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Jan 23, 2019
Should Altria (MO, $44.70) be Worried that Young People Are Smoking Less?

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.

Related Ticker: MO

MO in +1.15% Uptrend, growing for three consecutive days on June 29, 2026

Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where MO advanced for three days, in of 385 cases, the price rose further within the following month. The odds of a continued upward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Aroon Indicator entered an Uptrend today. In of 282 cases where MO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 65 cases where MO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .

The Momentum Indicator moved below the 0 level on July 09, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on MO as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .

The Moving Average Convergence Divergence Histogram (MACD) for MO turned negative on July 09, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .

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 .

MO broke above its upper Bollinger Band on June 25, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

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 64, placing this stock better than average.

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 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 (19.488). P/E Ratio (14.987) is within average values for comparable stocks, (20.489). Projected Growth (PEG Ratio) (1.643) is also within normal values, averaging (1.959). Dividend Yield (0.059) settles around the average of (0.044) among similar stocks. MO's P/S Ratio (5.914) is slightly higher than the industry average of (3.002).

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 outstanding price growth. MO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

Notable companies

The most notable companies in this group are Philip Morris International (NYSE:PM), Altria Group (NYSE:MO).

Industry description

The industry is engaged in the growth, preparation for sale, advertisement, and distribution of tobacco and tobacco-related products like cigarettes. In 2017, tobacco companies spent an estimated $9.36 billion marketing cigarettes and smokeless tobacco in the U.S. – an amount that translates to more than $25 million each day (according to a CDC report). Philip Morris International Inc., Altria Group Inc., and British American Tobacco plc are some major cigar makers. In recent times, vaping or the use of e-cigarette (does not burn tobacco) is gaining momentum – several established cigarette makers are trying to expand their footprint in this new market.

Market Cap

The average market capitalization across the Tobacco Industry is 53.77B. The market cap for tickers in the group ranges from 99 to 283.07B. PM holds the highest valuation in this group at 283.07B. The lowest valued company is AHII at 99.

High and low price notable news

The average weekly price growth across all stocks in the Tobacco Industry was 2%. For the same Industry, the average monthly price growth was -7%, and the average quarterly price growth was -14%. ISPR experienced the highest price growth at 33%, while RYM experienced the biggest fall at -13%.

Volume

The average weekly volume growth across all stocks in the Tobacco Industry was -13%. For the same stocks of the Industry, the average monthly volume growth was -19% and the average quarterly volume growth was -37%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 38
P/E Growth Rating: 59
Price Growth Rating: 60
SMR Rating: 72
Profit Risk Rating: 64
Seasonality Score: 12 (-100 ... +100)
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General Information

a holding company which produces and markets tobacco products

Industry Tobacco

Profile
Details
Industry
Tobacco
Address
6601 West Broad Street
Phone
+1 804 274-2200
Employees
6400
Web
https://www.altria.com
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Should Altria (MO, $44.70) be Worried that Young People Are Smoking Less?