Altria Group Inc ( NYSE:MO ) is the company behind Marlboro cigarettes and smokeless tobacco products.
Altria offers compelling value and safety, with a resilient business model and a well-covered, nearly 7% dividend yield. MO's Q4 showed stable fundamentals: modest EPS growth, pricing power offsetting volume declines, and continued progress in smoke-free products. Frequent share buybacks and disciplined leverage support dividend sustainability, while FDA approvals and acquisitions bolster MO's smoke-free transition.
Altria remains a great Buy, with the recent volatility already triggering the discounted valuations and the consequently rich dividend yields at ~6.8%. The smokeable segment faces a painful secular decline across volume erosion, deteriorating price elasticity, and changing consumer demand for discount offerings. Otherwise, MO continues to report robust cash flow and a healthy balance sheet, with the recent US FDA marketing approval for nicotine pouches underpinning future growth opportunities.
Altria Group regains Buy rating after the release of its Q4 2025 and full year 2025 results, owing crucially to clarity on future earnings and dividends. The company expects continued growth in adjusted diluted EPS and in dividends until 2028, which is important considering its lucrative dividends. Hope of progress on its tobacco free products is encouraging too, even as its forward P/E is less compelling.
MO relies on aggressive pricing to counter soft cigarette volumes, helping protect smokeable profits and margins amid persistent industry headwinds.
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.
MO is now rated Hold due to limited upside at current valuation and slow smoke-free transition progress. MO's smokeable segment, still 87.5% of revenue, continues to decline, with Marlboro's share dropping below 40% in Q4 2025. Smoke-free initiatives show incremental progress but remain financially immaterial; oral tobacco grew less than 1% year-over-year.
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Altria Group, Inc. NYSE: MO stock is off to a strong start in 2026, up more than 7.3%. However, MO stock was down nearly 3% in midday trading on Jan. 29, as the company's earnings were flat year-over-year (YOY).
MO and PM ramp up smoke-free growth, using pricing power and innovation to counter falling cigarette demand and reshape tobacco's future.
Altria stock (NYSE: MO) dropped 5% after a Q4 earnings miss. Although revenue (excluding excise taxes) surpassed expectations at $5.08 billion compared to the $5.02 billion estimate, the adjusted EPS of $1.30 fell short of the $1.32 consensus.