2016-08-18 14:47:35

Altria Group Inc., #MO [NYSE]
Consumer goods, Cigarette production, USA

Financial performance:

Index – S&P 500; Beta – 0.51;
Capitalization - 121.98 В;
Assets Profitability - 19.10%;
Revenue - 5.24В; Average volume – 6.36 М;
P/E - 23.00; ATR – 1.08.

Analytical review:

  • The Company has the second biggest capitalization in the cigarette production sector of the US stock market.
  • At the end of July the tobacco giant published a corporate report on the second quarter of the fiscal year 2016. The company's revenue didn't live up to market expectations of 5.03 billion USD, amounting to 4.90 billion USD. However, Altria Group Inc. announced that its net profit had grown 9.5% to $0.81 per share, which is slightly higher than a forecast value of $0.80 per share.
  • The company's management expects that profits will grow 7.5%-9.5% to $3.01-$3.07 per share this fiscal year.
  • The P/E ratio is another driver that points to eventual increase in Altria Group's cost. #MO P/E Ratio (23.00) is significantly lower than an average P/E for this industry (37.16) and the sector (43.84), which suggests a possibility of further growth in the company's rates.
  • Technical analysis indicates a possibility of further growth as well. One of the strongest reversal patterns of technical analysis - price and MACD divergence - has formed on the H1 chart.
  • In mid-June, big investment companies Stifel and Berenberg upgraded the ranking of Altria Group and updated the target cost of the company’s stock to 71-74 USD.


  • The latest report proves that the company's management has been working properly. Altria Group's profit improved and exceeded market expectations. Financial multipliers and technical analysis suggest a possibility of further growth in the tobacco giant's cost. Large investment funds forecast a positive trend for the company's shares.
  • Thus, we expect that the company's quotes will be rising in the nearest future.

Trading tips for Altria Group Inc.'s CFDs

Key levels:
Support levels: 66.15 USD, 65.00 USD
Resistance levels: 67.30 USD, 68.00 USD, 68.85 USD

Medium-term trading, H1
the issuer is currently trading at a support level of 66.15 USD. Once this level steadies and relevant confirming signals appear (Price/Action patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 67.50 USD, 68.00 USD and 68.80 USD, with Trailing Stop applied.

Medium-term trading, H1
Medium-term trading, H1

Short-term trading, M15
The issuer is currently trading between the local support and resistance levels of 66.40/66.75 USD. We advise you to search for market entry points once these levels are broken and tested. Positions shall be opened in the direction of the signal line and the nearest support/resistance level. Risk per trade: no more than 3% of equity. Stop order shall be placed a bit above/below the signal line. Prospective profits shall be fixed partly, at 50%, 30%, and 20% of a prospective fluctuation, with Trailing Stop applied.

Short-term trading, M15
Short-term trading, M15