Altria Stock: More Risk Than Meets the Eye
The key takeaway from this is that investors buying Altria stock right now are positioning themselves for disappointing future returns. Altria stock is much more expensive than it has been for several years. And, considering its stagnating fundamentals, Altria isn’t likely to grow enough to justify its premium valuation.
In an environment of falling smoking rates, Altria’s future is cloudy. Altria investors display a cult-like loyalty to the stock, but no company ̶ even one with an impressive a history as Altria ̶ is immune from structural changes in consumer habits.
This article is brought to you courtesy of Bob Ciura from Wyatt Research.