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.
MO's MACD Histogram crosses above signal line
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 Indicator 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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