Why the Market Dipped But Anheuser-Busch Inbev (BUD) Gained Today
The latest trading session saw Anheuser-Busch Inbev (BUD) ending at $62.85, denoting a +0.98% adjustment from its last day's close. This change outpaced the S&P 500's 0.6% loss on the day. Meanwhile, the Dow experienced a drop of 0.17%, and the technology-dominated Nasdaq saw a decrease of 0.92%.
The the stock of brewer has fallen by 1.14% in the past month, lagging the Consumer Staples sector's gain of 1.81% and the S&P 500's gain of 3.56%.
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. The company's upcoming EPS is projected at $0.76, signifying a 22.45% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $15.34 billion, reflecting a 4.6% rise from the equivalent quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for Anheuser-Busch Inbev. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.47% downward. Right now, Anheuser-Busch Inbev possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Anheuser-Busch Inbev has a Forward P/E ratio of 17.62 right now. This expresses a premium compared to the average Forward P/E of 16.89 of its industry.
It is also worth noting that BUD currently has a PEG ratio of 1.88. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Beverages - Alcohol stocks are, on average, holding a PEG ratio of 2.03 based on yesterday's closing prices.
The Beverages - Alcohol industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 33% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
