Altria gains ground in smoke-free with on! pouches, lifting market share and boosting awareness through bold marketing moves.
Altria's dominant U.S. market share, strong pricing power, and brand loyalty provide a robust moat despite declining cigarette volumes. The company boasts exceptional profitability, high free cash flow yield, and a 7% dividend, supported by decades of dividend growth and share buybacks. Valuation remains attractive, with Altria trading at a discount to peers and maintaining industry-leading margins and returns on capital.
MO's on! pouches drive oral tobacco growth, but NJOY setbacks test its smoke-free strategy and future revenue outlook.
As PM's smoke-free bets pay off, MO's low multiple and on! momentum may offer sharper value in 2025.
PM, MO and TPB are riding a wave of RRP innovation and pricing power as the tobacco industry pivots toward smoke-free growth.
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 likely to announce its 56th consecutive year of dividend growth in August. The tobacco company shared mixed results in Q1. Altria Group's credit rating was recently upgraded to BBB+ by S&P on a stable outlook.
MO trades at a steep discount to peers and shows bullish momentum, making it a potential value play in tobacco's shift to smoke-free.
MO's smoke-free push is under threat as illicit flavored e-vapor products dominate a growing U.S. nicotine market.
Key Points Altria (NYSE: MO) remains a superior dividend stock compared to Ford (NYSE: F), with stable cash flow and a reliable payout, while Ford's dividend sustainability is in doubt due to quality and execution risks.
MO's cigarette sales tumble amid inflation and rising e-vapor use, raising urgency for a faster smoke-free pivot.
This stock may not be part of the most exciting stories in the stock market today, both in terms of its business model and price action. While every investor is watching the developments in the artificial intelligence space as closely as ever, the so-called “smart money” is looking elsewhere, this time surrounding the consumer staples sector for its recent picks that could become potential winners.