|Bid||50.24 x 1000|
|Ask||50.25 x 800|
|Day's Range||49.90 - 50.41|
|52 Week Range||42.40 - 66.04|
|Beta (3Y Monthly)||0.35|
|PE Ratio (TTM)||15.30|
|Forward Dividend & Yield||3.20 (6.41%)|
|1y Target Est||N/A|
Declining cigarette sales and volumes continue to pressure large tobacco companies. To combat falling tobacco demand, industry giant Altria Group, Inc. (MO) has raised its prices six cents per pack, or $3 per carton, according to Wells Fargo analyst Bonnie Herzog, per Barron's. Herzog argues that the move demonstrates Altria's pricing power, adding that British American Tobacco p.l.c.
Altria Group (MO) is a tobacco products giant. Its core tobacco business holds the flagship Marlboro cigarette brand, explains income expert Ben Reynolds, editor of Sure Retirement.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...
Altria Group Inc NYSE:MOView full report here! Summary * Perception of the company's creditworthiness is neutral * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for MO with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting MO. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding MO are favorable, with net inflows of $13.20 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Goods sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. Although MO credit default swap spreads are decreasing, they remain near their highest levels of the last 3 years, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Shares of Cronos Group (NASDAQ: CRON) are starting to stabilize. After its weak first-quarter revenue report reminded investors that Cronos stock was very expensive, speculators are buying the shares once again. Why?Cronos has a $7.9 billion market cap but with its quarterly revenue of CAD $6.5 million (USD ~ $5 million or $20 million annualized), the company trades at 154 times sales.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCronos has no room to report any signs of slowing revenue growth in the near-term. It must continue winning supply deals to grow market share. And on May 14, it did just that. The company inked a $30 million multi-year supply deal with MediPharm Labs over 18 months.The deal could optionally extend to $60 million over 24 months. Cronos will secure MediPharm's private label supply of concentrates, after processing Cronos' dry cannabis.The supply deal validates Altria's (NYSE: MO) $1.8 billion investment in Cronos. By outsourcing the process to a secondary player, Cronos may put Altria's cash to better use. Altria outsources its own tobacco production to thousands of farmers and probably advised Cronos to do the same. * 7 Top-Rated Biotech Stocks to Invest In Today Instead of spending all of its resources on building up production facilities, it could land additional partnership deals while sharing risks with them. Cronos is bullish on its partnerships, especially with its work with Ginkgo.In the September 2018 press release, Cronos said, "The landmark partnership between Cronos Group and Ginkgo will leverage the expertise of both organizations to solve this challenge and make more accessible the benefits of cannabinoids in an economically sustainable way."Since then, Ginkgo met its targets, triggering milestone payments. Ginkgo is a leader in synthetic biology, giving Cronos an advantage over the competition as the science works eventually bring meaningful results. Mixed First-Quarter Results and Cronos StockIn the first quarter, ASP (average selling price) rose 7% to $5.73 due to higher revenue from CBD oil. Operating expenses also rose 12%, as Cronos incurred professional fees for services related to its strategic initiatives.Despite the mixed numbers in the period, Cronos enjoys massive cash levels on its balance sheet that negates any investor worry over quarterly results. Altria's backing puts Cronos in a better position to capture opportunities that arise and to accelerate its strategic initiatives.Cronos has four strategic goals. It is establishing a global production footprint, developing a diversified global sales and distribution network, creating disruptive intellectual property, and growing a portfolio of products that resonates with consumers.Since January 2019, Cronos secured listings with a number of private retailers in Canada and in the province of Ontario, British Columbia, Nova Scotia, and Prince Edward Island. Collectively, those five provinces represent 58% of the Canadian population. Cronos Putting Altria Cash to WorkCronos plans to increase its capital investments to support an increase in production. The company expects Peace Naturals ramping up production through the course of 2019. The company has partnerships with companies in Israel, where it is developing a vapor product.Cronos will have additional production capacity ready in the upcoming second half of the year. It had around 1000 kilos of capacity in the first quarter and aims to have 40,000 kilos next. Getting production to that level will depend on how regulations change. Cronos is scaling up output depending on product demand levels, and demand is a function of regulatory changes that open up the market opportunity. Cronos had over $2 billion on its balance sheet in Q1 but is demonstrating restraint in the way it spends that cash. The Bottom Line on Cronos StockCronos is not profitable yet and its market size is still unknown. Though the company is still losing money, its nearly $2 billion cash balance gives the company plenty of M&A opportunities. Analysts are bullish on the company and have an average price of $28.50 on Cronos stock.Disclosure: As of this writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * The 7 Best Tech Stocks to Buy for the Second Half of 2019 * 7 Top-Rated Biotech Stocks to Invest In Today * 4 Semiconductor Stocks to Sell Compare Brokers The post After a Bumpy Few Months, Cronos Stock Is Back on the Move appeared first on InvestorPlace.
Is Altria Group Inc (NYSE:MO) a good stock to buy right now? We at Insider Monkey like to examine what billionaires and hedge funds think of a company before doing days of research on it. Given their 2 and 20 payment structure, hedge funds have more incentives and resources than the average investor. The funds […]
Wells Fargo argues that Altria’s recent price increases demonstrate the tobacco giant’s pricing power—and its ability to compete even in the face of e-cigarette popularity.
Wells Fargo likes Altria Group Inc (NYSE: MO )’s willingness to use price increases to offset pressure from declining volume in cigarette sales. The Analyst Wells Fargo’s Bonnie Herzog reiterated an Outperform ...
Goldman Sachs has a new strategy for investors to consider. The firm has now revealed that the most dominant companies in an industry tend to outperform companies with a smaller percentage of market sales. There’s even a name for these kind of companies ‘superstar firms.’ “The market positioning of superstar firms often allows for greater bargaining power over consumers and workers and higher profitability,” Goldman's senior US equity strategist David Kostin told investors. “Superstar firms have been one driver of the explosion in US corporate margins post-crisis.”According to Kostin, companies with the highest share of industry sales have returned 49% since 2015. In contrast, companies with the lowest share of industry sales returned just 16% over the same time-frame. Here we take a closer look at five of the most prominent stocks in Goldman Sachs' 'superstar' portfolio. Should you buy into these names now? Let’s see what the Street has to say now… 1\. Altria (MO) * 88% share of industry US salesDuring the last five years, tobacco giant MO has gained 23%. That’s despite a disastrous 2018 which saw prices pullback 30%. So far in 2019, shares are holding steady- and Wells Fargo’s Bonnie Herzog spies upside ahead. She has just reiterated her Buy rating with a price target of $65 (28% upside potential). She believes that Altria will be able to weather the shift from traditional cigarettes to vapor products. “Major tobacco manufacturers are well-positioned in the current regulatory/political environment driven by strong management teams and a deep reservoir of bench talent and funds to drive innovation” says the analyst. Interestingly, Herzog adds that industry consolidation “will increasingly favor scale in the global ‘arms’ race in reduced-risk products (RRPs) while addressing the youth crisis.” Altria, for example, recently invested $12.8 billion in leading e-cigarette maker Juul Labs as well as a further $1.8 billion in cannabis stock Cronos Group (CRON). Luckily for Altria, Juul recently revealed Q1 sales of $528 million, up 23% from the previous quarter’s revenue. Now there is talk that Juul could be on the way to opening its own chain of vaping shops, starting in Houston and Dallas, Texas. Meanwhile Altria will also exclusively distribute Philip Morris International's (PM) "heat-not-burn" tobacco device. Called IQOS the device heats tobacco to around 350°C vs temperatures in excess of 600°C for a cigarette. “Because the tobacco is heated and not burned, the levels of harmful chemicals are significantly reduced compared to cigarette smoke” claims the company.Overall, we can see that the stock has a cautiously optimistic Moderate Buy analyst consensus. This is based on all the ratings received by the company over the last three months. Meanwhile the average analyst price target of $60 indicates upside potential of 18% from current levels. View MO Price Target & Analyst Ratings Detail 2\. Alphabet (GOOGL) * 63% share of industry US salesLooking back, GOOGL has almost doubled in value over the last five years. But that doesn’t mean there isn’t further upside potential ahead. GOOGL still retains a bullish ‘Strong Buy’ Street consensus. What’s more, the $1,334 average analyst price target indicates upside potential of over 22%. That’s despite more anti-trust talk from regulators, with Makan Delrahim (Assistant AG, DOJ) suggesting that stricter regulation may be coming.“Investors may be getting relatively comfortable with the underlying regulatory risk given that so far, the financial performance at FB, GOOGL and AMZN continues to be in line or even better than what the Street has been expecting” notes top-rated SunTrust Robinson analyst Youssef Squali. Given the complexity and global considerations of regulating and/or breaking up big tech, Squali is confident that it is likely to take years for regulatory measures to be implemented, and even longer for them to start impacting the financials of these companies. What’s more there is a growing realization that even in case of a break-up of a behemoth like GOOGL, the value of the parts may be higher than the whole over time. For example, Needham analyst Laura Martin has just reiterated her GOOGL buy rating with a $1,350 price target. She has calculated that the company could be worth nearly 50% more than its current valuation in the case of a break-up. Martin values Google search at $600 per Alphabet share, YouTube at $200, and the Android App Store at $100. Plus there are extra contributions from Gmail, Maps, Waymo, DeepMind etc. “Elevated regulatory scrutiny adds costs and margin pressures for 2-4 years, but probably has little impact on revenue growth or consumer usage until outcomes are determined and then fought out in the courts,” she concluded.View GOOGL Price Target & Analyst Ratings Detail 3\. General Electric (GE) * 51% share of industry US sales With new CEO Larry Culp at the helm, General Electric has put on a remarkable year-to-date rally of over 40%. The company was primed for a rebound after plunging over 50% in 2018. And analysts are currently divided about the stock’s outlook going forward.The key question is whether Culp’s multiyear turnaround plan will succeed to boost the company while reducing its massive $110 billion debt pile (as of March 31, according to FactSet). Cowen & Co’s Gautam Khanna sums up the problem here: “The major debates on GE's stock, which won't be resolved for years, are whether cost cutting & portfolio actions will return Industrial to sustained high FCF [free cash flow] conversion, & if Capital will require more cash support.” As a result, the analyst reiterates his Hold rating on GE with an $8 price target. That suggests shares could fall 20% from current levels. However, there are some more positive voices in the crowd. Most noticeably, William Blair’s Nicholas Heymann has just reiterated his GE Buy rating. He believes GE can ‘materially outperform’ the market over the next 12 months.“We continue to believe GE’s underlying intrinsic value (with no value assigned to Power) is somewhere in the range of $14-$16 per share,” the analyst revealed, describing this as a “highly feasible base-case valuation for GE’s share price over the next 6-12 months.”“The unbridled fear that overshadowed a rational assessment of the company’s underlying fair value exiting 2018 is beginning to recede and be replaced with far less ambiguous and more tangible plans and actions that will support a likely materially higher value for GE’s stock over the next 12 months and beyond,” said Heymann. View GE Price Target & Analyst Ratings Detail 4\. Walt Disney (DIS) * 49% share of industry US salesThis is a critical year for Walt Disney. As well as two new Star Wars attractions, DIS is also launching its own direct-to-consumer (DTC) streaming service known as Disney+. Clearly investors are feeling optimistic- boosted by the success of Avengers: Endgame (the second highest-grossing film of all time), shares are up 29% year-to-date. This brings Walt Disney’s total five-year gain of over 70%. It’s not just investors that are bullish on DIS right now. In the last three months, 16 analysts have published DIS Buy ratings vs just 3 Hold ratings. That gives DIS its ‘Strong Buy’ Street consensus. Meanwhile the average analyst price target of $153 indicates upside potential of 8%. “I believe that Disney+ will be a significant revenue driving opportunity along with the ongoing success of Disney Studios and Theme Parks” commented five-star Tigress Financial analyst Ivan Feinseth. “I further believe both Star Wars and Marvel franchises including a number of series from both these franchises will be significant drivers for Disney+ subscriptions,” Feinseth wrote. ‘Star Wars Episode IX: The Rise of Skywalker’ is set for release this December, and could also generate a whopping $2 billion in box office revenue.At the same time Morgan Stanley’s Benjamin Swinburne has just raised Disney’s long-term DTC subscribers and earnings estimates. This leads him to a new $160 price target and $210 bull case. He is now forecasting over 130mm global OTT subscribers by 2024, and is confident that DIS shares can sustain a premium multiple as the service ramps up. The analyst’s willingness to underwrite these higher estimates stems from: 1) A faster-than-expected global launch for Disney+; 2) More IP aggregating more quickly than anticipated; and 3) A plan to leverage third-party distribution. View DIS Price Target & Analyst Ratings Detail 5\. General Motors (GM) * 48% share of industry US salesOnly three analysts have published recent ratings on GM. Two analysts are staying neutral on the stock, while one analyst- Morgan Stanley’s Adam Jonas\- has a bullish rating on GM. Encouragingly, out of the three analysts, Jonas is the analyst with the strongest stock picking track record. Following relatively ‘in-line’ Q1 earnings results, Jonas reiterated his buy rating and Street-high price target of $44. From current levels that translates into 23% upside potential. According to the analyst, Q1 earnings didn’t fundamentally change his take on the GM story- especially if you strip away the mark-to-market ‘noise’ from the Lyft (LYFT) and PSA revaluations. Nonetheless, Jonas revealed that he was "sympathetic to some investor profit taking" after prices climbed 5% in April.And the analyst also moved to temper expectations surrounding GM’s self-driving Cruise unit. "While we think GM Cruise has important technological value, we urge investors to lower expectations on revenue generation and profitability of the unit," Jonas advised. "Taking nothing away from GM cruise, it is our understanding that the technology required to remove human drivers at an acceptable level of consumer safety is likely many years away." He continued: "And the legal and regulatory construct to support, even proven technology, may present even greater hurdles largely outside of GM Cruise's control."At the time of writing, General Motors has enjoyed a modest year-to-date rise of 7%. Despite rallying in both 2016, and 2017, 2018 was a more difficult year for GM investors with the stock losing 19%. View GM Price Target & Analyst Ratings DetailDiscover stock ideas from the Street’s best performing analysts here
[Editor's note: This story was previously published in March 2019. It has since been updated and republished.]Often, when analysts or bloggers talk up the potential of marijuana stocks, the focus is on the consumer side of the industry. But some of the best stocks in the pot sector may be medical marijuana stocks.Indeed, it's on the medical side where growth likely is to be largest in the near term. Canada did legalize recreational marijuana in October, but investors promptly sold the news in response. U.S. legalization is likely to be a long slog. Attitudes are mixed in Europe -- but even in legalized markets anywhere, black market (and untaxed) operators will be able to take share.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, approval of medical marijuana (in the U.S. and elsewhere) seems to be moving at a faster pace. In such a highly regulated market, black market and even smaller producers likely will be shut out. Quality and consistency will be key. Here, scale will matter. And those companies that win early have the best chance of becoming market leaders -- and providing big gains for investors. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 As always -- and particularly in this space -- investors need to mind the risks and size positions accordingly. But for investors who see medical marijuana stocks as the next big thing, these three are the best stocks to buy for investors enamored with weed.Source: Shutterstock Charlotte's Web (CWBHF)Charlotte's Web (OTCMKTS:CWBHF) has become one of the leading players in CBD oil (cannabidiol). And though Charlotte's Web products are made from hemp -- at least for now -- instead of marijuana, the stock still looks like one of the best plays in the sector.InvestorPlace's Matt McCall named CWBHF (the stock also trades on the Canadian Securities Exchange, ticker CWEB) as his pick for our list of the best stocks for 2019. And the case makes some sense. CBD oil sales are soaring, and Charlotte's Web is a market leader. As McCall pointed out, the federal farm bill in the U.S. provided a catalyst by legalizing hemp.With so many customers yet to try CBD oil -- and so many existing users attached -- market growth should be huge. And while CWBHF isn't cheap from a valuation standpoint, its position as a market leader should allow it to grow into its valuation.Source: Shutterstock Cronos (CRON)Of late, marijuana producer Cronos Group (NASDAQ:CRON) has made the headlines for its consumer business. Most recently, tobacco giant Altria (NYSE:MO) invested some $1.8 billion in the company. The combination of Altria's advertising and distribution reach and Cronos' production capabilities would seem to be the best fit for the consumer side of the business.But investors can't ignore that Cronos is a medical marijuana stock as well. In fact, it's that business that drives the majority of its revenue at the moment. And it also has given the company a beachhead in multiple markets around the world, from its home market of Canada to Germany, Israel and Poland. * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 I wrote after the Altria deal that investors should stay patient with CRON stock. And in this market, that might still be wise advice.Source: Shutterstock CannTrust (CTST)CannTrust (NYSE:CTST) has been one of the biggest victims of the post-legalization selloff. The stock lost more than half its value and touched a 52-week low in the process last year. And it's been in an almost continuous slump again since March.Unlike many peers, the company usually posts gross profits. And its established leadership in the Canadian medical marijuana industry should drive consistent growth and allow CannTrust to stay profitable. There is some retail exposure here as well, but unlike peers, CannTrust seems to have room to drive upside on the medical side alone.CannTrust also was able to get a listing on the New York Stock Exchange this year. Admittedly, uplisting hasn't helped pot stocks in and of itself (most notably Aurora Cannabis (NYSE:ACB) took a lot longer to take off than was expected), but it certainly didn't hurt.From a profitability standpoint, at least, CNNTF seems like one of the best stocks in the pot sector. And with valuation near the lows, at least some of the risks here likely are priced in.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors Compare Brokers The post 3 Medical Marijuana Stocks to Buy appeared first on InvestorPlace.
Shares of Cronos Group Inc. (NASDAQ:CRON), the Canadian medical marijuana producer, have been on a roller coaster ride this year. In the first quarter, Cronos stock more than doubled, but as the quarter drew to a close, investors departed the name, sending the shares tumbling over the course of April and May.Source: Shutterstock This month, Cronos stock seems to have found round-number support at $14 and is rallying hard off that level. While the stock was pinched on June 11, to the tune of a 2.42% loss, it is still up 28% over just the past week.One of the obvious catalysts this month for Cronos stock was an upgrade by Bank of America analyst Christopher Carey coupled with an epic, upward price target revision by that analyst. Earlier this month, Carey lifted his rating on Cronos stock to "buy" from "underperform," the equivalent of a "double upgrade" because there is usually a rating in between "buy" and "underperform." Additionally, the analyst boosted his price target on Cronos stock to $20 from $13, implying a decent amount of upside from Tuesday's close of just under $17.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Cronos ControversyAs is the case with so many cannabis stocks, opinions differ on Cronos stock. While Cronos has its share of supporters, there are also skeptical voices. At least one analyst prefers Aphria (NYSE:APHA) to Cronos, though the former is about $1.3 billion smaller than the latter in terms of market value. * 7 Stocks to Buy for the Coming Recession Jefferies analyst Owen Bennett said Aphria's strengths in extraction, capacity and its international strategy are attractive qualities, while noting Cronos stock is richly valued relative to its cannabis equity peer group.Contributing to the debate on Cronos stock, Stifel analyst Andrew Carter recently initiated coverage of the name with a "tepid" hold rating. However, Carter notes a sector-wide pullback could enable financially sturdy marijuana companies, including Cronos, to possibly scoop up some rivals at discounted valuations.Cronos has $1.8 billion in cash, one of the more impressive cash hoards in the legalized marijuana industry and one that really stands out when considering the company's market capitalization is just over $3 billion. That $1.8 billion is the sum tobacco giant Altria Group (NYSE:MO) previously invested in Cronos, and Altria CEO Howard Willard has been open about his company making that investment in Cronos to help medicinal marijuana firm make the moves it needs to make to bolster market share. Bottom Line on Cronos Stock: Looking South of the BorderCronos is a Canadian company and while recreational marijuana is legal across that entire country, the real opportunity for the company may lie south of the border in the U.S., where the company is looking to enter the fast-growing cannabidiol (CBD) market.CBD is the most popular cannabis-based derivative.Currently, much of the enthusiasm for CBD revolves around hope and speculation. Supporters believe it can be elixir for various medical ailments and other uses, but there is not much in the way of empirical scientific evidence to support those claims. The good news for Cronos stock, assuming the company can effectively execute a foray into the U.S. market, is that the segment is expected to deliver exponential growth.A recent study by BDS Analytics and Arcview Market Research says the U.S. CBD market could swell to $20 billion by 2024."In fact, BDS Analytics is predicting an compound annual growth rate of 49 percent by 2024 across all distribution channels," reports Forbes. "Also, they expect that the CBD market, combined with THC products, will create a total market of $45 billion for cannabinoids by 2014." * 7 High-Quality Cheap Stocks to Buy With $10 Bolstering the long-term case for Cronos stock are the various distribution channels for CBD, many of which are mainstream. The ride will include some volatility -- that is just the name of the game with cannabis stocks -- but Cronos stock is a compelling long-term idea if management executes the CBD opportunity the right way.As of this writing, Todd Shriber did not own any of the aforementioned securities.Compare Brokers The post Cronos Stock Could Be Worth the Bumpy Ride appeared first on InvestorPlace.
An unexpected price increase for nearly all of the tobacco maker’s brands, emphasizes Altria’s pricing power and will be followed by the rest of the industry, Wells Fargo says.
The U.S. Food and Drug Administration said it can advance the date for the submission of e-cigarette applications, responding to a ruling that the agency had exceeded its authority by allowing e-cigarettes to remain on the market until 2022 before companies applied for regulatory approval. The FDA in a court filing on Wednesday proposed adoption of a timeline of not less than 10 months to submit the applications after a final ruling, if the court decides not to remand the case back to the agency for further action. "Should the Court order premarket applications to be submitted by a date certain, it should set that deadline no sooner than 10 months from the date of its decision, along with a one-year period for FDA review," FDA said in the court filing.
British American Tobacco said in a news release Wednesday that it expects global industry volume to be down by around 3.5 percent in 2019. Despite a guide for lower volume shipments, British American said it remains on track for constant currency revenue growth in the mid-to-upper half of its long-term guidance of 3-5 percent.
Under FDA regulation of e-cigarettes that began in 2016, e-cigarettes, known by the agency as electronic nicotine delivery systems, or ENDS, that were already on the market had to apply for FDA approval to remain available after August 2021.