|Bid||39.72 x 800|
|Ask||39.73 x 900|
|Day's Range||39.69 - 40.44|
|52 Week Range||30.95 - 52.45|
|Beta (5Y Monthly)||0.46|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jul 28, 2020|
|Forward Dividend & Yield||3.36 (8.48%)|
|Ex-Dividend Date||Jun 12, 2020|
|1y Target Est||47.93|
The first pick is Walt Disney (NYSE: DIS), a diversified entertainment company trading at an attractive discount because of the coronavirus pandemic. The second pick is Altria (NYSE: MO), a tobacco giant that has raised its dividend for five decades in a row. Walt Disney rides a fine line between value and growth.
UST, John Middleton, Burger Söhne Holding AG, Juul, and Cronos Group are major companies owned by Altria.
First up is General Mills (NYSE: GIS). While some industries' revenues evaporated, General Mills accelerated its growth. For fiscal 2020, the General Mills pet food segment grew 18%, tripling the overall company's pace, and there is reason to believe that can continue.
We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not […]
Altria Group, Inc. (Altria) (NYSE: MO) announces today that the U.S. Food and Drug Administration (FDA) authorized the marketing of the IQOS tobacco heating system as a modified risk tobacco product with a reduced exposure claim. IQOS is the first next-generation inhalable tobacco product to be authorized as a modified risk tobacco product. Unlike cigarettes, the IQOS system heats but does not burn tobacco. Philip Morris USA (PM USA), under an exclusive licensing agreement with Philip Morris International (PMI), commercializes IQOS in the United States.
Shares of Altria Group (NYSE: MO) have gone up in smoke this year as the domestic Marlboro maker fell early in the year after it took another impairment on its Juul Labs stake and then got slammed by the coronavirus pandemic. According to data from S&P Global Market Intelligence, the stock has slipped 21% through the first six months of the year. Altria began the year with Juul facing stiff headwinds as regulators sought to ban flavored e-cigarette pods, the latest setback for the once-promising cigarette disruptor, with the e-cigarette brand embroiled in a number of lawsuits at the state level.
With markets volatile – bouncing around the 3,000 to 3,200 range for the last two weeks – and fears rising that a second wave of coronavirus cases will force a new round of economic shutdowns, investors are giving a second look to some strong defensive stocks. We’re talking about stocks with classic defensive profiles: high yielding dividends, combined with a high upside potential. Using TipRanks database, we’ve pinpointed two such stocks. Both offer investors a fine combination of defensive traits: dividends yielding over 8%, an upside potential starting at 25%, and ‘Strong Buy’ consensus rating from Wall Street’s analyst corps. Archrock, Inc. (AROC)We’ll start with Archrock, a natural gas midstreaming company. The midstream sector connects gas extraction with the final customer; midstream companies control the pipelines, transport, and storage facilities that the natural gas industry depends on. Archrock has operations in the lower 48 states, providing the compression equipment that liquifies natural gas for transport and storage.The economic shutdowns in Q1 forced a decline in demand, and Archrock’s Q1 EPS was a down sharply sequentially, from 27 cents to 12 cents. At the same time, revenues beat both the estimates and the year-ago number. At $249.7 million, the top line was up 5.7% year-over-year.A strong free cash flow and heavy-handed actions to cut costs and shore up liquidity allowed AROC to maintain its dividend payment for Q1, and the company paid out 14.5 cents per share common share back in May. This was unchanged from Q4, and up 10% from the first quarter of 2019. It’s a measure of Archrock’s underlying soundness and commitment to the dividend that the company has kept up the payment even during the corona crisis. At 58 cents per share annualized, AROC's dividend yield is an impressive 8.54%.5-star analyst T J Schultz, of RBC Capital, believes AROC has a firm foundation to move forward. He writes of the stock, “We expect lower associated gas production to have an impact on AROC utilization into 2021, but we think manageable debt leverage and ample dividend coverage provide some flexibility… we think the riskreward is decent at current levels given AROC’s liquidity, lack of near-term debt maturities, and ability to pull additional levers to manage liquidity further if needed.”Schultz’ Buy rating on the stock is supported by an $11 price target, which suggests an impressive 68% upside potential for the year. (To watch Schultz’ track record, click here)Overall, the Strong Buy analyst consensus rating on AROC is unanimous, based on 3 recent Buy reviews. Shares are priced at $6.55, and the $9.17 average price target implies a one-year upside of 40%. (See Archrock stock analysis at TipRanks)Altria Group, Inc. (MO)The next stock on our list is a classic ‘sin stock.’ Altria is a tobacco company, the maker of Marlboro cigarettes. Tobacco companies have a long history of outperforming market downturns, and the reason is psychological. People will make big changes when financial hardship hits. They’ll give up luxuries and large purchases, and even delay home and repairs – but they’ll keep buying small pleasures like cigarettes. It’s a quirk that has helped make MO a strong defensive play even as overall smoking rates decline.A look at the Q1 numbers bears out Altria’s solid position. Revenues and earnings – the top and bottom lines – both beat the estimates. Revenues, at $5.05 billion, were 9% above forecasts, and 15% over the year-ago number. EPS came in at $1.09, 12% higher than expected and up almost 7% year-over-year.Wise diversification from the company has also helped. Altria has taken strong positions the cannabis industry, the vaping sector, and in alcohol, with large-scale investments in Cronos Group, JUUL Labs, and AB InBev. These moves mark a shift for Altria, from pure-play tobacco to the full spectrum of vices.Altria’s sound niche has allowed the company to keep its solid dividend – with a 12-year history of reliable payments and steady growth – up to date. The company declared its next payment for July 10, of 84 cents per common share. This gives and annualized rate of $3.36 per share, and a yield of 8.56%. The 77% payment ratio is high, showing a commitment to returning profits to shareholders – but it also shows that the company can sustain the dividend at current income levels.Piper Sandler analyst Michael Lavery sees Altria’s overall position as favorable, even during the pandemic. He states his belief that “We believe consumption may have actually increased during the pandemic, as smokers spend more time away from offices, restaurants, and places with smoking bans. Lower income consumers have also benefited from increased unemployment benefits and the government stimulus... Altria has a vast database of adult US smokers, and it has data at the zip code level to inform pricing and couponing strategies. Altria can monitor and manage mix with its revenue management system on a very targeted basis.”Lavery’s Buy rating on the stock is backed by his $57 price target, which implies a robust upside for MO shares of 45%. (To watch Lavery’s track record, click here)With 6 Buy ratings set in recent weeks, MO shares have a Strong Buy from the analyst consensus rating. The $54.50 average price target suggests an upside of 39% from the $39.24 current trading price. (See Altria stock-price forecast on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
When most people think of marijuana stocks, the last thing they think of is dividends. The legal marijuana industry is still very young, and new companies in growing industries need money to expand. Furthermore, U.S. investors in the marijuana space tend to currently focus on a handful of Canadian companies that have enjoyed the opportunity to list on U.S. exchanges.
Volumes and pricing for tobacco products have been stronger in the U.S. than they have been for a number of years, says Citigoup’s Adam Spielman.
Like the majority of investors, you're most likely working on a retirement portfolio that will provide a large enough nest egg to give you a comfortable retirement. Make sure you know all about what financial planners call the accumulation and distribution phases of retirement planning.
Investors who buy regardless of price and valuation inevitably get hit with reality, writes Vitaliy Katsenelson.
Leading Canadian cannabis producer Canopy Growth (NYSE:CGC) has been on a roller-coaster ride over the past few years, with CGC stock rallying from $10 to $50, before falling all the way back to $10, only to slightly recover to levels around $20.Source: Shutterstock But it increasingly appears that this roller coaster is due for a huge leg-up over the next few months, and that now is the perfect time to buy CGC stock.Here are four reasons why:InvestorPlace - Stock Market News, Stock Advice & Trading Tips* The fundamentals in the legal Canadian cannabis market are starting to meaningfully improve to a point where big growth is sustainable over the next few years.* Canopy Growth is successfully transitioning from "growing fast" to "growing smart," a pivot which will ultimately improve profitability and boost the stock.* Canopy Growth is in the early stages of penetrating the U.S. cannabis market, and successful ramp of the company's U.S. business over the next few quarters and years will add a lot of firepower to the company's growth narrative.* As the optics surrounding Canopy Growth improve over the next few quarters, investors will turn their eyes towards the fundamentals, which support a price tag for CGC stock up above $30. Canadian Fundamentals ImprovingAs one of the first countries to fully legalize recreational marijuana, Canada was due for some operational hiccups in 2018 and 2019.Of note, strict regulations largely limited the number of cannabis retail store openings, leading to a significant shortage of places where consumers could actually buy marijuana. Concurrently, the market suffered from a lack of options, as things like cannabis edibles, vapes and drinks were not available for purchase when the market first legalized. * 10 Robotics Stocks on the Technological Cutting EdgeBoth of these shortcomings have been addressed in 2020.Most of Canada is gradually moving towards an open store licensing process, which will remove a cap on the number of private cannabis stores that can be open. At the same time, the legal market has introduced a slew of cannabis alternatives in 2020, including edibles, vapes and drinks.These changes create a foundation upon which the legal Canadian cannabis market can now sustain big growth over the next few years.As the Canadian market does sustain big growth going forward, this will create a rising tide which will lift all boats in the market, CGC stock included. CGC Stock Is Growing Smart, FinallyCanopy has a new management team which is taking all the right steps to position Canopy for profitable, long-term growth.Specifically, management is reducing Canopy's global reach in an effort to streamline geographic focus in America, Germany and Canada -- the three biggest and most developed commercial cannabis markets. The company is also curbing production, downsizing the product portfolio and pivoting toward a data-driven, consumer-first model.In other words, Canopy is going from "growing faster" to "growing smarter."Naturally, that transition is weighing on near-term growth. But it also positions the company to launch better products, grow margins and expand its dominance in the world's most important cannabis markets over the next few years.In the big picture, then, Canopy is finally doing everything right to guarantee itself a bright (and profitable) future in the global cannabis market. U.S. Growth Is Coming SoonCanopy Growth has long held out on entering the U.S. cannabis market until marijuana becomes federally legal.But, in late 2019, the company broke its own rule, and launched a line of hemp-derived CBD products like soft gels, oil drops and creams under the First & Free brand in the U.S.In other words, U.S. revenue should start to show up for the first time on Canopy's income statement in 2020.That's a big deal, since the U.S. is Goliath and Canada is David when it comes to cannabis. Specifically, U.S. legal spending on cannabis measured more than $12 billion in 2019, while Canada legal spending on cannabis was less than $2 billion.To that end, it is critical for Canopy Growth to gain exposure to the U.S. cannabis market. Now, they've finally done that.I expect the U.S. business to significantly ramp over the next few years, boosted by potential federal legalization in 2021 or 2022, and for investors to grow increasingly bullish on Canopy's global growth prospects as its U.S. business starts to gain traction.Against that backdrop, CGC stock should move higher. Canopy Growth Stock to $30?Given the aforementioned points -- improving Canadian market growth prospects, a pivot towards higher-margin growth and entry into the U.S. market -- it's easy to see that the optics surrounding Canopy Growth will dramatically improve over the next few quarters.As they do, investors will start to turn their eyes towards the fundamentals.Those fundamentals support a price tag for CGC stock around $40.Canopy Growth is the biggest, deepest pocketed, most well-equipped player in the cannabis market. They reasonably project to be the Altria (NYSE:MO) or Anheuser-Busch (NYSE:BUD) of this space. Those are $100 billion companies. Canopy may not get that big because the cannabis market won't be as big as peer tobacco and alcoholic beverage markets. But it will get very big one day -- much bigger than its current $6.5 billion market cap.Within this mental framework, my modeling suggests that Canopy Growth will hit roughly $10 billion in sales by 2030, with 30% operating margins, and $5 in earnings per share. Based on a forward earnings multiple of 16, which is average for the market, that yields a $100 price target for CGC stock by 2029. Discounted back by 10% per year, that equates to a 2020 price target of about $33 to $34. Bottom Line on CGC StockCGC stock has been on a bumpy ride over the past few years. While this chop is entirely expected from a new, hyper-growth company in a new, hyper-growth market, it increasingly appears that this chop is going to end soon.What comes next? Secular growth. Thanks to improving Canadian market fundamentals, a pivot towards higher-margin growth at the company, and entry into the U.S. market, CGC stock looks ready for a sustainable move higher.And, because of that, now is the perfect time to buy CGC stock.Luke Lango is a Markets Analyst for InvestorPlace. He has been professionally analyzing stocks for several years, previously working at various hedge funds and currently running his own investment fund in San Diego. A Caltech graduate, Luke has consistently been recognized as one of the best stock pickers in the world by various other analysts and platforms, and has developed a reputation for leveraging his technology background to identify growth stocks that deliver outstanding returns. Luke is also the founder of Fantastic, a social discovery company backed by an LA-based internet venture firm. As of this writing, he was long CGC. The post 4 Reasons Why Now Is the Perfect Time to Buy Canopy Growth Stock appeared first on InvestorPlace.
Altria's (MO) focus on oral tobacco products along with solid pricing bodes well, though cigarette volumes have been soft due to rising health consciousness and government regulations.
First is Altria Group (NYSE: MO). Sales were resilient for Altria this quarter at 12% growth and actually accelerated compared to roughly flat sales for the market. As a tobacco company, Altria enjoys a reliable consumer base.
Stifel analyst Christopher Growe reiterated a Buy rating and $52 price target on Altria Stock. He notes that tobacco names have largely been left out of the consumer-staples stock rally.