Stock Price & Analysis

Based on the provided data and recent market analysis, here's a concise assessment of MO stock:

Technical Analysis

The stock shows strong technical signals with:

• RSI-14 at 64.54 indicating bullish momentum but approaching overbought territory
• Trading above all major moving averages (5,10,20,60,200-day SMAs)
• Bollinger Band position at 0.91 suggests room for further upside

Fundamental Analysis

• Forward P/E of 10.27x, below market average
• PEG ratio of 2.9x indicates moderate growth premium
• High dividend yield of 7.7% with sustainable 80% payout ratio

Recent Developments

• Management recently walked back smoke-free product goals due to competitive pressure from illegal vape products
• Q4 2024 earnings beat expectations with $1.29 EPS vs estimates
• 2025 guidance of 2-5% EPS growth ($5.22-5.37) slightly disappointed investors

Recommendation: HOLD

Rationale:

• Strong dividend sustainability supports holding for income investors
• Valuation appears fair given growth outlook
• Technical indicators suggest positive momentum
• However, long-term growth concerns and regulatory challenges warrant caution on new positions

Based on the provided data and analysis, here is the price prediction for MO (Altria Group) stock in 2025:

MO stock is expected to reach $57-58 by end of 2025, representing approximately 10% upside from current levels. This projection is supported by:

1. Strong technical momentum with price breaking above key resistance levels and trading above major moving averages, while RSI at 64.54 indicates room for further upside without being overbought.

2. FDA's recent favorable regulatory stance on nicotine pouches like ZYN (which Philip Morris owns) suggests a supportive environment for smoke-free alternatives, benefiting major tobacco companies transitioning away from traditional cigarettes.

The stock shows strong support around $52-53 levels based on fibonacci analysis, with resistance at $54.87 and $55.55. Breaking above these levels could accelerate momentum toward the $57-58 target range.

The S1 support level for MO Stock is $52.76 ,The R1 resistant level for MO Stock is $55.96.

As of the end of day on 2025-02-26, the price of MO Stock was $55.77.

The target price for MO Stock according to analyst rating is 54.83, with the highest price target at 61.00 and the lowest at 46.00. Analysts have a Moderate Buy rating on MO Stock overall.

The market cap of MO is $94.7B.

Based on the provided data and context, I'll analyze whether MO (Altria Group) is overvalued.

MO is currently trading at a forward P/E of 10.04 and EV/EBITDA of 7.69, which are significantly below market averages, suggesting the stock is not overvalued from a traditional valuation perspective. The company's technical indicators show RSI at 64.54 and Bollinger Band position at 0.91, indicating the stock is approaching but not yet in overbought territory. Recent earnings guidance for 2025 projects 2-5% EPS growth to $5.22-$5.37, which came in slightly below analysts' expectations of $5.35. The stock's high dividend yield of 7.66% is well-supported by a comfortable payout ratio of 80% and reasonable leverage of 2.1x EBITDA.

Altria Group, Inc. is a holding company, which provides a portfolio of tobacco products for United States tobacco consumers aged 21+. Its segments include smokeable products, oral tobacco products, and all other. The smokeable products segment includes of combustible cigarettes manufactured and sold by Philip Morris USA Inc. (PM USA), and machine-made large cigars and pipe tobacco manufactured and sold by Middleton. The oral tobacco products segment consists of moist smokeless tobacco (MST) and snus products manufactured and sold by U.S. Smokeless Tobacco Company LLC (USSTC), and oral nicotine pouches manufactured and sold by Helix Innovations LLC (Helix). The oral tobacco products segment includes the premium brands, Copenhagen and Skoal, and Red Seal. It also includes on! oral nicotine pouches. The Company’s e-vapor products are marketed by NJOY, LLC (NJOY), a wholly owned subsidiary of the Company. Its tobacco subsidiaries sell their tobacco products principally to wholesalers.

Based on the provided data and references, here is a detailed analysis for MO stock's price prediction for 2030:

Price Target Analysis for 2030

Altria (MO) stock is projected to reach $75-80 by 2030, driven by its transition to smoke-free products and strong pricing power in traditional tobacco, though facing continued volume decline challenges in its core cigarette business.

Key Drivers Supporting This Prediction:

1. Smoke-Free Transition

• Company aims to generate 2/3 of revenue from smoke-free products by 2030
• Strong growth in oral tobacco category with 15.3% volume increase YoY
• NJOY acquisition providing new growth avenue in vaping segment

2. Core Business Challenges

• Cigarette volumes declining at accelerating rate (10.6% decline in recent quarters)
• Marlboro market share expected to drop below 40% by 2027 from current 41%
• Price increases helping offset volume declines but may face limits

3. Financial Strength

• Strong dividend payout ratio at 80% of earnings
• Reasonable leverage at 2.1x EBITDA
• Analysts project 3.5% annual earnings growth over next 3-5 years

MO has a total of 6400 employees.