Altria Group, Inc. (MO), headquartered in Richmond, Virginia, and with a market cap of $96.4 billion, is a leading consumer goods player specializing in tobacco, nicotine, and innovative smoke-free products. Known for its commitment to providing adult consumers with a diverse portfolio of choices, Altria focuses on reducing harm through science-based innovation.
Companies with a market cap of $10 billion or more are classified as “large-cap stocks,” Altria Group exemplifies this category. As a leading consumer goods company, Altria focuses on developing and marketing innovative tobacco, nicotine, and smoke-free products to reduce harm and offer adult consumers a range of alternatives.
The tobacco company has fallen 2.7% from its 52-week high of $58.03, which it hit on Nov. 27. Shares of Altria are up 3.2% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) 15.5% gain during the same time frame.
In the long term, MO has gained 39.9% on a YTD basis and a 32.8% increase over the past 52 weeks. By comparison, the NASX has risen 31.5% in 2024 and 39.1% over the same period.
However, MO has traded above its 50-day moving average since late October and above its 200-day moving average since mid-April, indicating its bullish trend.
Altria Group has faced challenges from regulatory pressures, shifting consumer preferences toward smoke-free products, and rising costs, contributing to its underperformance relative to the broader sector. Despite these headwinds, the company delivered strong Q3 results on Oct. 31, driving a 7% gain in its stock. Revenue surged 18.6% year-over-year to $6.26 billion, beating estimates by 17.5%, while adjusted EPS of $1.38 exceeded consensus forecasts.
Altria maintained its full-year EPS guidance of $5.11, signaling confidence in its outlook. Notably, the gross margin improved to 75.5%, though the operating margin declined to 50.4%. The results underscore Altria’s resilience and ability to navigate a challenging landscape.
Altria Group has surpassed its competitor, British American Tobacco p.l.c.(BTI) delivering gains of 16.5% over the past 52 weeks and achieving 27% returns on a YTD basis.
Wall Street analysts maintain a cautious outlook on MO’s prospects. Of the ten analysts covering the stock, the consensus rating is “Hold,” with a mean price target of $52.50, suggesting the stock is currently trading at a premium.
