Altria(US:MO) ZACKS·2026-01-19 17:15Core Insights - Altria Group, Inc. is shifting its business focus towards smoke-free products to counteract declining combustible volumes, with significant progress noted in the third quarter of 2025, particularly in oral nicotine and heated tobacco segments [2][5] Smoke-Free Product Performance - The on! nicotine pouch brand maintained a stable retail market share of 8.7% in Q3 2025, with year-to-date shipment volumes increasing by 14.8% to 133.6 million cans, indicating strong performance in a competitive market [3][9] - Altria has launched on! PLUS in select U.S. markets, targeting both existing smokeless users and consumers switching from other brands, which is seen as a strategic move to enhance its oral nicotine portfolio [4][9] Regulatory Developments - Altria has reached a significant regulatory milestone by filing a combined premarket tobacco product application and modified risk tobacco product application with the FDA for the Ploom device and Marlboro heated tobacco sticks, marking a crucial step in introducing Ploom to American consumers [5] Competitive Landscape - Philip Morris International Inc. reported a 16.6% increase in smoke-free shipment volumes in Q3 2025, with smoke-free products now constituting 41% of its total net revenues, showcasing strong growth in this sector [6] - Turning Point Brands, Inc. experienced a remarkable 627.6% year-over-year increase in Modern Oral sales, which accounted for 30.8% of its total business, reflecting the growing importance of oral nicotine in its smoke-free strategy [7] Financial Performance and Valuation - Altria's shares have increased by 8.3% over the past month, slightly underperforming the industry growth of 9.2% [8] - The company trades at a forward price-to-earnings ratio of 11.09X, which is lower than the industry average of 15.3X, indicating potential value [10] - The Zacks Consensus Estimate projects year-over-year earnings growth of 6.3% for the current financial year and 2.3% for the next [11]