ratio of 1.87. 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. The Tobacco was holding an average PEG ratio of 1.87 at yesterday's closing price.
The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 40% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Altria Group, Inc. (MO) : Free Stock Analysis Report
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