Altria (MO) Shows Interest in Marijuana Producer Cronos (CRON) Group
One of the world's largest producers and marketers of tobacco, cigarettes and related products, Altria Group has initiated talks with Canadian cannabis producer Cronos for a likely takeover, as it seeks to diversify its business beyond traditional tobacco smokers.
According to Marijuana Business Daily, the total demand for marijuana including both legal and black-market sales is estimated to be around $52.5 billion, while the e-cigarette market is expected to grow to $6.6 billion in the US in 2018.
Cigarette sales in the US are on a continuous decline over the last few years, largely owing to older smokers dying and very few young people taking up smoking. This has resulted cigarette smoking in U.S. falling to its lowest point in recorded history, but marijuana and e-cigarettes have opened up a new horizon for cigarette makers like Altria to explore.
That being said, Cronos has not confirmed any deal nor there is any certainty it will do so. However, shares of Cronos rose as much as 23% as the news hit the market, pushing Cronos Group's market cap close to $2 billion.
The news comes as Altria is also eyeing a significant minority stake in e-cigarette company, Juul, in-line with its diversification strategy.
MO's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for MO turned positive on August 21, 2026. Looking at past instances where MO's MACD turned positive, the stock continued to rise in 28 of 46 cases over the following month. The odds of a continued upward trend are 61%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where MO's RSI Oscillator exited the oversold zone, 13 of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 57%.
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 32 of 55 cases where MO's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 58%.
The Momentum Indicator moved above the 0 level on September 11, 2026. You may want to consider a long position or call options on MO as a result. In 46 of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 57%.
Following a +1.61% 3-day Advance, the price is estimated to grow further. Considering data from situations where MO advanced for three days, in 216 of 387 cases, the price rose further within the following month. The odds of a continued upward trend are 56%.
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 37%.
The Aroon Indicator for MO entered a downward trend on August 26, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 7 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 67, placing this stock better than average.
The Tickeron SMR rating for this company is 8 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 21 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (19.382). P/E Ratio (14.522) is within average values for comparable stocks, (23.474). Projected Growth (PEG Ratio) (2.643) is also within normal values, averaging (3.758). Dividend Yield (0.062) settles around the average of (0.048) among similar stocks. MO's P/S Ratio (5.653) is slightly higher than the industry average of (2.805).
The Tickeron PE Growth Rating for this company is 29 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 47 (best 1 - 100 worst), indicating steady price growth. MO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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General Information
a holding company which produces and markets tobacco products
Industry Tobacco
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