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Is on! the Bright Spot in Altria's Oral Tobacco Portfolio?
ZACKS· 2025-07-22 16:50
Core Insights - Altria Group's on! nicotine pouch brand is experiencing significant growth, with shipments increasing by 18% to 39.3 million cans in Q1 2025, contrasting with declines in traditional brands [1][8] - The on! brand now holds an 8.8% share of the total oral tobacco market and a 17.9% share of the nicotine pouch segment, despite rising competition [2][8] - Helix, the manufacturer of on!, has successfully increased brand awareness to over 60% through its "It's On!" campaign, enhancing consumer loyalty [3][8] Market Performance - Philip Morris International's ZYN brand leads the nicotine pouch category, shipping over 200 million cans in Q1 2025, a 63% increase year over year, maintaining over 70% of category value [5] - Turning Point Brands reported a nearly tenfold increase in modern oral revenues to $22.3 million in Q1 2025, raising its full-year nicotine pouch sales forecast to $80-$95 million [6] Valuation and Earnings Estimates - Altria's shares have declined by 2.6% in the past month, while the industry saw a smaller decline of 0.8% [7] - The forward price-to-earnings ratio for Altria is 10.8X, lower than the industry's average of 15.21X [10] - Zacks Consensus Estimates indicate year-over-year earnings growth of 4.9% for 2025 and 3.1% for 2026 [11]
3 Reasons Why Altria's A Buy
Seeking Alpha· 2025-07-18 16:57
Tobacco stock Altria Group, Inc. (NYSE: MO ) has had an underwhelming 2025 so far at the stock markets compared with its peers. Even with its ~11% increase YTD, which is considerably ahead of the consumer staples sector, as seen from the 3.2% rise inManika is a macroeconomist with over 20 years of experience in industries including investment management, stock broking, investment banking. She also runs the profile Long Term Tips [LTT], which focuses on the generational opportunity in the green economy. Her ...
Why the Smartest Investors Are Buying Philip Morris International Stock and Not Altria
The Motley Fool· 2025-07-18 08:50
Core Insights - Altria has transitioned into a primarily tobacco-focused company, while Philip Morris International has a more diversified and stronger business model [1][4] Market Share and Brand Performance - Altria's flagship brand, Marlboro, holds a 41% market share in North America, contributing to an overall market share of approximately 45% when including smaller brands [3] - Marlboro has recently lost market share, indicating a decline in Altria's competitive position [5] Business Operations and Challenges - Altria's cigarette volume fell by 13.7% in Q1 2025, continuing a long-term downward trend, which is impacting its business significantly [5][6] - The company has faced substantial financial missteps, resulting in billions of dollars in write-downs, highlighting its struggles in adapting to market changes [6] Comparison with Philip Morris - Philip Morris has shown resilience, with cigarette volumes increasing in foreign markets during the same period, leading to a 0.4-percentage-point market share gain [7] - Philip Morris's non-cigarette operations are thriving, generating 42% of its revenue and 44% of its profits in Q1 2025, with strong performance in vapes and pouches [8] Investment Considerations - Investors in Altria are betting on the company's ability to pivot towards non-cigarette businesses, while Philip Morris is currently seen as the stronger investment option due to its successful execution and market performance [9]
FDA authorizes Juul's e-cigarettes for sale in US after 3-year ban
New York Post· 2025-07-17 16:35
Core Insights - The FDA has authorized the sale of Juul's e-cigarette device and refill cartridges in tobacco and menthol flavors, marking a significant regulatory approval after years of scrutiny [1][3][4] - This decision provides a potential recovery path for Juul, which faced bankruptcy risks following a federal ban in 2022 [1][2] - The approval is seen as part of a broader expectation that regulatory hurdles for new vaping products may be eased under the current administration [4] Regulatory Context - The FDA's 2022 ban on Juul's products was temporarily stayed after the company appealed the decision [2][8] - The FDA's rigorous evaluation of Juul's data led to the conclusion that marketing approval was appropriate for public health protection [3] - The agency has faced criticism for slow product authorizations and the proliferation of unauthorized products in the market [5]
FDA approves sales of Juul's e-cigarettes in the US
Proactiveinvestors NA· 2025-07-17 16:11
Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company has a team of experienced and qualified news journalists who produce independent content [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The news team delivers insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company utilizes automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]
Turning Point Brands (TPB) Soars 5.1%: Is Further Upside Left in the Stock?
ZACKS· 2025-07-16 10:26
Group 1 - Turning Point Brands (TPB) shares increased by 5.1% to close at $78.39, supported by higher trading volume compared to normal sessions, contrasting with a 1.4% loss over the past four weeks [1] - The growth in the modern oral segment, particularly from nicotine pouch sales and market penetration, is driving optimism for Turning Point Brands [2] - The company is projected to report quarterly earnings of $0.79 per share, reflecting an 11.2% decrease year-over-year, with expected revenues of $105.55 million, down 2.7% from the previous year [3] Group 2 - The consensus EPS estimate for Turning Point Brands has remained stable over the last 30 days, indicating that stock price increases may not sustain without earnings estimate revisions [4] - Turning Point Brands holds a Zacks Rank of 3 (Hold), while Altria (MO), another stock in the tobacco industry, has a Zacks Rank of 2 (Buy) and finished the last trading session at $58.48, up 0.6% [5][6]
Are Consumer Staples Stocks Lagging Altria Group (MO) This Year?
ZACKS· 2025-07-14 14:42
Group 1 - Altria is part of the Consumer Staples sector, which includes 178 individual stocks and has a Zacks Sector Rank of 14, indicating its relative strength among sectors [2] - Altria currently holds a Zacks Rank of 2 (Buy), with a 0.9% increase in the Zacks Consensus Estimate for its full-year earnings over the past 90 days, reflecting improving analyst sentiment [3] - Year-to-date, Altria has returned 10.5%, outperforming the average gain of 5% for Consumer Staples stocks [4] Group 2 - Altria belongs to the Tobacco industry, which consists of 7 individual stocks and is ranked 65 in the Zacks Industry Rank, with an average year-to-date gain of 39.3%, indicating that Altria is slightly underperforming its industry [5] - In comparison, Carlsberg AS, another stock in the Consumer Staples sector, has achieved a year-to-date return of 48.8% and has a Zacks Rank of 2 (Buy) [4][5] - The Beverages - Alcohol industry, where Carlsberg AS is categorized, has 15 stocks and is ranked 146, with a year-to-date increase of 2.1% [6]
Build Your Dividend Dream: 3 High-Yield Stocks to Buy Now
The Motley Fool· 2025-07-14 09:39
Group 1: Dividend Stocks Overview - The S&P 500 index currently has a low dividend yield of 1.2%, which is less attractive compared to U.S. Treasury bonds [1] - There are high-yield dividend stocks available that can enhance portfolio income [1] Group 2: British American Tobacco (BTI) - British American Tobacco has seen a 40% increase year-to-date and offers a dividend yield of around 6% [2][5] - The company's growth is attributed to new nicotine categories such as vaping and nicotine pouches, with its Velo brand holding a 30% global market share in nicotine pouches [4] - U.S. revenue from nicotine pouches is growing in triple digits, helping to offset declines in traditional cigarette sales [4] Group 3: PepsiCo (PEP) - PepsiCo's stock has experienced a 30% drawdown, resulting in a dividend yield of 4% [7] - Despite concerns over slowing volume growth and competition from weight loss drugs, PepsiCo projects organic revenue growth in 2025 due to its historical pricing power [8] - Over the past decade, PepsiCo's dividend per share has increased by 100%, and the current yield is the highest in 10 years, presenting a buying opportunity [9] Group 4: Altria Group (MO) - Altria Group has the highest dividend yield on the list at 7% [11] - The company primarily relies on cigarette sales for profits, facing challenges in expanding into new nicotine categories [12] - Altria has managed to maintain profitability through price increases and share buybacks, reducing shares outstanding by 15% over the last decade, which supports dividend growth [13][14]
Best Stock to Buy Right Now: Constellation Brands vs. Altria
The Motley Fool· 2025-07-12 08:25
Core Viewpoint - Constellation Brands and Altria are both considered stable blue chip stocks, but Altria has outperformed Constellation significantly over the past three years, raising questions about future investment potential [1][2]. Constellation Brands - Constellation Brands generates most of its revenue from its beer business, with popular brands like Modelo and Corona, and a smaller portion from wine and spirits [4]. - The company faces three major challenges: declining beer consumption among younger consumers, decreasing sales of lower-end wines, and increased costs due to tariffs on imported Mexican beers [5][6]. - Analysts expect Constellation's revenue to decline from $10.2 billion in 2024 to $9.9 billion in 2027, while its earnings per share (EPS) is projected to grow at a compound annual growth rate (CAGR) of 7% [8]. - Despite a low valuation at 14 times forward earnings and a forward yield of 2.5%, the lack of near-term catalysts makes it an unappealing investment [9]. Altria - Altria primarily generates revenue from its Marlboro cigarettes and has a strong domestic focus, which protects it from tariffs and foreign-exchange issues [10][11]. - The company has been countering declining smoking rates by raising cigarette prices, cutting costs, and expanding its smokeless product portfolio through investments and acquisitions [12]. - Following a setback with its investment in Juul, Altria acquired Njoy for $2.8 billion in 2023, which is expected to boost EPS starting in 2026 [13]. - Analysts predict Altria's revenue will dip slightly from $20.4 billion in 2024 to $20.2 billion in 2027, but its EPS is expected to grow at a steady CAGR of 5% from 2025 to 2027 [14][15]. - Altria's stock is considered cheap at 12 times forward earnings, with a substantial forward yield of nearly 7%, making it a more stable investment compared to Constellation [15]. Investment Recommendation - Altria is viewed as the better investment option due to its more stable business model, larger dividend, and lower valuation multiple compared to Constellation Brands [16].
Behind Altria's Profit Resilience: The Power of Pricing Strategy
ZACKS· 2025-07-11 14:16
Core Insights - Altria Group, Inc. has shown resilience in a challenging environment, primarily driven by its effective pricing strategy despite volume pressures in the cigarette category and strict regulations [1][2][3] Pricing Strategy and Revenue Growth - In Q1 2025, Altria's pricing actions significantly boosted revenues in both Smokeable Products and Oral Tobacco segments, offsetting volume declines and highlighting the inelastic nature of cigarette demand [2][7] - The company's ability to raise prices without losing consumers has been crucial for maintaining profitability, with management projecting adjusted EPS for 2025 to be between $5.30 and $5.45, indicating a year-over-year growth of 2% to 5% from the 2024 base of $5.19 [3][7] Comparison with Competitors - Philip Morris International reported a 10.2% organic net revenue growth and a 16% organic operating income growth in Q1 2025, with pricing contributing significantly to its revenue growth [4] - Turning Point Brands focuses on brand strength and market positioning rather than aggressive pricing, showing volume resilience through consumer trade-down trends [5] Valuation and Earnings Estimates - Altria's shares have increased by 24.4% over the past year, compared to the industry's growth of 55.6% [6] - The forward price-to-earnings ratio for Altria is 10.72X, which is below the industry average of 15.09X [9] - The Zacks Consensus Estimate for Altria's 2025 earnings suggests a year-over-year growth of 4.7%, with 2026 earnings expected to increase by 3.1% [10]