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

In the latest trading session, Altria (MO) closed at $41.72, marking a -1.25% move from the previous day. This move lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq added 0.48%.

Prior to today's trading, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had lost 21.16% over the past month. This has lagged the Consumer Staples sector's loss of 0.69% and the S&P 500's loss of 6.79% in that time.

Altria will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2022. The company is expected to report EPS of $1.24, up 0.81% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.4 billion, down 3.88% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.84 per share and revenue of $20.83 billion. These totals would mark changes of +4.99% and -1.32%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Altria. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.27% lower within the past month. Altria is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Altria is currently trading at a Forward P/E ratio of 8.74. Its industry sports an average Forward P/E of 9.32, so we one might conclude that Altria is trading at a discount comparatively.

Investors should also note that MO has a PEG ratio of 2.18 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Tobacco was holding an average PEG ratio of 1.56 at yesterday's closing price.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% 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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