Core Viewpoint - Altria's stock is considered undervalued, with its valuation reflecting negative free cash flow per share growth for the next decade [1] Group 1: Investment Strategy - The investment approach focuses on GARP (growth at a reasonable price) stocks while also seeking opportunities in other areas [1] - There is no specified time horizon for investments; the strategy is to hold stocks as long as the investment thesis remains valid [1] Group 2: Analytical Background - The analyst has developed market-beating algorithms using Python to identify attractive investment opportunities [1] - Previous experience includes roles at TipRanks as an analysis/news writer and editor, enhancing market awareness and understanding of reader interests [1] - The analyst emphasizes the importance of accuracy and detail in financial information, aiming to correct misinformation in the market [1]

Core Insights - Altria's stock is considered undervalued, with its valuation reflecting negative free cash flow per share growth for the next decade [1] - The investment strategy focuses on GARP (growth at a reasonable price) stocks while also exploring other opportunities [1] - The investment horizon is flexible, with a focus on holding stocks as long as the investment thesis remains valid [1] Company Analysis - Altria's current valuation suggests a pessimistic outlook, indicating potential for recovery if the company's fundamentals improve [1] - The analyst has developed algorithms to identify attractive investment opportunities, indicating a data-driven approach to investment [1] Market Context - The article emphasizes the importance of accurate information in the investment landscape, highlighting the prevalence of misinformation [1] - The analyst's background in writing and editing for financial news platforms contributes to a deeper understanding of market trends and investor interests [1]

Core Insights - The article discusses the author's journey in dividend growth investing and the establishment of a blog that documents this journey, aiming for financial independence [1]. Group 1 - The author has been investing since September 2017 and has a long-standing interest in dividend investing since around 2009 [1]. - The blog "Kody's Dividends" was launched in July 2018 to document the author's financial independence journey through dividend growth investing [1]. - The author expresses gratitude for the blog's role in connecting with the Seeking Alpha community as an analyst [1].

Core Insights - The article discusses the author's journey in dividend growth investing and the establishment of a blog that documents this journey, aiming for financial independence [1] Group 1 - The author has been investing since September 2017 and has a long-standing interest in dividend investing since around 2009 [1] - The blog "Kody's Dividends" was launched in July 2018 to share insights and experiences related to dividend growth investing [1] - The author expresses gratitude for the blog's role in connecting with the Seeking Alpha community as an analyst [1] Group 2 - The author holds long positions in shares of companies such as MO, BTI, and PM, either through stock ownership, options, or other derivatives [1] - The article reflects the author's personal opinions and does not involve compensation from any mentioned companies [1]

Group 1 - The French tire maker has cut its full-year outlook due to worsening market conditions [1] - The company cites the impact of U.S. tariffs as a significant factor affecting its performance [1] - There has been a sharp decline in sales in North America, contributing to the revised outlook [1]

Core Insights - Altria Group, Inc.'s oral tobacco business is experiencing strong profitability, with adjusted operating companies income (OCI) margins increasing to 68.7% in Q2 2025, a rise of 3.1 percentage points year-over-year [1][8] - The growth driver is the on! nicotine pouches, which saw a volume increase of 26.5%, compensating for declines in traditional moist smokeless tobacco (MST) brands [2][8] - Sustaining profitability will depend on product mix, competitive pressures, and pricing dynamics in the nicotine pouch category [3][4] Oral Tobacco Business Performance - Altria's oral tobacco segment demonstrates strong operating efficiency despite a 1% dip in total shipment volumes [1][4] - The adjusted OCI increased by 10.9% due to strong pricing and cost efficiencies [2] - The share of on! in the nicotine pouch segment decreased by 2.3 percentage points to 16.7%, while its share in the total U.S. oral tobacco category rose to 8.7% [3] Competitive Landscape - Philip Morris International Inc. reported an adjusted operating income margin of 41.9% in Q2 2025, highlighting effective global pricing and cost management strategies [5] - Turning Point Brands, Inc. achieved a Stoker's products segment adjusted operating income margin of 44.3%, reflecting strong manufacturing efficiency and pricing power [6] Stock Performance and Valuation - Altria's shares have increased by 2.5% over the past month, contrasting with a 1.8% decline in the industry [7] - The forward price-to-earnings ratio for Altria is 12.02X, lower than the industry average of 14.68X [10] - Zacks Consensus Estimate indicates year-over-year earnings growth of 6.1% for 2025 and 2.5% for 2026 [11]

The S&P 500’s bull market is set to turn three years old this weekend. Over that stretch, U.S. large caps have nearly doubled on a total return basis. Consumer Staples, however, has been largely left out of the upside move, butFreelance Financial Writer | Investments | Markets | Personal Finance | RetirementI create written content used in various formats including articles, blogs, emails, and social media for financial advisors and investment firms in a cost-efficient way. My passion is putting a narrative ...

Industry Overview - The Zacks Tobacco industry is facing significant challenges, including declining cigarette sales due to shifting consumer preferences, inflationary pressures, and tightening regulations [1][4] - Rising health awareness and stricter restrictions on smoking are reducing demand for traditional tobacco products, negatively impacting overall industry performance [1][4] Key Trends - **Challenges in Cigarette Sales Volumes**: The industry is experiencing a decline in cigarette sales driven by inflation and changing consumer spending patterns, alongside regulatory restrictions on sales and advertising [4] - **Escalated Costs**: Industry participants are affected by cost inflation related to essential materials, energy, and labor, which poses risks to profit margins [5] - **Rising Popularity of Smoke-Free Options**: There is a growing demand for smoke-free alternatives like heated tobacco and vapor products, driven by health awareness and regulatory changes [6] Industry Performance - The Zacks Tobacco industry currently ranks 165, placing it in the bottom 32% of over 243 Zacks industries, indicating dull near-term prospects [7][8] - The industry's consensus estimate for current financial year earnings has decreased by 1.2% since August 2025, reflecting a negative earnings outlook [9] Market Comparison - Over the past year, the Zacks Tobacco industry has outperformed the S&P 500, gaining 36.4% compared to the S&P 500's growth of 18.4% [11] Valuation Metrics - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 14.44X, lower than the S&P 500's 23.53X and the sector's 16.37X [14] Company Highlights - **Philip Morris International**: This company is transitioning towards a smoke-free future, focusing on reduced-risk products (RRPs) and has seen a 30% increase in shares over the past year [17][19] - **Altria Group**: Altria is prioritizing RRPs and has experienced a 31.7% surge in shares over the past year, supported by its strong legacy brands [22][23] - **Turning Point Brands**: This company has gained momentum with a 105.8% increase in shares over the past year, focusing on innovative product launches and expanding distribution channels [26][28]

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article expresses personal opinions and is not intended as investment advice [2][3] - It emphasizes the importance of conducting individual research before making investment decisions [2]

Core Insights - Altria offers a high dividend yield of 6.4% and has a strong history of regular dividend increases, making it attractive for income-focused investors [1] - However, the company's core cigarette business is facing significant challenges, including a long-term decline in smoking rates and a 10.2% year-over-year volume drop in Q2 2025 [4][5] - Altria's attempts to offset declining volumes through price increases are becoming less effective, with a 2.5% year-over-year revenue decline from smokeable products in Q2 2025 when excluding tobacco taxes [5] Company Overview - Altria primarily produces tobacco products, with cigarettes being its largest segment, alongside cigars, chewing tobacco, nicotine pouches, and vaping products [2] - The company is categorized as a "sin stock" due to the addictive nature of its products, which fosters customer loyalty similar to other consumer staples [3] Business Challenges - The long-term trend away from smoking poses a significant headwind for Altria, and its efforts to find new growth avenues have not yielded positive results, such as investments in Juul and Cronos leading to large write-offs [5][6] - Altria's decision to spin off Philip Morris International has created a new competitor in the U.S. market, as Philip Morris now sells non-cigarette nicotine products domestically [7] - Recent investments, such as the acquisition of NJOY, have also faced setbacks, including legal issues that hindered product sales [8] Investment Considerations - Despite the attractive dividend yield, the risks associated with Altria's business performance and strategic missteps may deter conservative dividend investors [9] - The company's future outlook appears uncertain, and the perceived safety of its dividend yield may be misleading [10]