Why the Market Dipped But Anheuser-Busch Inbev (BUD) Gained Today
Anheuser-Busch Inbev (BUD) closed the most recent trading day at $62.08, moving +0.75% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.65%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq lost 1.16%.
Shares of the brewer witnessed a loss of 6.08% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 0.16% and the S&P 500's gain of 3.4%.
The investment community will be closely monitoring the performance of Anheuser-Busch Inbev in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.73, reflecting a 12.31% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $14.47 billion, up 1.84% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.52 per share and a revenue of $62.81 billion, indicating changes of +15.41% and +5.78%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Anheuser-Busch Inbev. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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 0.24% lower. Right now, Anheuser-Busch Inbev possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Anheuser-Busch Inbev is currently exchanging hands at a Forward P/E ratio of 17.49. This signifies no noticeable deviation in comparison to the average Forward P/E of 17.49 for its industry.
It's also important to note that BUD currently trades at a PEG ratio of 1.86. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Beverages - Alcohol industry stood at 2.05 at the close of the market yesterday.
The Beverages - Alcohol industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 215, placing it within the bottom 15% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
