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.
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Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
MO's Stochastic Oscillator remains in oversold zone for 3 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
MO moved above its 50-day moving average on October 05, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for MO crossed bullishly above the 50-day moving average on September 16, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 47%.
Following a +1.39% 3-day Advance, the price is estimated to grow further. Considering data from situations where MO advanced for three days, in 218 of 388 cases, the price rose further within the following month. The odds of a continued upward trend are 56%.
MO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 113 of 283 cases where MO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 40%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 28, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on MO as a result. In 35 of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 43%.
The Moving Average Convergence Divergence Histogram (MACD) for MO turned negative on September 29, 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 21 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 46%.
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 36%.
Fundamental Analysis (Ratings)
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 Profit vs. Risk Rating rating for this company is 8 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock better than average.
The Tickeron Valuation Rating of 22 (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 (25.253) is normal, around the industry mean (16.498). P/E Ratio (14.554) is within average values for comparable stocks, (19.513). Projected Growth (PEG Ratio) (2.649) is also within normal values, averaging (3.595). Dividend Yield (0.062) settles around the average of (0.037) among similar stocks. MO's P/S Ratio (5.744) is slightly higher than the industry average of (2.780).
The Tickeron PE Growth Rating for this company is 28 (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 52 (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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Fundamental Analysis Ratings
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General Information
a holding company which produces and markets tobacco products
Industry Tobacco
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