Sin Stocks Can’t Seem to Break Out of Downward Trends
You may have heard the term “sin stock” at some point over the years, but do you really know which companies are considered sin stocks? Traditionally the term is applied to companies that operate in industries such as alcohol, tobacco, and gambling. There is a long-held belief that these stocks tend to do well no matter what the economy is doing. The reasoning behind that belief is based on how demand for the products is pretty consistent and may even increase during stressful economic times.
While browsing through charts recently I found two sin stocks that can’t seem to break out of the downward trends they have been in for the last four years or so. Altria (MO) and Molson Coors Brewing (TAP) have both seen their stocks trend lower in recent years, but the companies have decent fundamental indicators.
If we look at the weekly chart for Altria we see that the stock has been trending lower since the second quarter of 2017 and from its peak through its low, the stock lost over half of its value. There is also a trend channel that has formed that defines the cycles within the overall downward trend.
Looking at the weekly chart for Molson Coors, we see that the stock peaked just above $100 back in the fourth quarter of 2016. Just last month the stock was trading below $33. We also see a downwardly sloped trend channel forming for the brewer. One difference between the charts is that Molson Coors is in overbought territory based on the 10-week RSI and the weekly stochastic indicators.
Given the downward trends the stocks have been in, you might think the two would rate very poorly when it comes to the fundamentals. But that isn’t the case at all. Tickeron’s fundamental screener shows that Altria does really well with five positive readings and only one negative reading. Molson Coors shows two positive ratings and two negative with three neutral readings.
Both companies get positive readings from the Valuation Rating and from the Seasonality Score. Both companies also get negative ratings in the Profit vs. Risk category—both scoring a 100, the worst possible score. Altria gets additional positive readings in the Outlook Rating, SMR Rating, and P/E Growth Rating. The P/E Growth Rating for Molson Coors is the other bearish reading.
The full analysis from Tickeron shows how the stocks stack up against one another as well as how they compare to other stocks in general.
MO in +1.68% Uptrend, rising for three consecutive days on June 23, 2025
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 373 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
MO moved above its 50-day moving average on June 11, 2025 date and that indicates a change from a downward trend to an upward trend.
The Aroon Indicator entered an Uptrend today. In of 310 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 10-day RSI Indicator for MO moved out of overbought territory on June 24, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 62 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 June 26, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on MO as a result. In of 85 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 June 26, 2025. 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 43 similar instances when the indicator turned negative. In of the 43 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 23, 2025. 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.
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 (4.002). P/E Ratio (9.857) is within average values for comparable stocks, (20.201). MO's Projected Growth (PEG Ratio) (4.018) is very high in comparison to the industry average of (0.990). Dividend Yield (0.069) settles around the average of (0.055) among similar stocks. MO's P/S Ratio (4.936) is slightly higher than the industry average of (2.102).
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 69, 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 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to average 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.
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General Information
a holding company which produces and markets tobacco products
Industry Tobacco
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