In the most recent trading session, Altria (MO) closed at $58.56, indicating a -0.44% shift from the previous trading day.
MO's low valuation reflects structural challenges, making it a risky bet amid declining volumes, regulatory pressure, and rising illicit competition.
Philip Morris International hiked its annual profit forecast on Wednesday, delivering early on investor hopes for outlook raises throughout 2025, thanks to the performance of newer products, including the nicotine pouch brand ZYN.
Shares of Altria Group Inc. ( NYSE: MO ) have outperformed the broad market over the past month by mustering a gain of 1.60% while the S&P 500 has lost -8.60% over the same period.
Altria (MO) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
In a turbulent market environment, Altria Group remains a reliable income pick and personal ATM in my portfolio. The tobacco giant has impressive distribution might that I believe it can use to expand into non-nicotine adjacencies. Altria Group's debt-to-EBITDA ratio is near its target and the company's annual debt maturities are well-staggered.
Philip Morris, Altria and Turning Point Brands have been highlighted in this Industry Outlook article.
Altria's dividend is sustainable with a payout ratio aligned with management's 80% target and consistent free cash flow growth. Despite declining smoking rates, Altria's pricing power and high return on invested capital drive earnings and gross profit growth. Management is pivoting towards a smoke-free future, investing in smoke-free products to sustain long-term growth.
Tobacco companies like PM, MO and TPB are investing heavily in smoke-free products to align with health trends and regulatory shifts.
Altria Group Inc. (NYSE: MO) has a forward yield of 7.1%.
Recently, Zacks.com users have been paying close attention to Altria (MO). This makes it worthwhile to examine what the stock has in store.
Altria Group is a resilient pick for uncertain times, with strong domestic production facilities and addictive products that ensure steady demand. Despite a 10% fall in traditional cigarette sales in 2024, Altria's non-cyclical, defensive nature and ~50% EBITDA margin provide a safety cushion. Altria's stock has a low Beta, indicating less volatility compared to the S&P 500, making it a stable investment during market downturns.