MO's turnaround from the Juul fiasco has been highly successful indeed, as observed in the growing NJOY sales across devices/ consumables and expanding retail share. PM ZYN's ongoing shortage has also been a boon, as observed in on!'s high double digit volume growth and oral tobacco market share in the US. MO's prospects are also significantly aided by the promising Vision and 2028 Enterprise Goals, funded through $600M in cumulative cost savings from the Optimize & Accelerate initiative.
This article explains why I like MO better than PM, following the so-called rule of 10xEBT (earnings before taxes). MO features a lower EBT multiple (only about 8.1x of its FWD EBT) than PM (about 15x). Thus, under Buffett's 10x Pretax Rule, MO offers a much more compelling pretax earnings yield (over 12% vs. PM's 6.4%).
Altria (MO -1.44%) is one of the stock market's more divisive titles. As a major producer of cigarettes, its continued existence is controversial in a world that has grown more health-conscious and aware of tobacco's hazards.
Altria (MO -0.66%) as a stock, is not all that attractive for investors. Over the past five years, the stock's price is up roughly 10% -- cumulatively.
Altria's stock price is up by 14% in the past five weeks, driven by a Q3 earnings surprise with adjusted EPS of USD1.38, exceeding estimates. There's more supporting the stock's increase, too. NJOY vapes' market share is rising and there could be incoming policy support to clamp down on the illegal vape market too. However, Altria's P/E ratio isn't competitive anymore, though a still strong forward dividend yield makes a case for it.
I'll never get tired of praising dividend stocks as the market's unsung heroes. While they aren't as sexy as high-flying growth stocks, they can be just as effective at making investors money.
Altria Group (MO 0.72%) has emerged as a surprising stock market winner in 2024, propelled by an impressive earnings rebound. At the time of this writing, its shares had surged by 41% this year to their highest level since 2019.
Every single company eventually goes through a difficult period; that's just how the business world works. The rough patches, meanwhile, can provide long-term investors with good buying opportunities.
There are plenty of reasons why many investors may choose to load up on dividend stocks right now.
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.
Altria Group, Inc. has delivered over 50% returns this year, driven by strong adoption of non-smokable products and favorable valuation expansion. The Trump administration's policies, including cracking down on illegal imports and pro-working class measures, are expected to benefit Altria. Altria's valuation remains compelling with a target price of $98.47, suggesting a 40% upside, supported by a simple DCF model.
Altria Group (MO) has surged over 40% in 2024, with potential to exceed $60 by year-end and $70 in 2025. Lower interest rates and Republican control of legislative branches are bullish for MO, reducing operating expenses and potential tax savings. MO's strong Q3 performance and robust market share in tobacco and NJOY products support its undervaluation and dividend growth prospects.