Important note

This AI stock analysis for Altria is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Altria - AI Stock Analysis

Analysis generated September 21, 2024

Altria Group, Inc., headquartered in Richmond, Virginia, is one of the world's largest producers and marketers of tobacco and cigarettes. The company's subsidiaries include well-known brands such as Marlboro, America's leading cigarette brand. In addition to its tobacco products, Altria has a significant stake in the alcohol and cannabis industries through its investments in companies like Anheuser-Busch InBev and Cronos Group.

Fundamental Analysis

Altria’s revenue for the last quarter was $6.21 billion, representing a 16.67% increase compared to the preceding quarter. This is a positive sign indicating short-term growth. However, when compared to the same quarter last year, the revenue decreased by 0.67%, which might be a cause for concern about stagnation or market competition.

Net income for the last quarter was $3.8 billion, representing a significant increase of 78.63% compared to the previous quarter. Year over year, net income has grown by 79.64%, showcasing robust bottom-line growth and effective cost management.

However, the EBITDA for the last quarter was $2.57 billion, a decrease of 4.85% compared to the last quarter, and a 12.35% decrease compared to the same quarter last year. While the decline in EBITDA might signal increased operating expenses or reduced operational efficiency, other factors could be contributing to this variance as well.

The current Price-to-Earnings (P/E) ratio is 8.73. This relatively low P/E ratio may suggest that the stock is undervalued, presenting a potentially lucrative investment opportunity if the company's earnings prospects are sound.

Technical Analysis

The current stock price of Altria stands at $50.39, which represents a 2.74% decrease compared to a month ago. However, on an annual scale, the stock price has increased by 27.47%, indicating a positive long-term trend.

The current Simple Moving Average for 10 days (SMA10) is $51.54, compared to the previous SMA10 of $51.81, suggesting a potential downward price trend. The Relative Strength Index (RSI) is 45.1, indicating a neutral condition with tendencies towards neither being overbought nor oversold.

Alternative Data Analysis

Job postings for Altria stand at 41, marking a 273% increase in the last couple of months. This indicates that the company is aggressively expanding, which is generally a positive sign.

Employee sentiment towards the business outlook remains neutral, which may indicate general satisfaction but not exceptional optimism.

Altria's website has garnered an estimated 150,000 visitors, up 44% over the last few months. This spike in web traffic is a bullish indicator that may reflect increased customer interest and potential customer acquisition.

On social media, Altria has 41 followers on Instagram and 10,000 followers on Twitter, with no meaningful changes in recent months, indicating stable but unremarkable customer engagement.

Altria has an AI score of 67 from AltIndex, which is considered a buy signal. This score aggregates fundamental, technical, and alternative data to provide a holistic evaluation of the stock's future performance.

Conclusion and Recommendation

Altria presents a mixed but overall positive outlook given the various metrics considered. The strong year-over-year growth in net income and significant recent increase in revenue suggest that the company is performing well financially. Despite a slight but notable dip in EBITDA, Altria’s low P/E ratio and upward trend in stock price, particularly over the past year, indicate potential undervaluation and room for growth.

The bearish short-term trend and neutral RSI provide caution, suggesting potential short-term volatility. However, alternative data reflects positive expansion efforts and increasing customer interest, which bodes well for future performance.

Given these factors, the recommendation is to consider Altria as a buy, particularly for those with a long-term investment horizon looking to capitalize on its current undervaluation and growth potential.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.