Altria: A Prime Pick For Value Seekers

Summary:

  • Altria Group, Inc.’s strong financial performance, new product traction, and compelling valuation support a “Strong Buy” rating, with a safe 7.6% forward dividend yield.
  • Recent earnings showed positive revenue and EPS surprises, with NJOY and on! nicotine pouches demonstrating significant growth and consumer satisfaction.
  • The “Optimize & Accelerate” initiative aims to streamline operations and achieve $600 million in cost savings, reinforcing Altria’s robust fundamentals.
  • Despite Wall Street’s cautious stance, Altria remains attractively valued with substantial upside potential, even under conservative discount rate assumptions.

Marlboro logo on a local tobacco shop in Dortmund. Marlboro is american brand of tobacoc and cigarettes part of Altria and Philip Morris International.

BalkansCat

Investment thesis

My previous bullish thesis about Altria Group, Inc. (NYSE:MO) aged well as the stock delivered a 9% total return since early August, outpacing the broader U.S. equity market. Recent developments are quite positive for Altria’s investors, and that


Analyst’s Disclosure: I/we have a beneficial long position in the shares of MO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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