Altria stock surges on earnings rise and improved operating margin

From Nasdaq: 2024-11-25 00:32:18

Altria’s stock price has surged 15% in a month, reaching a 50% increase since early 2022. This growth is attributed to a 9% rise in adjusted earnings and a 37% increase in the P/E ratio. The company’s revenue has declined 4% due to a drop in cigarette volume, but its operating margin has improved to 56.4%.

Investors are rewarding Altria for offsetting cigarette volume declines with pricing gains and growth in oral tobacco products. The company’s decision to reduce its stake in Anheuser-Busch InBev and buy back shares has also been well received. However, the stock seems fully priced with a valuation estimate of $48 per share.

Altria’s performance has been less volatile than the S&P 500, with returns of 24% in 2021, 4% in 2022, -4% in 2023, and 48% in 2024. The company’s High Quality Portfolio has consistently outperformed the S&P 500. However, risks such as tariffs, deportations, and low taxes could impact Altria’s performance in the future.



Read more at Nasdaq: What’s Driving Altria Stock Higher?