- Tools for Investors
- Stock News
- Investing Ideas
- Econ & Policy
- Personal Finance
With shares of Altria Group Inc. (NYSE:MO) trading at around $33.70, is MO an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
If you have owned shares in Altria Group over the past three years, then you can relate to the title. You have enjoyed a gain over 100 percent over a three-year time frame while also receiving healthy dividend payments. Life doesn’t get much better when it comes to investing. However, while past results might be a good indicator for the odds of future success, there are no guarantees.
Altria recently reported Q4 results. EPS came in at $0.55, which was a 34.1 percent increase year-over-year. Atria has displayed pricing power and continued to gain market share. Prices for all cigarette brands were raised by 6 cents per pack. There has also been a higher equity investment in SABMiller.
FY2012 EPS came in at $2.06, which was a 25.6 percent increase over last year. Guidance for FY2013 was $2.34 to $2.40. We will focus on guidance in the Trends section as they strongly relate to one another for this story.
Altria has made significant progress with its cost reduction program with a reduced headcount, consolidation of facilities, and improved business processes. The goal of $400 million in annualized savings seems attainable.
Let’s take a look at some important numbers for Altria Group prior to forming an opinion on the likelihood of the stock’s direction…
Don't miss one of the biggest bull markets in history! Covers Gold, Silver, Gold & Silver stocks, and miners.
There's always a bull market in some sector! Find the best opportunities in commodities.