Altria Rises 12% in 3 Months: Should You Buy, Sell or Hold the Stock?

Core Insights - Altria Group, Inc. has experienced strong stock performance, rising 11.8% over the past three months, outperforming the S&P 500's 8% growth and the declines in the Zacks Consumer Staples sector and Zacks Tobacco industry [1][8] - The company's focus on smoke-free products is a key driver of its growth, capitalizing on the consumer shift towards reduced-risk products [5][15] - Altria's second-quarter earnings showed an 8.3% year-over-year increase in adjusted EPS to $1.44, supported by higher pricing, operational efficiencies, and share repurchases [6][8] Stock Performance - Altria closed at $65.40, just 4.7% below its 52-week high of $68.60, indicating bullish market sentiment [4] - The stock is trading above its 200-day moving average, further signaling positive investor sentiment [4] Competitive Landscape - Performance among Altria's peers has been mixed, with Philip Morris International declining 12.1% and British American Tobacco falling 0.7%, while Turning Point Brands rose 16.2% [3] Revenue and Earnings - Revenues, net of excise taxes, remained steady at $5.29 billion, reflecting the strength of Altria's diversified portfolio [9] - The company raised its lower end of 2025 adjusted EPS guidance to $5.35-$5.45, indicating expected growth of 3-5% [9] Product Segments - The on! nicotine pouch brand saw shipments increase by 26.5% year-over-year, contributing to a rise in retail share to 8.7% [10] - Altria's smokeable products segment showed resilience, with adjusted operating income growing 4.2% and Marlboro maintaining a 59.5% market share in the premium category [11] Valuation - Altria's forward 12-month P/E ratio is 11.81, below the industry average of 14.51, making it an attractive value opportunity compared to peers [12][16] - The stock presents a compelling mix of stability and growth potential for investors seeking exposure to the tobacco sector [16]