Altria Group, Inc. (MO), headquartered in Richmond, Virginia, and with a market cap of $96.4 billion, is a leading consumer goods player specializing in tobacco, nicotine, and innovative smoke-free products. Known for its commitment to providing adult consumers with a diverse portfolio of choices, Altria focuses on reducing harm through science-based innovation.
Companies with a market cap of $10 billion or more are classified as “large-cap stocks,” Altria Group exemplifies this category. As a leading consumer goods company, Altria focuses on developing and marketing innovative tobacco, nicotine, and smoke-free products to reduce harm and offer adult consumers a range of alternatives.
The tobacco company has fallen 2.7% from its 52-week high of $58.03, which it hit on Nov. 27. Shares of Altria are up 3.2% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) 15.5% gain during the same time frame.
In the long term, MO has gained 39.9% on a YTD basis and a 32.8% increase over the past 52 weeks. By comparison, the NASX has risen 31.5% in 2024 and 39.1% over the same period.
However, MO has traded above its 50-day moving average since late October and above its 200-day moving average since mid-April, indicating its bullish trend.
Altria Group has faced challenges from regulatory pressures, shifting consumer preferences toward smoke-free products, and rising costs, contributing to its underperformance relative to the broader sector. Despite these headwinds, the company delivered strong Q3 results on Oct. 31, driving a 7% gain in its stock. Revenue surged 18.6% year-over-year to $6.26 billion, beating estimates by 17.5%, while adjusted EPS of $1.38 exceeded consensus forecasts.
Altria maintained its full-year EPS guidance of $5.11, signaling confidence in its outlook. Notably, the gross margin improved to 75.5%, though the operating margin declined to 50.4%. The results underscore Altria’s resilience and ability to navigate a challenging landscape.
Altria Group has surpassed its competitor, British American Tobacco p.l.c.(BTI) delivering gains of 16.5% over the past 52 weeks and achieving 27% returns on a YTD basis.
Wall Street analysts maintain a cautious outlook on MO’s prospects. Of the ten analysts covering the stock, the consensus rating is “Hold,” with a mean price target of $52.50, suggesting the stock is currently trading at a premium.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- 1 Overlooked Semiconductor Stock Hedge Funds Are Buying
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