Key statistics

Is MO a good stock to buy in 2026?

MO stock shows a mixed picture for investors in 2026. While its discounted cash flow suggests a significant 60.0% undervaluation with a fair value of $111.04, its P/E ratio of 14.42x appears high when compared to the sector average of 0x, indicating a premium. Despite this, a strong 61.5% of analysts rate MO a “Buy,” with a consensus price target indicating moderate upside.

2026 MO price scenarios

Based on analyst consensus of $71.67 from 26 analysts. Not a prediction by Alert Invest.

About Altria Group, Inc. (MO)

Altria Group, Inc., through its subsidiaries, manufactures and sells smokeable and oral tobacco products in the United States. The company provides cigarettes primarily under the Marlboro brand; cigars and pipe tobacco principally under the Black & Mild brand; and moist smokeless tobacco products under the Copenhagen, Skoal, Red Seal, and Husky brands, as well as provides on! oral nicotine pouches. It sells its tobacco products primarily to wholesalers, including distributors; and large retail organizations, such as chain stores.

William F. Gifford Jr. leads Altria Group as CEO, overseeing approximately 5,900 dedicated employees. The company’s distinctive strengths lie in its dominant market share in the U.S. tobacco industry, particularly with the iconic Marlboro brand, and its strategic investments in harm reduction products like on! oral nicotine pouches. This dual focus allows Altria to maintain strong cash flows from traditional products while positioning for future growth in evolving consumer preferences.

MO competitive moat and business analysis

Altria Group (MO) possesses a substantial competitive moat rooted in its brand equity, particularly with Marlboro, and its extensive distribution network across the United States. Its impressive net margin of 36.91% highlights its pricing power and efficient operations, even in a challenging regulatory environment. While ROE is N/A, the company’s consistent Free Cash Flow (FCF) yield of 7.44% demonstrates its ability to generate significant cash, a key indicator of financial health and an enduring business model.

Altria’s revenue streams primarily derive from its smokeable products, led by Marlboro cigarettes, and a growing portfolio of oral tobacco products including moist smokeless tobacco brands like Copenhagen and Skoal, alongside on! oral nicotine pouches. The data indicates that segment information is available for fiscal year 2025 as `[(‘symbol’, ‘MO’), (‘fiscalYear’, 2025), (‘period’, ‘FY’), (‘reportedCurrency’, ‘USD’), (‘date’, ‘2025-12-31’)]`, focusing on these core product categories within the U.S. market, with no specific geographic breakdown provided.

The competitive moat for MO stock is currently facing challenges due to a -1.5% year-over-year revenue decline, indicating a contraction in its traditional market. This trend necessitates a pivot towards next-generation products to sustain long-term growth. Without a specific transcript quote, it’s evident that the company’s future hinges on its ability to innovate and successfully transition consumers to reduced-harm alternatives, which is crucial for the ongoing MO valuation narrative.

When evaluating MO stock against its peers, understanding its relative strengths and weaknesses is key. Investors often compare Altria to companies like British American Tobacco (BTI), Anheuser-Busch InBev (BUD), and Colgate-Palmolive (CL). While BTI operates in the same tobacco sector, BUD and CL represent broader consumer defensive industries. A comparative analysis, such as that found in MO vs BTI, MO vs BUD, and MO vs CL, helps investors gauge MO’s standing in terms of market position, growth trajectory, and valuation metrics within its competitive landscape.

Altria Group, Inc. analyst rating

Based on 26 analysts. 61.5% rate MO Buy or Strong Buy.

A 61.5% “Buy” rating for a Consumer Defensive stock like Altria is generally considered robust, indicating a strong positive sentiment from the analyst community despite industry challenges. This consensus suggests confidence in the company’s resilience and its strategic transition efforts.

Is MO undervalued or overvalued?

Assessing the MO valuation reveals a complex picture. The stock currently trades at a P/E ratio of 14.42x, which stands in stark contrast to the sector average of 0x, suggesting that the market is assigning a premium to Altria relative to its industry. This premium might be attributed to its stable cash flows and significant dividend yield, but it also warrants careful scrutiny for investors considering if MO stock is overvalued.

However, a Discounted Cash Flow (DCF) analysis estimates a fair value for MO stock at $111.04, representing a substantial 60.0% upside compared to its current price. This indicates that, from a fundamental perspective, Altria may be significantly undervalued despite its P/E multiple. The P/B ratio of -36.15x further complicates a simple valuation, often signaling unique balance sheet structures or intangible assets characteristic of tobacco firms.

MO financial health & key metrics

For value investors evaluating if MO is a good stock, Altria presents a compelling yet nuanced financial profile. While its impressive net margin of 36.91% and strong Free Cash Flow yield of 7.44% highlight operational efficiency and robust cash generation, the negative revenue growth of -1.5% suggests underlying challenges in its core markets. The negative Debt/Equity ratio, while unusual, is interpreted as low debt in the scorecard, coupled with a significant DCF undervaluation of $111.04, could appeal to investors seeking deep value despite current P/E premium relative to the sector.

Altria Group, Inc. earnings history & next report

Altria Group, Inc. reported EPS of $1.32, beating estimates by 5.6%. Next earnings: 2026-07-30 with EPS estimate of $1.48.

Altria Group, Inc. recently reported strong earnings, with an EPS of $1.32, which successfully beat analyst estimates by 5.6%. Looking ahead, investors in MO stock should closely monitor the next earnings call scheduled for 2026-07-30, where analysts anticipate an EPS of $1.48. Key areas to watch will be performance in its non-combustible product portfolio, any updates on regulatory developments, and management’s commentary on future revenue trajectory to gauge the sustainability of its dividend and overall MO valuation.

MO daily short volume

Short volume data from FINRA CNMS Consolidated — shares sold short in the most recent US trading session. A high short ratio can signal bearish conviction or a potential short squeeze. Updated every trading day.

MO insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent MO analyst rating changes

Altria Group, Inc. stock news today

How does MO compare to its peers?

Understanding Altria Group, Inc.’s (MO) position within the broader Consumer Defensive sector requires a look at its peers. While MO stock is primarily a tobacco giant, comparing it to other established consumer staples companies provides valuable context for MO valuation, market strength, and potential growth avenues. Key competitors in this space offer a diverse perspective on market dynamics and investor sentiment.

FAQ — Altria Group, Inc. (MO) stock