Group 1 - The article emphasizes the importance of companies that are committed to returning capital to shareholders through dividends [1] - The author has been involved in dividend investing since 2009 and has documented their journey towards financial independence since 2018 [1] - The article highlights the author's role as a contributor to various financial platforms, focusing on dividend growth stocks and occasional growth stocks [1] Group 2 - The author expresses a beneficial long position in the shares of a specific company, indicating a personal investment interest [1]

Core Viewpoint - Despite market volatility due to rising hostilities in the Middle East, it remains a favorable time to invest in growth stocks for the long term [1] Group 1: Company Highlights - **Nvidia**: Dominates the GPU market with a 92% share, driven by AI infrastructure demand and its CUDA software program [2] - **Broadcom**: Sees strong growth in networking and custom AI chip development, with a projected market opportunity of $60 billion to $90 billion by fiscal 2027 [4] - **Taiwan Semiconductor Manufacturing**: Leading contract semiconductor manufacturer benefiting from increased AI infrastructure spending and chip consumption [5][6] - **Palantir Technologies**: Gaining traction in the U.S. commercial sector with its AI platform, which organizes data for real-world applications [7] - **Alphabet**: Strong growth in cloud computing and AI-powered search, leveraging its distribution and ad network advantages [9] - **Amazon**: Market leader in e-commerce and cloud computing, heavily investing in AI to enhance efficiency and profitability [11] - **Pinterest**: Transforming its platform with engaging features and AI tools, leading to user growth and better monetization [12] - **Philip Morris International**: Growth driven by smokeless products with better unit economics, showing resilience in international markets [14] - **Dutch Bros**: Strong same-store sales growth with expansion opportunities through mobile ordering and menu diversification [16] - **e.l.f. Beauty**: Rapidly growing in the mass-market cosmetic space, recently acquiring Hailey Bieber's Rhode brand for further growth potential [17]

Core Viewpoint - The U.S. Supreme Court ruled that individuals adversely affected by FDA orders can challenge the agency in court, affirming the right of retailers to contest FDA decisions that impact their sales [1][2][3]. Group 1: Legal Context - Under the Family Smoking Prevention and Tobacco Control Act (TCA), manufacturers must obtain FDA approval to sell certain vaping products, such as R.J. Reynolds' "Vuse" e-cigarettes [2]. - The FDA denied R.J. Reynolds' application, which led to a ban on the sale of Vuse e-cigarettes by retailers who were previously allowed to sell them while the application was pending [2]. - Retailers argued that the FDA's decision adversely affected them by resulting in lost sales, leading to a petition for review in the U.S. Court of Appeals for the Fifth Circuit [2]. Group 2: Court Rulings - The Fifth Circuit ruled that retailers have standing to challenge the FDA's decision, rejecting the FDA's argument that only the manufacturer could be considered "adversely affected" under the TCA [2]. - The Supreme Court affirmed the Fifth Circuit's judgment, reinforcing the broad interpretation of "adversely affected" as it relates to judicial review of agency actions [3]. Group 3: Implications of the Ruling - The ruling prevents the FDA from narrowing the scope of judicial review provisions under the TCA and other statutes, allowing those harmed by agency actions to seek relief in federal court [3]. - The decision is seen as a significant affirmation of the ability for individuals and entities to challenge federal regulations, even if they were not directly involved in the agency's decision-making process [4].

Key Takeaways Stocks making new highs tend to make even higher highs. Both PM and STRL shares have benefited from strong quarterly results. Both companies' near-term outlooks allude to further gains. When stocks are cruising near all-time or 52-week highs, it reflects considerable bullishness with trends where buyers are in control. Stocks making new highs tend to make even higher highs, particularly when analysts' positive earnings estimate revisions are present.   That’s been precisely the case for Phil ...

Iqos logo is seen at the store in Warsaw, Poland on November 13, 2024. (Photo by Jakub ... More Porzycki/NurPhoto via Getty Images)NurPhoto via Getty ImagesQuestion: Why would you pay 37 times earnings for Philip Morris stock when you can buy Google stock for a much cheaper valuation of 19 times earnings? You wouldn’t, especially when you consider three simple facts: Growth: Google’s revenue growth rate is accelerating at over 13% - better than Philip Morris’s revenue growth of 7%. Over the last three years ...

Core Insights - Philip Morris International (PM) relies heavily on pricing as a primary driver for earnings, achieving a 12.7% year-over-year increase in adjusted earnings per share (EPS) to $1.69 in Q1 2025, with pricing contributing 6 percentage points to organic revenue growth of 10.2% [1][7] - The company has raised its full-year EPS forecast to a range of $7.36-$7.49, raising questions about the sustainability of this momentum solely through pricing [1] Pricing Strategy and Market Performance - Continued pricing strength was noted in key markets such as Turkey, Poland, and Germany, although gross pricing is expected to moderate for the remainder of the year [2] - In the smoke-free category, gross margins expanded by 670 basis points, exceeding 70%, with ZYN shipments increasing by 63% in the quarter, highlighting the segment's strategic importance [2][3] Competitive Landscape - Altria Group (MO) reported a 10.8% increase in net price realization for combustibles, but faces challenges with consumer pressure leading to a shift towards discount brands [4] - Turning Point Brands (TPB) experienced significant growth in its modern oral segment, but faced margin pressure and acknowledged the need for further investment to enhance profitability [5] Valuation and Earnings Estimates - Philip Morris shares have increased by 4.9% over the past month, slightly underperforming the industry growth of 5.1% [6] - The forward price-to-earnings ratio for PM is 23.19X, compared to the industry average of 15.64X, indicating a premium valuation [8] - The Zacks Consensus Estimate for PM's 2025 earnings suggests a year-over-year growth of 13.7%, with an 11.7% increase projected for 2026 [9]

Market Overview - U.S. stock markets experienced significant volatility in the first half of 2025, contrasting with the smooth rally of the previous two years, primarily due to tariffs imposed by the Trump administration, inflation fears, and concerns over U.S. AI companies [1] - Recent positive developments in global tariffs, a declining inflation rate, and favorable economic data have led to a recovery in Wall Street, alleviating recession fears [2] Geopolitical Factors - The U.S.-China trade deal remains unfinalized, contributing to ongoing market fluctuations, alongside geopolitical tensions in the Middle East and the prolonged conflict between Russia and Ukraine [3] Consumer Staples Sector - The consumer staples sector is characterized as mature and fundamentally strong, with demand for essential products being relatively immune to economic cycles, making it a defensive investment choice [5][6] - This sector is known for stable earnings and cash flows, providing a safe haven for investors during market volatility [6] Recommended Stocks - Investment in defensive stocks like consumer staples is advised to stabilize portfolios, with five high-dividend paying stocks recommended: Philip Morris International Inc. (PM), The Coca-Cola Co. (KO), Mondelez International Inc. (MDLZ), Altria Group Inc. (MO), and Corteva Inc. (CTVA) [4] Company Performance Philip Morris International Inc. (PM) - PM anticipates 2025 volume growth, with smoke-free products projected to rise by 12-14%, aiming for substantial smoke-free status by 2030 [10][11][12] - Expected revenue and earnings growth rates for PM are 8.1% and 13.7%, respectively, with a current dividend yield of 2.94% [13] The Coca-Cola Co. (KO) - Coca-Cola reported its ninth consecutive earnings beat in Q1 2025, driven by broad-based growth and effective execution of its all-weather strategy [14][15] - Expected revenue and earnings growth rates for KO are 2.5% and 3.1%, respectively, with a current dividend yield of 2.93% [15] Mondelez International Inc. (MDLZ) - Mondelez achieved 3.1% organic revenue growth in Q1 2025, supported by strategic pricing and strong performance in core categories [16][17] - Expected revenue and earnings growth rates for MDLZ are 5.3% and -10.1%, respectively, with a current dividend yield of 2.83% [18] Altria Group Inc. (MO) - Altria's first-quarter results were bolstered by pricing power despite weaker volumes, particularly in the smokeable product unit [19][20] - Expected revenue and earnings growth rates for MO are -1.4% and 5.3%, respectively, with a current dividend yield of 6.92% [21] Corteva Inc. (CTVA) - Corteva operates in agriculture, focusing on seed development and crop protection, with operations across multiple regions [22][23][24] - Expected revenue and earnings growth rates for CTVA are 2.5% and 16.3%, respectively, with a current dividend yield of 0.92% [25]

Core Insights - Altria Group, Inc. (MO) is trading at a significant discount compared to industry peers and the broader market, presenting a potential value opportunity for long-term investors [1][3] - The stock has a forward 12-month price-to-earnings (P/E) ratio of 10.81, lower than the industry average of 15.73 and the S&P 500's average of 21.85, supported by a Zacks Value Score of B [1][3] - Despite favorable valuations, Altria's stock performance has lagged behind competitors and the industry average [4] Valuation and Performance - Altria's relative undervaluation is highlighted when compared to competitors like Philip Morris International Inc. (PM) and Turning Point Brands (TPB), which have forward P/E ratios of 21.18 and 21.07, respectively [3] - Altria's stock has gained 1.8% over the past three months, underperforming the industry average growth of 17.1% and the S&P 500's return of 5.4% [4] - As of June 17, 2025, Altria stock closed at $58.99, approximately 3.7% below its 52-week high of $61.26, and is trading above both its 50-day and 200-day moving averages, indicating bullish momentum [7][8] Growth Strategy - Altria is focusing on a smoke-free future, with its oral nicotine pouch brand on! showing significant growth, with shipments rising 18% year over year [12] - The brand gained market share in both the oral tobacco category and nicotine pouch market, reflecting strong brand equity and consumer loyalty [12] - Pricing power is a critical aspect of Altria's growth strategy, with strategic price increases helping to offset declines in traditional cigarette volumes [13] Financial Outlook - Altria projects adjusted earnings per share (EPS) for 2025 between $5.30 and $5.45, indicating up to 5% year-over-year growth from a base of $5.19 in 2024 [13] - The Zacks Consensus Estimate for EPS has seen upward revisions, with the current year estimate increasing by 4 cents to $5.39 and next year's estimate rising by a cent to $5.55 [15] - Current projections suggest year-over-year EPS growth of 5.3% this year and 3% next year [15] Strategic Initiatives - Altria has launched the "Optimize & Accelerate" initiative aimed at improving speed, agility, and cost efficiency to support its smoke-free transformation [14] - The company is retooling its e-vapor platform through NJOY, focusing on regulated vapor products that align with consumer preferences [14] - These strategic moves position Altria to lead in the next generation of nicotine innovation [14] Investment Consideration - Given Altria's attractive valuation, solid earnings outlook, and strategic focus on smoke-free products, the stock is well-positioned for value-focused investors [17] - Despite regulatory challenges and market competition, Altria's strong pricing power and favorable analyst revisions suggest a compelling long-term opportunity in the tobacco industry [17]

Core Insights - Altria Group, Inc. is facing significant challenges as it transitions towards smoke-free alternatives, primarily due to the rise of illicit flavored disposable e-vapor products that are reshaping the U.S. nicotine market [1][3]. Company Performance - In Q1 2025, Altria reported that the adult e-vapor user base in the U.S. has exceeded 20 million, with a year-over-year increase of over 2.6 million users, largely driven by disposable e-vapor products which gained nearly 4 million new users, reaching around 14 million [2]. - Altria estimates that over 60% of the expanding e-vapor market is now dominated by unauthorized, non-compliant products, which poses a significant challenge to its smoke-free revenue growth [2][10]. Market Dynamics - The surge in illicit e-vapor products is a major obstacle for Altria's smoke-free revenue growth, dampening its progress despite an increasing market presence [3]. - The company is collaborating with regulators to address enforcement gaps, but the ongoing availability of illicit products remains a significant barrier [4]. Competitive Landscape - Major tobacco companies like Philip Morris International and British American Tobacco are also accelerating their transition towards smoke-free alternatives, investing in reduced-risk products to adapt to changing consumer preferences and regulatory landscapes [6]. - Philip Morris reported that smoke-free offerings contributed 44% of its gross profit in Q1 2025, with a 20.4% rise in net revenues and a 33.1% increase in smoke-free gross profit [7]. - British American Tobacco aims to reach 50 million consumers by 2030, with its smokeless user base reaching 29.1 million in 2024 [8]. Financial Metrics - Altria's shares have gained 14.4% year-to-date, compared to the industry's growth of 40.8% [9]. - The company trades at a forward price-to-earnings ratio of 10.96X, below the industry average of 15.74X, with a forecasted EPS growth of 5.3% for 2025 [10][12]. - The Zacks Consensus Estimate for Altria's 2025 earnings implies a year-over-year growth of 5.3%, while the 2026 earnings estimate suggests an increase of almost 3% [13].

Market Overview - The U.S. stock market is expected to experience volatility due to rising tensions between Israel and Iran, which have led to increased oil prices and concerns about a broader regional conflict [1] - Uncertainty surrounding the Federal Reserve's interest rate decisions amid these geopolitical risks is adding further pressure to the market [1] Investment Strategy - A curated portfolio of low-beta stocks is recommended as a strategy to navigate the uncertain market conditions [2] - Low-beta stocks such as VirTra Inc. (VTSI), Franco-Nevada Corporation (FNV), Elbit Systems Ltd (ESLT), and Philip Morris International Inc. (PM) are highlighted as potential investment opportunities [2] Stock Characteristics - Beta is a measure of a stock's volatility compared to the market, with a beta of 1 indicating movement in line with the market, greater than 1 indicating higher volatility, and less than 1 indicating lower volatility [3][4] - Stocks with a beta between 0 and 0.6 are screened for lower volatility, alongside other criteria such as positive price movement over the last month, average trading volume greater than 50,000, a price of at least $5, and a Zacks Rank of 1 (Strong Buy) [5][6] Company Insights - **VirTra Inc. (VTSI)**: The company is benefiting from the U.S. Army's Integrated Visual Augmentation System (IVAS) project, which enhances training for soldiers and positions VirTra favorably for military contracts [7][9] - **Franco-Nevada Corporation (FNV)**: Recently invested $1.05 billion in a royalty on the Côté Gold Mine, which is expected to close by Q2 2025, indicating strong revenue potential from significant gold resources [9][10] - **Elbit Systems Ltd (ESLT)**: The company has a substantial backlog of $23.1 billion, with 66% of its contracts coming from international markets, reflecting strong global demand for defense solutions [9][11] - **Philip Morris International Inc. (PM)**: Transitioning from traditional cigarettes to smoke-free products like IQOS and ZYN, while focusing on shareholder returns and cost-cutting measures [12]