Core Viewpoint - Wall Street experienced significant volatility in April due to President Trump's tariffs and trade policies, with major stock indexes mostly in negative territory for the month [1][2] Group 1: Stock Performance and Recommendations - A number of corporate giants with market capitalizations over $50 billion have managed to provide positive returns of over 5% month to date despite the turmoil [2] - Five recommended stocks with favorable Zacks Rank include Netflix Inc. (NFLX), Newmont Corp. (NEM), Philip Morris International Inc. (PM), Agnico Eagle Mines Ltd. (AEM), and Spotify Technology S.A. (SPOT) [3] Group 2: Netflix Inc. (NFLX) - Netflix exceeded the Zacks Consensus Estimate for earnings in Q1 2025, maintaining healthy engagement levels despite trade-related challenges [7] - The launch of Netflix's Ad Suite in the U.S. is expected to drive subscriber and average revenue per user (ARPU) growth, with plans for international expansion in Q2 [8] - NFLX's expected revenue and earnings growth rates for the current year are 14% and 27.7%, respectively, with a 1.8% improvement in earnings estimates over the last week [11] Group 3: Newmont Corp. (NEM) - Newmont is advancing its growth projects, including the Ahafo North project, with commercial production expected to start in the second half of 2025 [12][13] - NEM's expected revenue and earnings growth rates for the current year are 0.9% and 16.4%, respectively, with a 2% improvement in earnings estimates over the last week [14] Group 4: Philip Morris International Inc. (PM) - Philip Morris is transitioning to smoke-free products, with strong pricing power and a projected 12-14% growth in smoke-free product sales [15][16] - PM's expected revenue and earnings growth rates for the current year are 7.3% and 13.2%, respectively, with a 2.9% improvement in earnings estimates over the last week [17] Group 5: Agnico Eagle Mines Ltd. (AEM) - Agnico Eagle is focused on production growth through projects like the Kittila expansion and acquisitions, enhancing its market position [18][19] - AEM's expected revenue and earnings growth rates for the current year are 18.9% and 33.3%, respectively, with a 5.8% improvement in earnings estimates over the last week [20] Group 6: Spotify Technology S.A. (SPOT) - Spotify operates through Premium and Ad-Supported segments, with total Monthly Active Users (MAUs) reaching 675 million, surpassing estimates [21][23] - SPOT's expected revenue and earnings growth rates for the current year are 14.8% and 75.8%, respectively, with a 1.6% improvement in earnings estimates over the last week [24]

Altria (MO) came out with quarterly earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $1.15 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.13%. A quarter ago, it was expected that this owner of Philip Morris USA, the nation's largest cigarette maker would post earnings of $1.27 per share when it actually produced earnings of $1.29, delivering a surprise of 1.5 ...

Financial Data and Key Metrics Changes - The Smokable Products segment grew adjusted operating company's income (OCI) by 2.7%, with adjusted OCI margins increasing by 4.2 percentage points to 64.4% [16][18] - Total domestic cigarette volumes declined by 13.7%, with an adjusted decline of 12% when accounting for calendar differences and trade inventory movements [17][18] - The company paid approximately $1.7 billion in dividends and repurchased 5.7 million shares in the first quarter [23] Business Line Data and Key Metrics Changes - The Oral Tobacco Products segment delivered over $400 million in total adjusted OCI, with adjusted OCI margins at 69.2%, slightly down from the previous year [20] - The Oral Tobacco Products segment reported a shipment volume decrease of 5%, with ON! brand growing while MST volumes declined [20][21] - The e-vapor category saw an increase in illicit products, with over 60% of the market comprised of these products [10][42] Market Data and Key Metrics Changes - The e-vapor category included more than 20 million vapers, an increase of over 2.6 million from the previous year [10] - The nicotine pouch category's share increased to 17.9%, up by 0.5 share points year-over-year [9] - The discount cigarette segment grew by 1.8 share points, while Marlboro's retail share declined by one share point [18][19] Company Strategy and Development Direction - The company aims to refine and strengthen its e-vapor product portfolio, particularly following the exit of EnjoyAce from the market [14][42] - The focus remains on maximizing profitability in the combustibles segment while balancing investments in smoke-free categories [51] - The company is advocating for regulatory reforms to address the illicit e-vapor market and enhance enforcement against illicit actors [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that consumers are under economic pressure due to inflation, impacting purchasing behavior [17][30] - The company expects full-year adjusted diluted EPS in the range of $5.3 to $5.45, reflecting a growth rate of 2% to 5% from 2024 [24][25] - Management expressed confidence in the Marlboro brand's resilience despite economic challenges [19][51] Other Important Information - The company recorded a non-cash impairment charge of $873 million due to ITC orders affecting Enjoy [22] - The total debt to EBITDA ratio as of March 31 was 2.1 times, in line with the target of approximately two times [23] Q&A Session Summary Question: Current state of the consumer and inflationary pressure - Management acknowledged that consumers are under pressure from cumulative inflation, impacting their purchasing decisions [30][31] Question: Confidence in pricing strategy for cigarettes - Management highlighted the strength of the Marlboro brand and the use of data analytics to manage pricing effectively [32][34] Question: Approach to the discount segment with the Basic brand - Management clarified that the repositioning of Basic is not a strategy shift but a response to market dynamics [36][38] Question: Growth trajectory of ON! brand and competition - Management expressed confidence in ON!'s growth, despite competitive pressures, and highlighted upcoming product innovations [39][41] Question: Strategy for e-cigarettes and market exit - Management emphasized the importance of participating in the e-vapor category and plans to address regulatory challenges [42][44] Question: Impact of tariffs on imports and consumer sentiment - Management noted that while tariffs may impact costs, the overall effect on consumer sentiment is still being assessed [68][70] Question: Future of synthetic nicotine products - Management indicated that synthetic nicotine is now on their radar, and they are exploring opportunities in this area [61][62] Question: Drivers behind decreased settlement payments - Management explained that the decrease in settlement payments is due to the expiration of the legal fund [63] Question: Long-term planning amidst tariff uncertainty - Management stated that they are monitoring the situation closely and have a robust supply chain strategy to manage costs [74][75]

Group 1 - The core point of the article highlights the continued success of the smokeless tobacco product Zyn, leading parent company Philip Morris International to exceed analyst expectations and raise earnings estimates for 2025 and beyond [1] - Smoking rates in the US and other developed markets are declining, which may contribute to the increased focus on smokeless tobacco products [1]

Core Viewpoint - British American Tobacco (BAT) is emerging from a challenging decade and is positioned to potentially outperform the market moving forward, despite the inherent risks associated with tobacco investments [1][2][3]. Company Performance - BAT has faced significant challenges over the past decade, including a tumultuous market environment and the consequences of a costly merger with Reynolds American, which resulted in a $31.5 billion non-cash write-down on its U.S. cigarette brands in late 2023 [3][10]. - The stock has shown a 43% increase over the past year, although it remains down 25% from a decade ago, indicating a potential shift in market sentiment towards a more favorable outlook for the company [11]. Revenue and Growth - BAT's new category products, including electronic cigarettes and heated tobacco, have seen organic, currency-neutral sales growth of 8.9% in 2024, contributing to 17.5% of total revenue [4]. - Management anticipates annualized currency-neutral revenue growth of 3% to 5% starting in 2026, which, while modest, represents a recovery path from previous declines [5]. Dividend and Cash Flow - The company offers a nearly 7% dividend yield, providing attractive short-term returns, especially during periods of market volatility [2][6]. - In 2024, BAT generated £7.9 billion in free cash flow and paid out £5.2 billion in dividends, resulting in a payout ratio of 66%, indicating a healthy cash flow position [8]. Valuation and Market Position - BAT's stock valuation has improved, currently trading at under 10 times 2025 earnings estimates, which is a significant recovery from a low of under 8 times earnings early last year [12]. - The company’s strategic focus on transitioning to smoke-free products positions it favorably against competitors, although it still trails Philip Morris International in this area [4][10].

Economic Environment - Economic uncertainty is currently heightened due to tariffs and associated price increases, potential inflation, prolonged job searches, and stock market volatility [1] Investment Focus - The primary interest remains in stocks, mutual funds, and ETFs for intermediate- to long-term investing and retirement purposes [1] - The individual has engaged in various investment vehicles including stocks, options, mutual funds, bonds, ETFs, commodities, futures, and forex since 2007 [1] Research and Writing - A strong interest in investment research and analysis has led to a career in freelance financial writing since 2010 [1] - Articles have been published on notable financial websites such as Investopedia, Google Finance, Yahoo Finance, and CBS MoneyWatch, among others [1]

Core Insights - Altria Group and Philip Morris International both produce and sell Marlboro cigarettes, but they operate in different markets, with Altria focusing on North America and Philip Morris on international markets [1][6][7] Company Performance - Altria's cigarette volumes fell by 10.2% in 2024, continuing a negative trend, while Philip Morris saw a 0.6% increase in cigarette volumes in 2025, indicating a more favorable business performance for Philip Morris [8] - Altria has made several strategic mistakes, including the spin-off of Philip Morris, which is now seen as a loss of its best business segment [9][11] Market Positioning - Tobacco companies are classified as consumer staples, but unlike necessities, tobacco products are based on personal preference, leading to scrutiny over health impacts [3][5] - Philip Morris has successfully shifted nearly 39% of its revenue and almost 40% of its gross profit to smoke-free products, positioning itself better for future growth compared to Altria, which still relies on cigarettes for nearly 90% of its revenue [11][12] Investment Considerations - Altria offers a high dividend yield of 6.9%, appealing to income investors, while Philip Morris has a lower yield of 3.1% but is considered a better long-term investment due to its stronger business performance [10][13][14] - For investors with a long-term perspective, Philip Morris is viewed as the more attractive option due to its better positioning and growth potential [14]

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Core Viewpoint - Philip Morris International has experienced significant stock price appreciation, with shares up nearly 40% in 2025 and over 75% in the past year, following strong earnings results [1][2] Group 1: Earnings Performance - In Q1, Zyn, a nicotine pouch product, saw U.S. shipment volumes increase by 53% to 202 million cans, with international volumes also rising 53% [4][3] - Overall oral product shipments grew by 27%, while traditional cigarette volumes rose by 1.1% to 144.8 billion units [8][7] - Organic revenue increased by 10% year over year to $9.3 billion, with adjusted earnings per share climbing 17% to $1.76 [8][9] Group 2: Growth Drivers - Zyn and heated tobacco units (HTUs), including the IQOS system, are key growth drivers, with HTUs volumes increasing nearly 12% to 37.1 billion units [7][6] - The company expects U.S. Zyn shipments to reach between 800 million and 840 million cans, up from a previous forecast of 780 million to 820 million cans [5][4] - The smoke-free business saw organic revenue surge by 20%, indicating strong demand for non-combustible products [9][10] Group 3: Future Outlook - Philip Morris has maintained its full-year outlook, with organic revenue growth projected between 6% to 8% and adjusted EPS expected to be between $7.01 and $7.14 [11][12] - The company is expanding its capacity in the U.S. for Zyn and testing IQOS in new markets, indicating ongoing growth opportunities [14][13] - The stock is considered undervalued with a forward P/E ratio of 23 and a PEG ratio under 0.4, suggesting potential for further appreciation [15][16]

Core Insights - The article highlights the performance of dividend-paying stocks during market downturns, emphasizing their stability and ability to outperform the S&P 500 in 2025 [1][2] Group 1: AT&T - AT&T is a major U.S. telecom provider with 72.7 million post-paid phone subscribers and 9.3 million fiber optic broadband customers as of the end of 2024 [3] - The stock has a low beta of 0.42, indicating less volatility during market downturns, and offers a dividend yield of 4.1%, which is sustainable as it represents only half of the company's earnings-per-share estimate for 2025 [4] Group 2: Philip Morris International - Philip Morris is the largest tobacco company globally, selling products in 180 countries, and has a beta of 0.44, making it a reliable investment during economic downturns [5] - The company has consistently paid and raised its dividend since 2008, currently yielding 3.2%, and smoke-free products now account for 40% of total sales, indicating a shift towards long-term growth [6] Group 3: The Coca-Cola Company - Coca-Cola is a well-established blue-chip dividend stock with a diverse portfolio of beverages and a low beta of 0.45, making it a stable investment choice [7][8] - The company has a dividend yield of 2.8% and a payout ratio of 69% of 2025 earnings estimates, with a strong track record of increasing dividends over six decades [9]