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Technical analysis

Altria Group Inc - Chart Analysis - Week Ahead 19th December 2022

Altria Group

Check out the trading idea of the week below, by your friendly, neighbourhood market analyst!

Trading Idea of the Week

NYSE:MO - Altria Group Inc - (BULLISH - long term & BULLISH - short term)

  • Key levels on the chart - consider taking trades from key support/resistance zones. 
  • With increased health awareness, tobacco usage has relatively declined over the years as smokers continue to quit. However, the U.S. remains a leading tobacco producer globally. Moreover, in 2022, the value of the global tobacco market amounted to around $912 billion.

  • The lockdown-induced stress has also led to increased consumption among many, and the industry is benefiting from this new habit. Companies spend substantially on marketing campaigns that have produced considerable results and help in remaining competitive.

  • Moreover, amid rising awareness regarding the ill effects of its consumption, new nicotine products, also referred to as Next-generation Products (NGP), are being introduced that are significantly less harmful than conventional products. The global tobacco market is expected to expand at a CAGR of 2.4% from 2022 to 2030.

  • In addition, tobacco leaves are relevant for several medicinal purposes. Also, organic tobacco usage has gained substantial popularity over the past years. According to Report Ocean, the global tobacco market is projected to grow at a CAGR of 6.7% until 2027.

  • On October 27, 2022, MO signed a strategic alliance with JT Group. This collaboration is expected to expand MO's current tobacco product offering.

  • MO has paid dividends for 52 consecutive years. Over the last three years, MO's dividend payouts have grown at a 3.96% CAGR. While MO's four-year average dividend yield is 7.35%, its current dividend translates to a 7.89% yield.

 


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