Altria Group, Inc.'s 2024 Q3 once again highlights its core strengths. Non-traditional segments beginning to show early signs of promise. MO stock still appears undervalued, with a multiple of 10 and a yield of 8%.
Altria (MO) came out with quarterly earnings of $1.38 per share, beating the Zacks Consensus Estimate of $1.36 per share. This compares to earnings of $1.28 per share a year ago.
Altria Group beat market expectations for third-quarter revenue and profit on Thursday, as robust demand for its nicotine pouches and e-cigarettes helped soften the hit to its cigarettes category.
Altria has a lofty 8.2% yield, but that yield comes with material risks. You shouldn't buy it unless you can handle significant uncertainty.
Altria struggles with challenges in the Smokeable Products unit, driven by economic pressures on consumers and the rise of illegal e-vapor alternatives.
While Altria's share price hasn't particularly moved in recent months, there have been two crucial developments for it. One, the company's dividend increase has raised the forward yield to 8.2%, which makes it second only to British American Tobacco among the big five tobacco stocks. Two, a patent infringement claim by JUUL against NJOY has gone in JUUL's favor. While Altria continues to fight it out, there's now a question mark on the brand's future.
Altria faces challenges from macroeconomic pressures and a surge in illegal e-vapor products, though smoke-free offerings provide some support.
Altria offers a compelling investment with a low P/E ratio and an 8.2% dividend yield despite facing volume declines and regulatory risks. The US market remains highly profitable for Altria, but the lack of diversification and regulatory threats pose significant risks. Vaping and other alternatives are accelerating cigarette volume declines in the US, but Altria's pricing power and buybacks support profitability.
As 2025 fast approaches, one prevailing factor is economic uncertainty, and for income-seeking investors, the stock market offers several opportunities.
In the most recent trading session, Altria (MO) closed at $49.94, indicating a +0.28% shift from the previous trading day.
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.
Oftentimes, class-action settlements pay less than $10 per person — but MarketWatch spoke with former Juul users who received hundreds of dollars