Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Why the Dip in Altria is a Buying Opportunity

Published 04/27/2021, 12:32 PM
Updated 04/27/2021, 01:30 PM
© Reuters.  Why the Dip in Altria is a Buying Opportunity
PM
-
MO
-

While some tobacco companies might be affected by the Biden administration’s potentially tougher regulations on nicotine content in cigarettes, Altria (MO) is favorably positioned to thrive thanks to its diversified portfolio of products. So, because the stock has declined lately on overall negative sentiment about the tobacco industry, we think now could be a good investment entry opportunity into MO. Read on.Shares of Fortune 200 company Altria Group , Inc. (NYSE:MO) have s gained 19.8% over the past year. The company manufactures and sells cigarettes, oral tobacco products and wine through its subsidiaries, which include Philip Morris (NYSE:PM) USA Inc., John Middleton Co. and UST LLC. And, as the tobacco industry attempts to change for the better, MO is increasing its focus on harm reduction and informed consumer choice.

MO’s stock has declined 9.4% since hitting its peak of $52.38 on April 16 on the rumors that the Biden administration may introduce tougher tobacco-company regulations. However, thanks to its diversified portfolio, the stock is expected to rebound in the coming months.

So, we think the price dip has created a perfect buying opportunity for investors. Furthermore, MO has authorized a $2 billion share repurchase program, which is expected to be completed by June 30, 2022.

Continue reading on StockNews

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.