It's not for everyone, but Altria stock offers double-digit investment returns today. Next-generation products are gaining market share.
Altria and AT&T have both been on a tear during the first six months of 2024. Meanwhile, the S&P 500 has crossed over into premium valuation territory, buoyed by Nvidia's incredible run.
Altria (MO) is benefiting from its focus on expanding smoke-free alternatives and strong pricing power amid low cigarette volumes.
Altria Group stock has lagged the market in recent years. However, several factors point to a bright future.
Altria stock has lagged the market in recent years. Yet shares are undeniably cheap, sporting an 8.6% dividend yield.
The FDA recently authorized the sale of four menthol-flavored NJOY products from Altria. NJOY could help the company return to revenue growth.
Altria Group's cigarette volumes are declining, but price increases are helping to maintain profits. The company has plenty of room to maintain or grow its dividend payments.
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.
Tobacco giant Altria said on Wednesday it had submitted Premarket Tobacco Product Applications (PMTAs) to the U.S. Food and Drug Administration for its on! Plus oral nicotine pouch products.
Altria Group is facing several challenges which are reflected in its rock-bottom valuation, but it has some core strengths which make the stock a Buy. The biggest issue is the secular decline in shipment volume of its smokeable products, which declined by a staggering 10 percentage points YoY in the recent quarter. However, the company is making up for these lost volumes with price increases, and the worst-case scenario for volume decline is also not too bad for the long-term EPS trajectory.
Altria (MO) concluded the recent trading session at $46.42, signifying a -0.06% move from its prior day's close.
Cigarette volumes keep declining, which is especially concerning given MO's recent inability to offset the negative volume effect with pricing power. The Company tries navigating the market with alternative product categories, and there's some positive news regarding that. However, the alternative product segments also face some headwinds (NJOY), or MO is yet to launch its first products (heated tobacco sticks).