The stock price of Altria (NYSE: MO) has risen around 15% in a month, primarily due to a better than anticipated quarterly performance driven by growth in its oral tobacco products. Looking at a slightly longer period, Altria has seen its stock rise nearly 50% from levels of $38 in early 2022 to $56 now.
Market volatility post-election and Fed Chair Powell's remarks led to declines in major indices and specific stocks like Pfizer and Coca-Cola. Diversification in my Dividend Harvesting Portfolio mitigated losses, maintaining a 25.53% return on invested capital despite market retracements. Weekly dividend income is growing, with a projected annualized dividend income of $1,855.76, showcasing the power of reinvestment and compounding.
Zacks.com users have recently been watching Altria (MO) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
I maintain a 'hold' rating for Altria Group due to its declining market share and the ongoing reduction in smoking rates. Despite attractive valuation and growth in segments like NJOY and on!, overall market share and cigarette volume continue to decline. Revenue growth is driven by higher pricing, but this isn't enough to offset the weaknesses in the company's core markets.
3 Reasons to Buy Altria Stock Like There's No Tomorrow
The recent surge across the markets, led by sectors like tech, energy, financials, and industrials, demonstrates that volatility surrounding election results can often drive attention away from more conservative, income-focused investments.
Philip Morris, Altria and British American Tobacco are included in this Analyst Blog.
During Q3 earnings, Altria showed strong price appreciation thanks to continued growth in NJOY and on!. Smokeable products continued to see lower volumes due to consumers becoming more health conscious, which will continue to be a risk for the company going forward. Altria was able to offset this with accelerated buybacks, significantly higher than the previous year's quarter.
Altria's stock is up by more than 30% over the past year, with a recent, and sizable, post-earnings jump. Is it worth this price?
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It's time to reassess the stock after Altria's surge this year.
The company was the subject of a bullish research update on the back of a convincing quarterly earnings beat.