Altria (MO -0.42%) owns the Marlboro brand, which has a roughly 41% market share in North America. That's huge and highlights the company's dominance in this geographic region. But the downside here is that Altria is only operating in this single region. If history is any guide, Altria's cigarette business will continue to worsen over the next three years.Altria may have made a big mistakeA few years back, Altria spun off Philip Morris International as a separate company. Altria retained its North American ...

Core Insights - Altria Group, Inc. (MO) is currently undervalued with a forward 12-month P/E ratio of 9.85, which is a 16.9% discount compared to the Zacks Tobacco industry's average of 11.85 [1] - The stock has shown strong performance over the past year, rising by 30.8%, outperforming the industry average of 28% and the S&P 500's increase of 27.3% [3] - Altria is focusing on a smoke-free future, with significant growth in its NJOY e-vapor brand and oral nicotine pouch brand, on!, which saw a 46% increase in shipment volume [10][12] Valuation and Market Position - Altria's stock closed at $52.60, which is 9.4% below its 52-week peak of $58.04 [3] - The stock is trading above its 100-day and 200-day moving averages, indicating a bullish trend [13] - Despite the lower valuation, there are market concerns regarding Altria's growth prospects, which may reflect skepticism about its ability to meet market expectations [4] Growth Strategies and Challenges - Altria is implementing the "Optimize and Accelerate" initiative, targeting at least $600 million in cost savings over the next five years [10] - The company faces challenges from the rise of illicit flavored disposable e-vapor products, which have increased by 45% in users over the past year, impacting the growth of NJOY [15] - Domestic cigarette volumes saw an adjusted decline of 11.5% in the fiscal third quarter, exceeding the industry's average decline of 9% [15] Strategic Partnerships and Future Outlook - Altria is diversifying its portfolio through strategic partnerships, including a joint venture with Japan Tobacco to develop the Ploom heated tobacco device [16] - Analysts are optimistic about Altria's earnings prospects, with the Zacks Consensus Estimate for fiscal 2024 EPS rising to $4.12, indicating a year-over-year growth of 3.4% [17] - The consensus for fiscal 2025 EPS has also increased from $5.30 to $5.33, suggesting a jump of 4.1% from the previous year [17]

They say that investing is a journey. Just over a year ago, I recommended readers to sell Altria (NYSE: MO ), but now I have changed my opinion entirely. This shift was based on the company's unexpected resilience, competitive positioning, and whatAnalyst’s Disclosure: I/we have a beneficial long position in the shares of MO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from See ...

Altria (MO) ended the recent trading session at $52.99, demonstrating a -0.49% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.09%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.1%.The owner of Philip Morris USA, the nation's largest cigarette maker's stock has dropped by 4.88% in the past month, falling short of the Consumer Staples sector's loss of 1.58% and the S&P 500's loss of 0.29%.The upcoming earnings release of ...

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Are you looking for a steady income stream to help you cover your monthly expenses or planning for retirement with the goal of achieving sustainable dividend income?I specialize in constructing investment portfolios aimed at generating additional income through dividends. My focus lies on identifying companies with significant competitive advantages and strong financials that can provide you with an attractive Dividend Yield and Dividend Growth, thus enabling you to augment your dividend income annually. By ...

Analyst Background - The analyst is a full-time professional with a focus on a wide range of stocks, aiming to provide unique insights and contrasting views on their portfolio [1] Disclosure and Independence - The analyst has no stock, option, or derivative positions in any mentioned companies and no plans to initiate such positions within the next 72 hours [2] - The analysis is based on the analyst's own opinions and is not influenced by compensation or business relationships with any mentioned companies [2] Purpose of Analysis - The analysis is provided for informational purposes only and should not be considered professional investment advice [3] - Investors are advised to conduct personal research and due diligence before making any investment decisions [3] Seeking Alpha's Role - Seeking Alpha is not a licensed securities dealer, broker, or investment adviser, and the views expressed may not reflect those of Seeking Alpha as a whole [4] - The platform hosts third-party analysts, including both professional and individual investors, who may not be licensed or certified by any regulatory body [4]

Investment Analysis - Altria Group (NYSE: MO) was previously analyzed in October with a Buy rating, focusing on its dividends [1] - The analysis was conducted by Sensor Unlimited, who leads the investing group Envision Early Retirement [1] - Sensor Unlimited offers proven solutions for generating high income and high growth through dynamic asset allocation [1] - The investing group provides two model portfolios: one for short-term survival/withdrawal and one for aggressive long-term growth [1] - Members have direct access via chat to discuss ideas, receive monthly updates on all holdings, tax discussions, and ticker critiques by request [1] Analyst Background - Sensor Unlimited is an economist with a PhD in financial economics and a quantitative modeler [2] - For the past decade, Sensor Unlimited has covered the mortgage market, commercial market, and the banking industry [2] - Sensor Unlimited writes about asset allocation and ETFs, particularly those related to the overall market, bonds, banking and financial sectors, and housing markets [2] Disclosure - The analyst has a beneficial long position in Altria Group (NYSE: MO) through stock ownership, options, or other derivatives [3] - The article expresses the analyst's own opinions and was written without compensation other than from Seeking Alpha [3] - The analyst has no business relationship with any company whose stock is mentioned in the article [3]

Core Viewpoint - Altria is a controversial stock due to its tobacco production, but its strong financial performance and high dividend yield attract investors [1] Group 1: Analyst Upgrade - Bank of America's analyst Lisa Lewandowski upgraded Altria from neutral to buy and raised the target price from $55 to $65, indicating a nearly 19% upside from the stock's closing price on December 11 [2][3] Group 2: Factors Influencing Upgrade - The analyst believes that the incoming Republican administration will implement favorable policies for Altria, including tariffs on foreign producers and potential corporate tax cuts [4] - Improved economic prospects for lower-income consumers could enhance the convenience retail sector, benefiting Altria as convenience stores are significant sellers of tobacco products [5] - The market has not fully accounted for the benefits of Altria's management cost-cutting program [5] Group 3: Industry Challenges - A significant challenge for Altria is the ongoing decline in cigarette smoking in major markets like the U.S., despite some growth in next-generation products like vaping [6][7] - The popularity of vaping products has not yet matched that of traditional cigarettes, necessitating continued efforts to convince investors of the future potential of these goods [7]

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. The main thing about Altria that's likely attracting investors is its ultra-high 7% dividend yield and the fact that the dividend has risen with each passing year for several decades now.But that enviable yield may not be as good as it seems.Investors interested in dividends (and getting a high yield) might be better off looking at stocks like Realty Income ...