Altria Group Inc (MO)

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Why Altria (MO) is a Top Growth Stock for the Long-Term
By: Zacks Equity Research | May 19, 2022

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why This 1 Growth Stock Should Be On Your Watchlist

Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Altria (MO)

Altria Group has been evolving with the changing industry dynamics. Given the rising health consciousness and stern government regulations to discourage smoking, this tobacco behemoth has been moving beyond traditional cigarettes and expanding in the smokeless category. We note that revenues from the oral product category have been steadily rising on the back of growing popularity for reduced risk products. In this respect, Altria is gaining from the sale of IQOS in United States, through its licensing deal with Phillip Morris. Further, Altria’s investment in Cronos Group highlights its focus on exploring the cannabis market.

MO boasts a Growth Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Its bottom-line is projected to rise 5% year-over-year for 2022, while Wall Street anticipates its top line to improve by 0.6%.

Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2022. The Zacks Consensus Estimate has increased $0 to $4.84 per share. MO boasts an average earnings surprise of 1.2%.

Looking at cash flow, Altria is expected to report cash flow growth of 4.5% this year; MO has generated cash flow growth of 7.3% over the past three to five years.

MO should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores.

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