Richmond, Virginia-based Altria Group, Inc. (MO) manufactures and sells smokeable and oral tobacco products. It is valued at a market cap of $116.6 billion.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and MO fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the tobacco industry. The company’s key strengths lie in its flagship Marlboro brand, strong pricing power, and consistent cash flow generation.
This tobacco giant has touched its 52-week high of $70.51 in the last trading session and is currently trading 1.1% below it. Shares of MO have surged 19.1% over the past three months, considerably outperforming the Nasdaq Composite’s ($NASX) 2.2% drop during the same time frame.
Moreover, on a YTD basis, shares of MO are up 21.2%, compared to NASX’s 2.5% loss. In the longer term, MO has surged 26.9% over the past 52 weeks, outpacing NASX’s 22.2% gain over the same period.
To confirm its bullish trend, MO has been trading above its 200-day and 50-day moving averages since mid-January, with slight fluctuations.
On Jan. 29, shares of MO plunged 5.3% after reporting mixed Q4 results. The company’s net revenue declined 2.1% year-over-year to $5.8 billion, but topped analyst estimates. However, its adjusted EPS of $1.30 remained unchanged from the year-ago quarter due to a lower adjusted tax rate and fewer shares outstanding, but missed consensus estimates of $1.32.
MO has also outperformed its rival, Philip Morris International Inc. (PM), which surged 22.7% over the past 52 weeks and 17.8% on a YTD basis.
Looking at MO’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 14 analysts covering it. While the company is trading above its mean price target of $63.64, its Street-high price target of $72 suggests a 3% premium to its current price levels.
