Altria: I Couldn’t Have Been More Wrong About This Stock (Rating Upgrade)

Summary:

• I went from recommending Altria as a Sell last to now being a Strong Buy, with strong assumptions for its future revenue and earnings.
• Altria has a margin of safety and its upside has not yet been priced in by the market as its gains follow its EPS linearly.
• I’m confident that Altria’s top-line erosion can be curtailed and that it will swing into positive territory by the middle of next year.

They say that investing is a journey. Just over a year ago, I recommended readers to sell Altria (NYSE:MO), but now I have changed my opinion entirely. This shift was based on the company’s unexpected resilience, competitive positioning, and what

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.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.