Cigarette & Tobacco Stocks Decline, Led by Turning Point Brands Down 3.9%
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
- Market Underperformance: Cigarette and tobacco stocks collectively fell by approximately 2.6%, with Turning Point Brands down 3.9% and Altria Group down 3%, reflecting negative market sentiment towards the tobacco industry, which may impact investor confidence.
- Industry Trends: This decline mirrors the performance of the oil and gas exploration and production sector, indicating a broader market concern regarding traditional consumer goods, potentially leading investors to reassess the long-term outlook for the tobacco sector.
- Investor Reaction: The overall market's bearish sentiment may prompt investors to shift towards other sectors, exacerbating selling pressure on tobacco stocks and affecting their short-term price performance.
- Future Outlook: With changing consumer preferences and increasing regulatory pressures, the tobacco industry faces challenges, necessitating strategic adjustments from Turning Point Brands and Altria Group to navigate the evolving market landscape.
Analyst Views on MO
Wall Street analysts forecast MO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MO is 65.60 USD with a low forecast of 57.00 USD and a high forecast of 72.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
1 Hold
1 Sell
Moderate Buy
Current: 63.620
Low
57.00
Averages
65.60
High
72.00
Current: 63.620
Low
57.00
Averages
65.60
High
72.00
About MO
Altria Group, Inc. operates a portfolio of tobacco products for United States tobacco consumers aged 21+. Its segments include smokeable products and oral tobacco products. The smokeable products segment consists of combustible cigarettes and machine-made large cigars. The oral tobacco products segment includes moist smokeless tobacco (MST) products and oral nicotine pouches. Its wholly owned subsidiaries include manufacturers of both combustible and smoke-free products. In combustibles, it owns Philip Morris USA Inc. (PM USA), and John Middleton Co. (Middleton), which are cigarette manufacturers. Its smoke-free portfolio includes ownership of U.S. Smokeless Tobacco Company LLC (USSTC), a global MST manufacturer, Helix Innovations LLC (Helix), a manufacturer of oral nicotine pouches, and NJOY, LLC (NJOY), an e-vapor manufacturer with a commercialized product portfolio. The brand portfolios of its operating companies include Marlboro, Black & Mild, Copenhagen, Skoal, on! and NJOY.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
