Tobacco giant Altria Group’s (NYSE:MO) shares inched up on Wednesday after six consecutive sessions of fall. The stock was up 1.57% to $59.05 during afternoon trading.
The Marlboro maker’s shares lost nearly 3% in the preceding six sessions. However, on a year-to-date basis, they have gained 12.49%, outpacing the broader market which rose by 5.38%.
Looking at Seeking Alpha’s quant rating, MO has a Hold rating with a score of 3.41 out of 5. The company has been graded A+ for profitability but is dragged down by a D- grade for growth. Wall Street analysts also echo similar sentiments and have issued a Hold call for the stock.
However, Seeking Alpha analysts have issued a Buy call for Altria with 10 analysts rating it Buy and above. Two analysts suggest Hold while 1 recommends Sell.
Seeking Alpha analyst Kody’s Dividends maintained their Buy rating on the stock on the back of new product launches targeting the non-nicotine market and S&P’s recent credit rating upgrade to BBB+ for the firm.
“Altria remains a reliable income stock. I still think that the company’s risks are balanced out by the growth opportunities that its distribution power affords it. Altria’s credit rating upgrade by S&P on a stable outlook is a bonus,” the analyst said.
However, GP Sigma Analytics recommended to Sell the stock calling it a “value trap”. They argued that Altria’s misleading valuation and risks to dividend sustainability make it an unattractive investment.
“When looking in the longer term, I view a company that is caught between a rock and a hard place. Their main business is structurally on the decline, their efforts at diversification have been costly failures, and they are rapidly out of options,” they added.