Why the Market Dipped But Anheuser-Busch Inbev (BUD) Gained Today
The most recent trading session ended with Anheuser-Busch Inbev (BUD) standing at $64.78, reflecting a +0.42% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily loss of 0.1%. On the other hand, the Dow registered a gain of 0.33%, and the technology-centric Nasdaq decreased by 0.3%.
Shares of the brewer have depreciated by 0.86% over the course of the past month, underperforming the Consumer Staples sector's gain of 0.2% and the S&P 500's gain of 5.78%.
The investment community will be paying close attention to the earnings performance of Anheuser-Busch Inbev in its upcoming release. The company is slated to reveal its earnings on February 29, 2024. On that day, Anheuser-Busch Inbev is projected to report earnings of $0.76 per share, which would represent a year-over-year decline of 22.45%. Meanwhile, our latest consensus estimate is calling for revenue of $15.34 billion, up 4.6% from the prior-year quarter.
Any recent changes to analyst estimates for Anheuser-Busch Inbev should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.4% lower. As of now, Anheuser-Busch Inbev holds a Zacks Rank of #3 (Hold).
With respect to valuation, Anheuser-Busch Inbev is currently being traded at a Forward P/E ratio of 18.27. This valuation marks a premium compared to its industry's average Forward P/E of 16.8.
We can additionally observe that BUD currently boasts a PEG ratio of 1.95. 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 Beverages - Alcohol industry had an average PEG ratio of 1.95 as trading concluded yesterday.
The Beverages - Alcohol industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
