Valued at $97.3 billion by market cap, Altria Group, Inc. (MO) operates as a tobacco company, offering a wide portfolio of leading tobacco products in the U.S. The Richmond, Virginia-based company owns several subsidiaries, manufacturing both combustible and smoke-free products.
Altria Group is ready to release its second-quarter results before the markets open on Wednesday, July 30. Ahead of the event, analysts expect MO to report an adjusted EPS of $1.36, up 3.8% from $1.31 reported in the year-ago quarter. While the company has surpassed Street’s bottom-line estimates in three of the past four quarters, it has missed the projections on another occasion.
For fiscal 2025, MO is expected to deliver an adjusted EPS of $5.37, up 4.9% from $5.12 reported in fiscal 2024.
Over the past 52 weeks, MO shares have climbed 24.8%, outperforming the S&P 500 Index’s ($SPX) 6.6% return and the Consumer Staples Select Sector SPDR Fund’s (XLP) 4.8% gains during the same time frame.
MO shares fell sharply on July 9, dropping 4.1% by mid-afternoon despite broader market gains, as the S&P 500 rose 0.3%. The decline followed a bearish note from Jefferies, which initiated coverage with an "Underperform" rating and a $50 price target, citing concerns over Altria’s stretched valuation after its recent rally.
The consensus view on Altria is neutral with a “Hold” rating overall. Out of the 14 analysts covering the MO stock, four recommend “Strong Buy,” eight advise “Hold,” one advocates a “Moderate Sell,” and the remaining analyst gives a “Strong Sell” rating.
While the stock currently trades slightly above its mean price target of $58.50, the Street-high target of $65 represents an upswing potential of 11% from the current market prices
