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Altria (MO) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Altria (MO) closed at $47.90, marking a -0.37% move from the previous day. This move lagged the S&P 500's daily loss of 0.2%.

Prior to today's trading, shares of the owner of Philip Morris USA, the nation's largest cigarette maker had lost 4.24% over the past month. This has lagged the Consumer Staples sector's gain of 1.12% and the S&P 500's gain of 2.11% in that time.

Investors will be hoping for strength from MO as it approaches its next earnings release, which is expected to be July 29, 2021. On that day, MO is projected to report earnings of $1.17 per share, which would represent year-over-year growth of 7.34%. Meanwhile, our latest consensus estimate is calling for revenue of $5.4 billion, up 6.58% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.57 per share and revenue of $21.4 billion, which would represent changes of +4.82% and +2.67%, respectively, from the prior year.

Any recent changes to analyst estimates for MO should also be noted by investors. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 0.32% lower within the past month. MO is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that MO has a Forward P/E ratio of 10.51 right now. This represents a discount compared to its industry's average Forward P/E of 11.67.

We can also see that MO currently has a PEG ratio of 2.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MO's industry had an average PEG ratio of 2.06 as of yesterday's close.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 215, which puts it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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