The Market Is Undeterred By Altria Group’s Slow Motion Train Wreck

Summary:

  • Altria Group, Inc.’s shares have surged by 15.3% since April, outperforming the S&P 500.
  • Second-quarter financial results showed a decline in revenue and adjusted earnings, with market share erosion continuing.
  • Bright spots included growth in NJOY vaping technology and on! nicotine pouches, but overall weakness persists.

Cigarettes in ashtray, flat layout photo

prchaec

Things have been going quite well for shareholders of tobacco giant Altria Group, Inc. (NYSE:MO). Since I last rated the company a “hold” back in late April of this year, shares have skyrocketed by 15.3%. That’s almost double the

Company Price / Earnings Price / Operating Cash Flow EV / EBITDA
Altria Group 9.5 9.8 8.9
British American Tobacco (BTI) 6.3 5.2 10.1
Japan Tobacco (OTCPK:JAPAY) 15.1 12.8 8.3
Imperial Brands (OTCQX:IMBBY) 9.5 6.4 6.1
Vector Group (VGR) 11.1 9.9 8.1
Philip Morris International (PM) 20.5 15.5 14.9


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.


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