Altria Group, Inc. (MO), the owner of Philip Morris USA, finished the recent trading session with a slight increase, closing at $51.19, reflecting a +0.33% gain from the previous day’s close. This performance edged out the S&P 500’s daily gain of 0.25%. The Dow Jones Industrial Average also added 0.2%, while the tech-heavy Nasdaq rose 0.56%.
Despite the positive daily movement, Altria’s stock has experienced a decline of 3.21% over the past month, lagging behind the Consumer Staples sector’s gain of 1.17% and the S&P 500’s gain of 1.65%. This trend underscores the importance of the upcoming earnings release, which is anticipated to shed light on the company’s future trajectory.
Altria is scheduled to report its earnings on October 31, 2024. Market analysts are projecting an EPS of $1.36, representing a 6.25% increase from the previous year’s quarter. Moreover, the consensus estimate anticipates revenue of $5.35 billion, indicating a 1.4% upward movement from the same quarter last year. Looking ahead to the entire fiscal year, analysts expect earnings of $5.11 per share and revenue of $20.38 billion, representing changes of +3.23% and -0.59%, respectively, compared to the previous year.
Investors should pay close attention to any recent revisions in analyst estimates for Altria. These adjustments often reflect the latest short-term business trends, which can be volatile. Upward revisions in estimates generally indicate analysts’ optimism about the company’s performance and its ability to generate profits. Research suggests that these estimate changes are directly correlated with the stock’s future performance.
The Zacks Rank, a proprietary model that integrates these estimate changes, provides a functional rating system for stocks. The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell), with a proven track record of outperformance. Since 1988, stocks with a Zacks Rank of #1 have returned an average of +25% annually. Over the past 30 days, the consensus EPS projection for Altria has moved 0.1% higher. Currently, Altria holds a Zacks Rank of #2 (Buy).
From a valuation standpoint, Altria is currently trading at a Forward P/E ratio of 9.99. This valuation is essentially in line with the industry’s average Forward P/E of 9.99. Altria also has a PEG ratio of 2.95. Similar to the P/E ratio, the PEG ratio takes into account the company’s projected earnings growth. The Tobacco industry had an average PEG ratio of 2.18 at the close of trading yesterday.
The Tobacco industry falls under the Consumer Staples sector. This group holds a Zacks Industry Rank of 17, placing it within the top 7% of all 250+ industries. The Zacks Industry Rank evaluates the strength of individual industry groups by calculating the average Zacks Rank of the constituent stocks. Research indicates that the top 50% ranked industries outperform the bottom half by a factor of 2 to 1. This data suggests that the Tobacco industry’s strong ranking could provide Altria with a favorable environment for growth.
