Latest news with #Altria
Yahoo
19 hours ago
- Business
- Yahoo
The FDA Just Approved Juul's E-Cigarettes. Does That Make Altria Stock a Buy Here?
Following a prolonged and high-stakes legal battle, the U.S. Food and Drug Administration (FDA) granted Juul marketing approval for its e-cigarettes. For Altria (MO), a tobacco giant and an early investor in Juul, this is an interesting development. While this is a positive on the regulatory front for the wider e-cigarette industry in general and the company's own NJOY brand, it also raises competitive pressure for Altria in the vaping market as it no longer holds a position in Juul. Investors should note that at the end of March, Altria also announced that it would halt sales of its NJOY e-cigarettes in the U.S. due to a patent infringement ruling in favor of Juul. More News from Barchart Opendoor Stock Is Surging Higher in a Frenzied Retail Rally. How Should You Play OPEN Shares Here? This Penny Stock Wants to Become the MicroStrategy of Dogecoin Robinhood Stock Stumbles as S&P 500 Inclusion Is Once Again Off the Table for HOOD Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! About Altria Altria is one of the most popular tobacco companies in the world with iconic brand such as Marlboro, Copenhagen, Skoal, and Black & Mild in its portfolio. Its diversified presence also includes smokeless products, cigars, and nicotine alternatives such as the aforementioned NJOY. MO stock is up 13.4% on a YTD basis, with the company boasting a market cap of $99 billion. Tobacco stocks are known for having high dividend yields, but Altria's is especially high at 6.9%. Moreover, the company is a 'Dividend King,' having increased dividends consecutively over the past 54 years. So, how should one play MO stock now? Let's have a closer look. Boring But Steady Financials When it comes to Altria's numbers, they are nothing extraordinary. In fact, they are quite boring, marked by not much growth. Over the past 10 years, the company's revenue and earnings have reported CAGRs of just -0.4% and 8%, respectively. Following this trend, the first quarter was a mixed bag for the company. While net revenues of $5.5 billion denoted a yearly decline of 5.7%, adjusted earnings went up by 6% in the same period to $1.23. A decline of 13.3% seen in shipments of its flagship Marlboro cigarettes was a primary reason for the overall decline in sales. Meanwhile, while volumes for NJOY consumables increased by 23.9% from the previous year to 13.5 million units, NJOY devices witnessed a significant 70% decline in reported shipments. Overall, its retail share of consumables increased to 6.6%. Altria closed the quarter with a cash balance of $4.73 billion. This was above its short-term debt levels of $2.6 billion. For 2025, the company expects its earnings to be in the range of $5.30 to $5.45 per share, the midpoint of which would represent growth of 5% from 2024. Altria's Tailwinds and Headwinds One growth product for Altria is its On! nicotine pouch brand, which has been gaining ground, and could take the lead in place of NJOY in its alternative portfolio. The company grew the market share of its On! pouches to 8.8%, up from 7% in the year-ago period. Sales volumes also grew to 39.3 million cans, a jump of 18% from a year ago. Notably, the company sees potential for further expansion, especially with new flavors planned and the possibility of launching On! PLUS in the U.S., a variant currently sold in select European markets. Further, despite shifting industry trends, Altria's cigarette business remains strong. Marlboro still holds nearly 46% of the U.S. cigarette market, maintaining its dominance. Additionally, the Black & Mild brand also continues to perform well in the machine-made cigar category. Meanwhile, on the heated tobacco front, often referred to as HTC, Altria is exploring two new products: Ploom and SWIC. Both are marketed as reduced-risk alternatives. Ploom, a product developed with Japan Tobacco, is awaiting FDA authorization before a potential U.S. debut. While timelines aren't certain, Altria seems optimistic. The other option, SWIC, features a capsule-style heated tobacco system and might appeal to smokers who haven't transitioned to vape products but are still looking for non-combustible alternatives. That said, not all bets have worked out. The $12.8 billion investment in Juul Labs failed to pan out, and Altria eventually abandoned that stake. Perhaps even more problematic was losing the right to sell IQOS in the U.S., a product many had viewed as a cornerstone of its reduced-risk portfolio. Though On! is gaining, the broader picture in oral tobacco tells a different story. Altria's overall share in the segment slipped from 37.8% to 34.7% year-over-year. Meanwhile, the NJOY ACE platform is in limbo. The U.S. International Trade Commission issued cease-and-desist and exclusion orders, preventing Altria from importing or selling it domestically for now. This followed a ruling that NJOY ACE had infringed on four Juul Labs patents. Altria could try modifying the device to bypass those patents, but that approach may be risky. Any major redesign would likely trigger a fresh FDA application, and the approval process is neither quick nor guaranteed. Analyst Opinions on MO Stock Thus, analysts have deemed MO stock to be a 'Hold' with a mean target price of $57.73, which has already been surpassed. However, the high target price of $65 denotes an upside potential of about 8% from current levels. Out of 14 analysts covering the stock, four have a 'Strong Buy' rating, eight have a 'Hold' rating, one has a 'Moderate Sell' rating, and one has a 'Strong Sell' rating. On the date of publication, Pathikrit Bose did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Why the Smartest Investors Are Buying Philip Morris International Stock and Not Altria
Key Points In some ways, Altria and Philip Morris International are tied at the hip. The two tobacco businesses couldn't be more different in some key ways. Smart investors are avoiding one of these companies but love the other. 10 stocks we like better than Altria Group › Altria (NYSE: MO) is an iconic consumer staples maker that has shifted and changed over the years. Today it is largely a tobacco stock, though it has investments in a beverage maker. Philip Morris International (NYSE: PM) shares some of the storied history of Altria, but the smartest investors know that its business is better. How are Altria and Philip Morris related? Altria's most important cigarette brand is Marlboro. Marlboro has a huge 41% market share in the North American market. Add in the company's other, much smaller, brands, and Altria's market share rises to around 45%. Marlboro is also one of Philip Morris International's most important cigarette brands. The reason for this is that Altria spun off its international operations to create Philip Morris International. So Altria controls the brands in North America and Philip Morris controls them everywhere else. This is an important distinction for any investor considering buying a tobacco stock. And it is one of the reasons why Philip Morris is performing better as a stock and business than Altria. What's going on with Altria? In the first quarter of 2025, Altria's cigarette volume fell 13.7%, continuing a long downward trend. Marlboro lost a percentage point of market share, with other brands doing even worse. Despite being a consumer staples giant, with a product that tends to have huge brand loyalty, the industry trends in the U.S. market are taking a huge toll on Altria's business. Altria knows it has a problem and has been trying to find a solution. Only it has made a number of large missteps, costing investors billions of dollars in write-downs. Altria simply isn't executing very well as it works through what is likely to be an increasingly challenging market environment. Philip Morris, on the other hand, is executing very well. The foreign markets it serves appear to be less challenged, noting that cigarette volumes actually increased in the first quarter of 2025. That helped lead to a modest 0.4-percentage-point market share gain for the company. Thus, Philip Morris' foundation is stronger. That said, the real standout for Philip Morris is the growth of its non-cigarette operations. In the first quarter, the company's smoke-free business generated 42% of its revenue and 44% of its profits. Some of its strongest non-cigarette businesses are vapes and pouches. Its pouches compete in the U.S. market, meaning Philip Morris is now a competitor to its former owner. And one that appears to be running rings around Altria as that company struggles to move beyond cigarettes. Philip Morris is in a much better position Investors who buy Altria are betting the tobacco giant can change with the times and find non-cigarette businesses to replace its slowly declining core. Or, to put it another way, if you buy Altria today you are hoping it can achieve the same success as Philip Morris. Most investors will probably be better off avoiding the risk that Altria keeps stumbling and just buying the better-performing tobacco company. Should you buy stock in Altria Group right now? Before you buy stock in Altria Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Altria Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,415!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Philip Morris International. The Motley Fool has a disclosure policy. Why the Smartest Investors Are Buying Philip Morris International Stock and Not Altria was originally published by The Motley Fool
Globe and Mail
7 days ago
- Business
- Globe and Mail
Altria to Host Webcast of 2025 Second-Quarter and First-Half Results
Altria Group, Inc. (Altria) (NYSE: MO) will host a live audio webcast on Wednesday, July 30, 2025, at 9:00 a.m. Eastern Time to discuss its 2025 second-quarter and first-half business results. Altria will issue a press release containing its business results at approximately 7:00 a.m. Eastern Time the same day. The webcast can be accessed at During the webcast, Billy Gifford, Altria's Chief Executive Officer, and Sal Mancuso, Altria's Chief Financial Officer, will discuss the Company's 2025 second-quarter and first-half business results and answer questions from the investment community and news media. The webcast will be in a listen-only mode. Pre-event registration is necessary; directions are posted at An archived copy of the webcast will be available on
Business Wire
16-07-2025
- Business
- Business Wire
Altria to Host Webcast of 2025 Second-Quarter and First-Half Results
RICHMOND, Va.--(BUSINESS WIRE)--Altria Group, Inc. (Altria) (NYSE: MO) will host a live audio webcast on Wednesday, July 30, 2025, at 9:00 a.m. Eastern Time to discuss its 2025 second-quarter and first-half business results. Altria will issue a press release containing its business results at approximately 7:00 a.m. Eastern Time the same day. The webcast can be accessed at During the webcast, Billy Gifford, Altria's Chief Executive Officer, and Sal Mancuso, Altria's Chief Financial Officer, will discuss the Company's 2025 second-quarter and first-half business results and answer questions from the investment community and news media. The webcast will be in a listen-only mode. Pre-event registration is necessary; directions are posted at An archived copy of the webcast will be available on
Yahoo
13-07-2025
- Business
- Yahoo
Best Stock to Buy Right Now: Constellation Brands vs. Altria
Constellation is grappling with tariffs and weak demand. Altria is dealing with declining smoking rates. One of these blue chip giants has a brighter future. 10 stocks we like better than Constellation Brands › Constellation Brands (NYSE: STZ) and Altria (NYSE: MO) are both often considered stable blue chip stocks for income investors. Constellation is one of the world's largest producers of beers, wines, and spirits, while Altria is the largest tobacco company in America. Over the past three years, however, Constellation's stock stumbled nearly 30% as Altria's stock rallied more than 40%. Let's see why the tobacco maker outperformed the alcoholic drink maker by such a wide margin -- and if it will remain the better investment for the foreseeable future. Constellation generates most of its revenue from its beer business, which sells popular brands like Modelo, Corona, and Pacifico. A smaller percentage comes from its wine portfolio, which includes Kim Crawford, Robert Mondavi, and The Prisoner, and its spirits business, which sells Casa Noble Tequila, Svedka Vodka, and High West Whiskey. It generates nearly all of its revenue in the United States. Constellation faces three major challenges. First, its younger consumers are drinking less beer. To cope with that slowdown, Constellation is launching new types of alcoholic beverages (like hard seltzer) and alcohol-free drinks. Second, its sales of lower-end wines are declining. To offset that pressure, it divested its cheaper brands and focused on strengthening its premium brands. Lastly, the Trump administration's tariffs are driving up the costs of importing its best-selling Mexican beers. The company can offset some of that pressure by shipping more of its beers in glass bottles instead of aluminum cans (which are exposed to those higher tariffs), but an estimated 39% of its beer shipments from Mexico are still delivered in cans. It also faces production bottlenecks at its Mexican plants. Therefore, Constellation's top-line growth is being throttled by the divestments in its wine and spirits division and its softening beer sales. At the same time, the unpredictable tariffs, inflationary headwinds, and capacity constraints will continue to compress its margins. From 2024 to 2027, analysts expect Constellation's revenue to decline from $10.2 billion to $9.9 billion as it continues to right-size its business. Its earnings per share (EPS) is expected to grow at a compound annual growth rate (CAGR) of 7%. Its business certainly isn't collapsing, but its near-term headwinds and a lack of catalysts are making it an unappealing investment. The company's stock looks cheap at 14 times forward earnings, and it pays a decent forward yield of 2.5%, but its upside potential could remain limited. Altria generates most of its revenue from its flagship Marlboro cigarettes but also sells other cigarette brands, cigars, and smokeless products like e-cigarettes, snus, and nicotine pouches. It spun off its international business as Philip Morris International in 2008 and now generates nearly all of its revenue from the U.S. market. Altria's domestic concentration can be a double-edged sword. On one hand, it's well-protected from tariffs and foreign-exchange headwinds. On the other hand, adult smoking rates in the U.S. have steadily declined over the past six decades. The company counters that pressure by raising its cigarette prices to offset its declining shipments, cutting costs, and buying back a lot of shares to boost its EPS. It's also aggressively expanding its portfolio of smokeless products (especially e-cigarettes and nicotine pouches) through investments and acquisitions to curb its long-term dependence on cigarettes. In 2022, Altria's $12.8 billion investment in the e-cigarette maker Juul backfired as the Food and Drug Administration (FDA) banned all of its products. But after that big write down, it acquired Njoy, which sells FDA-approved e-cigarettes, for $2.8 billion in 2023. It expects that acquisition to start boosting EPS in 2026. From 2024 to 2027, analysts expect Altria's revenue (net of excise taxes) to dip from $20.4 billion to $20.2 billion as its core cigarette business continues to shrink. They expect its EPS to decline this year as it laps some big one-time tax benefits and the sale of its rights to Philip Morris International's Iqos heated tobacco products. But from 2025 to 2027, Altria's EPS is expected to have a steady CAGR of 5%. Its stock still looks cheap at 12 times forward earnings, and it pays a hefty forward yield of nearly 7%. Altria is a slow-growth stock, but it arguably doesn't face as many pressing issues as Constellation Brands. Constellation's business might stabilize over the next few years, but there aren't enough compelling reasons to buy its stock. Altria also faces some long-term challenges, but its business seems more stable, it pays a bigger dividend, and trades at a lower multiple. Those strengths all make Altria the better stock to buy right now. Before you buy stock in Constellation Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Constellation Brands wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,432!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,854!* Now, it's worth noting Stock Advisor's total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Leo Sun has positions in Altria Group. The Motley Fool recommends Constellation Brands and Philip Morris International. The Motley Fool has a disclosure policy. Best Stock to Buy Right Now: Constellation Brands vs. Altria was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
