Should Altria (MO, $44.70) be Worried that Young People Are Smoking Less?
Traditional cigarettes are likely to suffer a backlash in the long run, as substitutes like e-cigarettes are gaining momentum at a steady pace in the smoking market, particularly among the younger demographic.
This has made the leading tobacco brand, Marlboro maker Altria Group Inc., invest in e-cigarette company Juul Labs and cannabis company Cronos Group Inc.
Morgan Stanely (MS) analysts have recently predicted a decline in the sale of traditional cigarettes as demographic modeling reveals cigarette smoking volume is expected to witness deceleration of around 6% a year over the next decade, with young people not taking it up. The stock might also hit low single-digits.
Merging with Juul in the production of e-cigarettes does not eliminate risks for the Marlboro maker. Strict new regulatory laws from the FDA could prove to be counter-productive for the company’s revenue growth, and ironically, the growth of Juul and other e-cigarettes is likely to come at the expense of traditional cigarettes.
Momentum Indicator for MO turns positive, indicating new upward trend
MO saw its Momentum Indicator move above the 0 level on November 26, 2025. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 83 similar instances where the indicator turned positive. In of the 83 cases, the stock moved higher in the following days. The odds of a move higher are at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where MO's RSI Indicator exited the oversold zone, of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for MO just turned positive on November 14, 2025. Looking at past instances where MO's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MO advanced for three days, in of 376 cases, the price rose further within the following month. The odds of a continued upward trend are .
MO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
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 of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for MO entered a downward trend on November 12, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously 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 (10.751). P/E Ratio (11.286) is within average values for comparable stocks, (21.522). MO's Projected Growth (PEG Ratio) (4.018) is very high in comparison to the industry average of (0.951). MO has a moderately high Dividend Yield (0.070) as compared to the industry average of (0.047). MO's P/S Ratio (4.948) is slightly higher than the industry average of (2.388).
The Tickeron SMR rating for this company is (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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 66, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (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 (best 1 - 100 worst), indicating fairly steady price growth. MO’s price grows at a lower 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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