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Vector Group (VGR) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research

Vector Group (VGR) closed at $11.13 in the latest trading session, marking a -1.07% move from the prior day. This change lagged the S&P 500's daily gain of 1.09%. Elsewhere, the Dow gained 1.21%, while the tech-heavy Nasdaq added 1.34%.

Prior to today's trading, shares of the discount cigarette maker had lost 12.63% over the past month. This has lagged the Consumer Staples sector's loss of 0.83% and the S&P 500's loss of 1.17% in that time.

VGR will be looking to display strength as it nears its next earnings release. In that report, analysts expect VGR to post earnings of $0.13 per share. This would mark no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $526.50 million, up 2.46% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.54 per share and revenue of $1.95 billion. These totals would mark changes of -1.82% and +4.2%, respectively, from last year.

Any recent changes to analyst estimates for VGR should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. VGR currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that VGR has a Forward P/E ratio of 20.72 right now. For comparison, its industry has an average Forward P/E of 10.87, which means VGR is trading at a premium to the group.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 26% 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.

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

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