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

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In the latest trading session, Altria (MO) closed at $51.68, marking a -0.67% move from the previous day. This move lagged the S&P 500's daily gain of 1.23%. Meanwhile, the Dow gained 0.97%, and the Nasdaq, a tech-heavy index, added 0.44%.

Prior to today's trading, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had gained 1.44% over the past month. This has outpaced the Consumer Staples sector's loss of 0.92% and lagged the S&P 500's gain of 4.69% in that time.

Investors will be hoping for strength from Altria as it approaches its next earnings release, which 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 $4.8 billion, down 1.6% from the prior-year quarter.

MO's full-year Zacks Consensus Estimates are calling for earnings of $4.84 per share and revenue of $20.91 billion. These results would represent year-over-year changes of +4.99% and -0.95%, respectively.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 0.21% lower within the past month. Altria is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Altria currently has a Forward P/E ratio of 10.76. For comparison, its industry has an average Forward P/E of 9.74, which means Altria is trading at a premium to the group.

Also, we should mention that MO has a PEG ratio of 2.69. 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 2.56 as of yesterday's close.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 237, putting it in the bottom 7% 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.

To follow MO in the coming trading sessions, be sure to utilize Zacks.com.


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