Group 1: Coca-Cola - Coca-Cola is the world's largest beverage company, diversifying its portfolio to include bottled water, fruit juices, teas, sports drinks, energy drinks, coffee, and non-carbonated drinks to counter declining soda consumption [2][4] - The company operates a capital-light business model, selling concentrates and syrups while independent bottling partners handle production, allowing for stable margins and strong cash flow to support a forward yield of 2.6% [3][4] - Coca-Cola's organic revenue rose 5% in 2025, with expectations of 4%-5% growth in 2026, and it is currently valued at 25 times forward earnings, making it a reliable investment in a volatile market [4] Group 2: Altria - Altria, the largest tobacco company in America, faces challenges from declining U.S. smoking rates but mitigates this by raising prices, cutting costs, and repurchasing shares to enhance EPS and support dividends [5][7] - The company is shifting towards smoke-free products, aiming for at least $5 billion in smoke-free revenues by 2028, bolstered by its acquisition of e-cigarette leader NJOY in 2023 [6][7] - Altria offers a forward yield of 6.3% and has raised its dividend 60 times over the past 56 years, with adjusted EPS growth of 4% in 2025 and anticipated growth of 2.5%-5.5% in 2026, trading at 12 times forward earnings [7]

Core Insights - Altria Group, Inc. is expected to report its fourth-quarter 2025 earnings on January 29, with revenues projected at $5 billion, reflecting a 2% decline year-over-year, while earnings per share (EPS) is estimated at $1.31, indicating a 1.6% growth from the previous year [1][9] Earnings Performance - Altria has a trailing four-quarter average earnings surprise of 3.1%, with the last quarter's earnings surpassing the Zacks Consensus Estimate by 0.7% [2] - The company currently has an Earnings ESP of +1.54% and a Zacks Rank of 3 (Hold), suggesting a favorable outlook for an earnings beat [4][3] Factors Influencing Q4 Earnings - The fourth-quarter performance is likely influenced by disciplined pricing and effective cost control, despite pressure on domestic cigarette shipment volumes due to inflation [5] - Altria has maintained steady profitability through solid revenue management and disciplined cost control, with pricing gains across core smokeable brands cushioning operating income [6] Oral Tobacco Business - A significant contributor to Altria's earnings is its oral tobacco business, particularly nicotine pouches, which have aided segment profitability despite competitive pressures [7] Stock Performance - Over the past three months, Altria's stock has gained 0.6%, underperforming the Zacks Tobacco industry's 12.1% increase and the Consumer Staples sector's 3.7% growth [8] - Compared to peers, Altria's stock performance has lagged, with competitors like Philip Morris and British American Tobacco showing higher gains [8] Valuation - Altria's shares are trading at a forward 12-month price-to-earnings ratio of 11.39, below the industry average of 15.48, indicating compelling value for investors [10] - The valuation gap is notable when compared to key competitors, which have significantly higher P/E ratios [11] Investment Outlook - Altria demonstrates resilience through effective pricing strategies and cost management, offsetting volume pressures in its core cigarette business [12] - The expanding smoke-free portfolio, particularly nicotine pouches, is a key driver for margin support and earnings stability, making Altria an appealing defensive consumer staples stock [12]

Core Viewpoint - Coca-Cola is positioned to be a more compelling long-term investment compared to Altria, the leading tobacco company, due to its diversified product portfolio and growth potential in a changing market landscape [5]. Group 1: Altria Overview - Altria is a leading tobacco company in America, known for its flagship Marlboro brand, which holds nearly half of the retail cigarette market [2]. - The company is expanding its portfolio with smoke-free products like e-cigarettes and nicotine pouches as adult smoking rates decline [2]. - Altria has consistently increased its dividend since spinning off its international business in 2008, currently offering a forward yield of 7.2% and trading at ten times forward earnings [3]. Group 2: Coca-Cola Overview - Coca-Cola has developed a diverse range of products beyond its traditional sugary sodas, including bottled water, fruit juices, teas, and alcoholic beverages, which has helped mitigate the decline in soda consumption [8]. - The company reported organic sales growth of 16% in 2022, 12% in 2023, and is projected to maintain 12% growth in 2024, contrasting with Altria's declining sales [9]. - Coca-Cola operates a capital-light business model, producing only concentrates and syrups, which allows for high gross margins and more cash for marketing and dividends [10]. Group 3: Financial Performance and Outlook - Analysts expect Coca-Cola's adjusted EPS to grow at a CAGR of 6% from 2024 to 2027, while Altria's adjusted EPS is expected to grow at a CAGR of 4% [12]. - Coca-Cola has a forward dividend yield of 2.9% and has raised its payout for 63 consecutive years, making it a "Dividend King" [13]. - Over the past decade, Coca-Cola has delivered a total return of 126%, while Altria's total return was 99%, indicating Coca-Cola's stronger long-term performance [14]. Group 4: Market Trends and Future Prospects - The S&P 500 is near its all-time high, and the Federal Reserve is expected to cut benchmark rates in 2026, which may lead investors to favor dividend stocks like Coca-Cola over growth stocks [16]. - Coca-Cola is anticipated to benefit from this trend, positioning it as a better investment option compared to Altria for 2026 and beyond [16].

Core Viewpoint - Altria Group, Inc. (NYSE:MO) is recognized for its strong long-term performance in the stock market, despite the analyst's personal aversion to tobacco stocks [1][2]. Company Overview - Altria Group, Inc. produces and sells a variety of tobacco and nicotine products, including cigarettes, cigars, smokeless tobacco, nicotine pouches, and e-vapor products [2]. Investment Perspective - The stock has shown superior returns compared to many others, as noted during the analysis for "How to Make Money in Any Market" [1][2]. - Despite acknowledging Altria's investment potential, the analyst expresses a preference for other stocks, particularly in the AI sector, which are believed to offer greater upside potential and less downside risk [2].

Group 1 - Altria is recognized as a top stock for investors seeking high yield while protecting capital, particularly due to its focus on the U.S. market since its 2008 spinoff from Philip Morris International [1] - The company is transitioning from traditional cigarettes to smoke-free products, including vapes and nicotine pouches, indicating a strategic pivot in its product offerings [1] - Altria's stock has shown improved price performance, earning upgrades in its Relative Strength Rating, reflecting positive market sentiment [3] Group 2 - Altria's stock offers a dividend yield of 7.1%, positioning it as a competitive option among high-yield stocks [3] - The company has successfully mitigated tariff risks associated with its products, enhancing its market stability [3] - Altria has joined an elite group of stocks with Relative Strength Ratings over 90, showcasing its strong market performance [3]

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].

Market Trend - Nicotine pouches have paved the way for THC-infused pouches to become the next big trend in cannabis [1] Company Insight - Cannadips cofounder Case Mandel believes in the potential of THC-infused pouches [1]

Market Trends - Nicotine pouches have paved the way for THC-infused pouches to become the next big trend in cannabis [1] Company Strategy - Cannadips cofounder Case Mandel believes in the potential of THC-infused pouches [1]

Core Insights - ALP has partnered with Gopuff to introduce an instant delivery feature for its nicotine pouches, enhancing customer accessibility and experience [1][3] - The new service allows customers to order ALP products through Alppouch.com and receive them almost instantly, utilizing Gopuff's extensive network of over 200 micro distribution centers across the U.S. [2][3] - This partnership marks a significant innovation in the nicotine pouch market, focusing on a customer-centric approach and leveraging Gopuff's advanced technology [3] Company Overview - ALP Supply Co. LLC specializes in the sale, marketing, and distribution of nicotine pouches in the United States, co-owned by Turning Point Brands and Tucker Carlson Network [6] - Gopuff, founded in 2013, is a leader in instant commerce, providing a wide range of products delivered to customers' doors in as fast as 15 minutes, supported by a robust logistics network [5]

Core Viewpoint - The article emphasizes the resilience of Philip Morris International, S&P Global, and Walmart as investment options amidst market volatility and tariff concerns, suggesting that investors should focus on dividend growth stocks that are insulated from economic downturns [1][2]. Philip Morris International - Philip Morris International (PMI) was spun off from Altria in 2008, allowing it to focus on its overseas business while Altria dealt with domestic challenges [3]. - From 2008 to 2024, PMI's adjusted earnings per share (EPS) grew at a compound annual rate of 4.4%, driven by price increases and cost-cutting measures, alongside a shift towards smoke-free products [4]. - PMI has consistently raised its dividend since the split, currently offering a forward yield of 3.6% with a trailing payout ratio of 88%, indicating potential for future increases [5]. - Analysts project adjusted EPS growth of 9% in 2025 and 10% in 2026, with a reasonable valuation at 21 times forward earnings [5]. S&P Global - S&P Global provides essential financial data and analytics services to approximately 80% of Fortune 500 companies, utilizing AI-driven tools to enhance its offerings [6]. - The company is insulated from tariffs as it offers services rather than physical goods, making its services more valuable in turbulent markets [7]. - Despite a temporary slowdown in its credit ratings business due to high interest rates, S&P Global is expected to recover as rates decline [7]. - The company has a forward yield of 0.9% and has raised its dividend for 52 consecutive years, with a low trailing payout ratio of 29% [8]. - Analysts anticipate EPS growth of 9% in 2025 and 12% in 2026, with a forward price-to-earnings ratio of 26, indicating it is not overly expensive [8]. Walmart - Walmart serves 270 million customers weekly across 10,750 stores and online marketplaces in 19 countries, providing it with significant scale to mitigate tariff impacts [9]. - Many of Walmart's suppliers pre-shipped products to the U.S. before tariffs were implemented, and the company can negotiate lower prices or adjust retail prices to manage costs [10]. - Walmart has a forward yield of 1.1% and has raised its dividend for 52 consecutive years, maintaining a low payout ratio of 34% [11]. - Analysts expect adjusted EPS growth of 5% in fiscal 2026 and 12% in fiscal 2027, with a forward price-to-earnings ratio of 31, suggesting that its core strengths may justify the higher valuation [11].