Core Viewpoint - Altria's stock has seen a slight increase of approximately 0.6% since its last earnings report, underperforming compared to the S&P 500, raising questions about its future performance leading up to the next earnings release [1] Estimates Movement - Estimates for Altria have trended upward over the past month, indicating a positive outlook for the stock [2] VGM Scores - Altria has a Growth Score of B, a Momentum Score of D, and a Value Score of B, placing it in the top 40% for the value investment strategy. The overall aggregate VGM Score for the stock is A, which is significant for investors not focused on a single strategy [3] Outlook - The upward trend in estimates suggests a promising outlook for Altria, which currently holds a Zacks Rank of 3 (Hold). The expectation is for an in-line return from the stock in the upcoming months [4] Industry Performance - Altria is part of the Zacks Tobacco industry, where another player, Philip Morris, has experienced a gain of 4.3% over the past month. Philip Morris reported revenues of $9.3 billion for the last quarter, reflecting a year-over-year increase of 5.8% [5] Philip Morris Earnings Expectations - For the current quarter, Philip Morris is projected to report earnings of $1.84 per share, representing a year-over-year change of 15.7%. The Zacks Consensus Estimate for Philip Morris has remained unchanged over the last 30 days, and it holds a Zacks Rank of 1 (Strong Buy) [6]

Group 1 - Altria Group, Inc. (NYSE: MO) is favored by many dividend investors and is also considered attractive for total return potential in a turbulent market environment [1] - The focus is on identifying companies with exceptional quality and a proven ability to reinvest capital for impressive returns, particularly those with a market capitalization of less than $10 billion [1] - The ideal companies should demonstrate long-term capital compounding capabilities with a high compound annual growth rate, potentially delivering tenfold returns or greater [1] Group 2 - A long-term investment perspective is maintained to generate higher returns compared to market indices, especially in a rapidly evolving investment landscape [1] - A conservative investment strategy is primarily adopted, with occasional pursuits of opportunities that present a favorable risk-reward ratio [1] - Careful consideration is given to these ventures, with proportional allocation within the portfolio to maintain overall stability [1]

Market Overview - A recent ruling by the U.S. trade court declared President Trump's global tariffs illegal, contributing to a new wave of market uncertainty [1] - The Federal Reserve's current wait-and-see approach adds to the uncertainty regarding future interest rate directions [1] Investment Strategy - Creating a curated portfolio of low-beta stocks is recommended as a strategy to navigate market volatility [1] - Low-beta stocks are less volatile than the market, providing a safeguard against uncertainty [1] Stock Recommendations - Suggested stocks include Natural Gas Services Group Inc (NGS), Stride Inc. (LRN), AptarGroup Inc. (ATR), and Philip Morris International Inc. (PM) [2] Stock Characteristics - Beta measures the volatility of a stock relative to the market, with a beta of 1 indicating movement in line with the market [3][4] - Stocks with a beta between 0 and 0.6 are screened for lower volatility [5] Screening Criteria - Stocks must have a positive price change over the last four weeks [5] - Average 20-day trading volume should exceed 50,000 to ensure liquidity [6] - Stocks must be priced at $5 or higher [6] - Zacks Rank of 1 indicates strong buy potential, suggesting significant outperformance over the next one to three months [6] Company Insights - **Natural Gas Services (NGS)**: Increased demand for liquefied natural gas (LNG) exports is driving the need for compression equipment, benefiting NGS as more pipelines are built [7] - **AptarGroup (ATR)**: Positioned for growth due to trends in healthcare moving towards home settings and rising demand for drug delivery systems [8] - **Stride Inc. (LRN)**: Focuses on innovative educational solutions, benefiting from the growing demand for school choice and tutoring services [10] - **Philip Morris International (PM)**: Transitioning from traditional cigarettes to smoke-free products, with a focus on shareholder rewards and cost-cutting initiatives [11]

Market Overview - Wall Street has experienced volatility in 2025 due to overstretched valuations of U.S. stocks, persistent inflation, weak economic data, geopolitical conflicts, and concerns regarding the Trump administration's trade policies [1] - The Federal Reserve's uncertainty over rate cuts, recession fears, and the emergence of a low-cost Chinese AI platform have contributed to investor unease [1] Investment Strategy - It is advisable to invest in high dividend-paying corporate giants, which typically possess strong financial positions, robust business models, and globally recognized brand value [2] - Regular dividend payments from these firms can provide a steady income stream during market fluctuations [2] Company Highlights Philip Morris International Inc. (PM) - Zacks Rank 1, benefiting from strong pricing power and an expanding smoke-free product portfolio, aiming to become substantially smoke-free by 2030 [6][7] - Expected revenue and earnings growth rates of 8.1% and 13.7% respectively for the current year, with a current dividend yield of 3.01% [8] CVS Health Corp. (CVS) - Zacks Rank 2, investing in technology to reduce costs and enhance customer experience, with plans to close 271 stores to save over $500 million in 2025 [9][10] - Expected revenue and earnings growth rates of 3.7% and 12.6% respectively for the current year, with a current dividend yield of 4.34% [10] Energy Transfer LP (ET) - Zacks Rank 2, benefiting from long-term fee-based contracts, with nearly 90% of earnings from such contracts [11][13] - Expected revenue and earnings growth rates of 18.2% and 12.5% respectively for the current year, with a current dividend yield of 7.30% [13] GSK plc (GSK) - Zacks Rank 2, strong position in HIV and Vaccines, with increased sales growth in Specialty Medicines and promising new products [14][15] - Expected revenue and earnings growth rates of 5.1% and 6.7% respectively for the current year, with a current dividend yield of 4.28% [16] NatWest Group plc (NWG) - Zacks Rank 1, providing a range of banking and financial services in the UK and internationally [17][18] - Expected revenue and earnings growth rates of 20.1% and 17.3% respectively for the current year, with a current dividend yield of 5.41% [19]

Investment Rating - The report indicates a moderate growth in total store sales, with a rating of low single-digit growth (LSD) for the latest quad-week [1]. Core Insights - Total store sales increased by 2% in the latest quad-week, driven primarily by the Dairy category, while Frozen and Alcohol categories experienced declines [1]. - The report highlights a mixed performance in the Beverages sector, with non-alcoholic categories showing stable trends for carbonated soft drinks (CSDs), sparkling water, and sports drinks, while ready-to-drink (RTD) tea and coffee saw accelerated sales growth [2]. - In the Tobacco sector, sales growth trends remained stable for the overall cigarette category, although specific companies like IMB experienced a deceleration in growth [3]. Summary by Category HPC (Household and Personal Care) - HPC sales growth improved to 2.0% from 1.5% in the previous month, primarily driven by higher pricing, despite lower volume growth [10]. - KMB continued to show robust sales growth, while PG and CL experienced slight moderation in growth [10]. - KVUE and CHD saw improvements in sales growth, with KVUE benefiting from higher volume growth and CHD from improved volume trends [10]. Beverages - Non-alcoholic beverage sales trends were mixed, with stable trends for CSDs and sparkling water, while RTD tea and coffee saw accelerated growth [2]. - Alcoholic beverage sales trends modestly decelerated across all categories, with some companies like BF showing improved trends [2]. Tobacco - Overall sales growth in the cigarette category remained stable, but IMB saw a deceleration in growth trends [3]. Food - Sales in the Food category decelerated in the latest quad-week, contrasting with the growth seen in HPC [1]. Private Label - Private label's dollar share growth remained modest at the total store level, with slight fluctuations across various categories [9].

Dividend Stocks Overview - Dividend yield is a key metric for investors, indicating how much a company pays in annual dividends relative to its stock price [1] - The sustainability of a company's dividend yield is often assessed through its dividend payout ratio, which shows the percentage of net income distributed as dividends [1][3] - A high dividend yield may result from a declining stock price, which could indicate underlying issues [2] Altria Group (MO) - Altria Group has a dividend yield of 6.83% and an annual dividend of $4.08, with a payout ratio of 68.34% [5][6] - The company has a strong track record of 56 consecutive years of dividend increases and an annualized 3-year dividend growth of 4.35% [5][8] - Despite the decline in traditional tobacco smoking, Altria is pivoting towards alternative nicotine products, which may support future revenue and earnings growth [7] - The stock has delivered a total return of over 609% in the last 15 years, and its current P/E ratio of 9x indicates it is undervalued compared to its historical performance [6][7] United Parcel Service (UPS) - UPS has a dividend yield of 6.88% and an annual dividend of $6.56, with a high payout ratio of 95.63% [9][10] - The company has a history of maintaining dividends even during economic downturns, with a cash flow payout ratio of 66% [10] - UPS is undergoing a turnaround plan that is expected to improve margins, and its P/E ratio is around 14x, which is a discount to historical averages [11] Verizon Communications (VZ) - Verizon has a dividend yield of 6.25% and an annual dividend of $2.71, with a payout ratio of 64.52% [12][14] - The company has a 20-year track record of dividend increases, but its recent total return over 10 years is only 45.22% [13][14] - Verizon is facing challenges with subscriber losses but has received FCC approval for a deal to acquire Frontier, which may enhance its competitive position [13][14]

Group 1 - The S&P 500's top performers for 2024 include NRG Energy Inc with over 70% gain YTD, driven by increased power demand and clean energy transitions [1] - Palantir Technologies Inc follows closely with a 64% YTD surge, being the only stock from Cathie Wood's ARK Invest to feature in the top-performing list [1][2] - Other notable performers include Howmet Aerospace Inc (+49% YTD), Philip Morris International Inc (+47%), and Uber Technologies Inc (+38%), indicating strength across various sectors [2] Group 2 - Palantir has experienced a remarkable 485% surge over the past year, attracting investor interest due to its advanced data analytics and government contracts [3] - Technical indicators for Palantir stock, such as moving averages and MACD, suggest a continued bullish momentum [4] - Wall Street analysts have a cautious outlook on Palantir, with an average price target of $118, indicating limited upside potential from the current price of $123 [5]

Core Viewpoint - Philip Morris shares have increased by approximately 3% over the past month, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Estimates Movement - Estimates for Philip Morris have trended upward over the past month, indicating a positive outlook for the stock [2] VGM Scores - Philip Morris has a subpar Growth Score of D and a Momentum Score of F, with an overall aggregate VGM Score of F, placing it in the bottom 40% for investment strategies [3] Outlook - The upward trend in estimates suggests a promising outlook, and Philip Morris holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [4]

Core Points - Ispire Technology Inc. has received an interim license from the Malaysian Government for the manufacturing of nicotine products, marking a significant milestone for the company [1][2] - This license is the first and only nicotine manufacturing license in Malaysia, allowing Ispire to begin manufacturing and marketing nicotine products immediately [1][2] - The Malaysian facility is set to expand from six production lines to 80, enhancing production capacity significantly [2] Company Overview - Ispire Technology Inc. specializes in the research, development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products [3] - The company holds over 200 patents globally and markets its tobacco products under the Aspire brand, while cannabis products are marketed under the Ispire brand [3] - Ispire's products are sold worldwide, excluding the U.S., People's Republic of China, and Russia, primarily through a global distribution network [3]

Summary of 22nd Century Group (XXII) Conference Call - May 21, 2025 Company Overview - **Company Name**: 22nd Century Group Inc. - **Ticker Symbol**: XXII - **Headquarters**: Mocksville, North Carolina - **Industry**: Tobacco, specifically focused on nicotine harm reduction - **Key Brands**: VLN, Smoker Friendly, Pinnacle Core Points and Arguments - **Nicotine Harm Reduction**: The company is a pioneer in the nicotine harm reduction space, offering products with significantly lower nicotine content, specifically the VLN brand which contains 95% less nicotine than standard cigarettes [3][11][41] - **FDA Compliance**: 22nd Century Group's VLN products are the only FDA-authorized low nicotine combustible cigarettes, aligning with the FDA's low nicotine mandate issued in January 2025 [5][34] - **Market Strategy**: The company aims to create a new low nicotine category (VLNC) to differentiate its products from traditional cigarettes, similar to how light beers are marketed [4][7] - **Growth Initiatives**: Plans to expand the VLN product line with new SKUs and partner brands, enhancing market penetration through existing retail relationships [6][18][22] - **Retail Presence**: Currently, the company has products in 5,100 retail stores across 26 states, with plans to expand to all 50 states [21][23] Financial Performance - **Debt Reduction**: The company has reduced its debt from over $20 million to $3.9 million, aiming for a debt-free status in the future [31][36] - **Operational Efficiency**: Operating expenses have decreased to under $2 million, with a target to reach breakeven by Q4 2025 [31][37] Market Dynamics - **Consumer Trends**: There is a growing awareness and demand for nicotine harm reduction products, with billions being spent on awareness campaigns [10][12] - **Competitive Landscape**: Traditional tobacco companies continue to focus on high-nicotine products, which creates a market opportunity for 22nd Century Group to position itself as a healthier alternative [42][43] Product Development - **R&D Focus**: The company is working on expanding its product offerings, including non-combustible low nicotine products and new tobacco strains through partnerships with research institutions [29][30] - **New Product Launch**: Smoker Friendly has introduced a natural cigarette product, Smoker Friendly Black Label, which is positioned as a cost-effective alternative to premium brands [25][27] Consumer Targeting - **Ideal Customers**: The target market includes smokers looking to reduce their nicotine dependence, such as pregnant women or those in restrictive work environments [45][46] Additional Insights - **Marketing Strategy**: The company is revamping its branding to make it more appealing and accessible to consumers, aiming to capture attention in retail environments [9][16][20] - **Long-term Vision**: The company is focused on establishing itself as a leader in the low nicotine category, with a commitment to consumer choice and health [8][34][41] This summary encapsulates the key points discussed during the conference call, highlighting the company's strategic direction, market positioning, and financial health.