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Best Stock to Buy Right Now: Constellation Brands vs. Altria
The Motley Fool· 2025-07-12 08:25
Core Viewpoint - Constellation Brands and Altria are both considered stable blue chip stocks, but Altria has outperformed Constellation significantly over the past three years, raising questions about future investment potential [1][2]. Constellation Brands - Constellation Brands generates most of its revenue from its beer business, with popular brands like Modelo and Corona, and a smaller portion from wine and spirits [4]. - The company faces three major challenges: declining beer consumption among younger consumers, decreasing sales of lower-end wines, and increased costs due to tariffs on imported Mexican beers [5][6]. - Analysts expect Constellation's revenue to decline from $10.2 billion in 2024 to $9.9 billion in 2027, while its earnings per share (EPS) is projected to grow at a compound annual growth rate (CAGR) of 7% [8]. - Despite a low valuation at 14 times forward earnings and a forward yield of 2.5%, the lack of near-term catalysts makes it an unappealing investment [9]. Altria - Altria primarily generates revenue from its Marlboro cigarettes and has a strong domestic focus, which protects it from tariffs and foreign-exchange issues [10][11]. - The company has been countering declining smoking rates by raising cigarette prices, cutting costs, and expanding its smokeless product portfolio through investments and acquisitions [12]. - Following a setback with its investment in Juul, Altria acquired Njoy for $2.8 billion in 2023, which is expected to boost EPS starting in 2026 [13]. - Analysts predict Altria's revenue will dip slightly from $20.4 billion in 2024 to $20.2 billion in 2027, but its EPS is expected to grow at a steady CAGR of 5% from 2025 to 2027 [14][15]. - Altria's stock is considered cheap at 12 times forward earnings, with a substantial forward yield of nearly 7%, making it a more stable investment compared to Constellation [15]. Investment Recommendation - Altria is viewed as the better investment option due to its more stable business model, larger dividend, and lower valuation multiple compared to Constellation Brands [16].
Will Altria (MO) Beat Estimates Again in Its Next Earnings Report?
ZACKS· 2025-07-10 17:11
Core Insights - Altria (MO) is positioned to potentially continue its earnings-beat streak in the upcoming report, having a history of beating earnings estimates, particularly in the last two quarters with an average surprise of 3.35% [1][2] Earnings Performance - For the last reported quarter, Altria achieved earnings of $1.23 per share, surpassing the Zacks Consensus Estimate of $1.17 per share, resulting in a surprise of 5.13% [2] - In the previous quarter, Altria was expected to post earnings of $1.27 per share but delivered $1.29 per share, yielding a surprise of 1.57% [2] Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Altria, with a positive Zacks Earnings ESP (Expected Surprise Prediction), indicating a strong likelihood of an earnings beat [5] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time [6] Current Earnings ESP and Outlook - Altria currently has an Earnings ESP of +0.42%, suggesting analysts are optimistic about its near-term earnings potential [8] - Combined with a Zacks Rank of 2 (Buy), this indicates a strong possibility of another earnings beat in the upcoming report, expected on July 30, 2025 [8]
Is Altria's Ultra-High Dividend Yield Worth the Risk?
The Motley Fool· 2025-07-03 08:19
Group 1: Company Overview - Altria's primary business involves selling nicotine products, with cigarettes constituting the majority of its revenue [2] - The company operates within the consumer staples sector, which typically includes products with consistent demand [2] Group 2: Financial Performance - Altria experienced a 13.7% year-over-year decline in cigarette volumes in the first quarter of 2025, indicating a continuing downward trend [4] - The company took a $900 million write-down in the first quarter to reduce the carrying value of its investment in NJOY due to a patent lawsuit [6] Group 3: Strategic Challenges - Altria has made multiple attempts to find alternative products to replace cigarettes, but these efforts have resulted in significant financial losses [5][9] - The company previously invested heavily in Juul and Cronos, both of which led to multi-billion-dollar write-downs and ultimately failed to deliver expected returns [8][9] Group 4: Investment Outlook - Despite a high dividend yield of 6.9%, the underlying business struggles raise concerns about the sustainability of this yield [1][10] - The lack of successful product replacements and ongoing challenges suggest that most investors may find the risk associated with Altria's stock to be unworthy [10]
RLX Technology: A Rebounding Vape Giant With Global Ambitions And Undervalued Growth
Seeking Alpha· 2025-06-27 18:03
Company Overview - RLX Technology (NYSE: RLX) has recently reported a significant increase in revenues and profitability, indicating a potential recovery in its business performance [1] - The company was previously a leading player in the China e-cigarette market but faced a downturn due to stringent local regulations that impacted the industry [1] Financial Performance - The recent earnings report highlighted a remarkable boost in both revenues and profitability, suggesting a turnaround for RLX Technology [1] Market Context - The e-cigarette industry in China has been under pressure from regulatory challenges, which previously led to a collapse of several companies, including RLX Technology [1]
22nd Century Announces Operation 100 – A 100mm VLN® Cigarette Designed to Reach Even More Adult Smokers Who Want to Reduce Their Nicotine Consumption
GlobeNewswire News Room· 2025-06-26 12:00
100mm Cigarettes Comprise Approximately Half the U.S. Market, Giving Even More Smokers a Familiar Choice as They Seek Ways to Change Their Smoking Behavior First FDA Submission Planned for Q4 2025 MOCKSVILLE, N.C.,, June 26, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), the only tobacco products company that is leading the fight against nicotine by offering smokers a choice about their nicotine consumption, today announced the advancement of a 100mm VLN® reduced nicotine content cigarett ...
