While some tobacco companies might be affected by the Biden administration’s potentially tougher regulations on nicotine content in cigarettes, Altria (MO) is favorably positioned to thrive thanks to its diversified portfolio of products. So, because the stock has declined lately on overall negative sentiment about the tobacco industry, we think now could be a good investment entry opportunity into MO. Read on.Shares of Fortune 200 company Altria Group , Inc. (NYSE:MO) have s gained 19.8% over the past year. The company manufactures and sells cigarettes, oral tobacco products and wine through its subsidiaries, which include Philip Morris (NYSE:PM) USA Inc., John Middleton Co. and UST LLC. And, as the tobacco industry attempts to change for the better, MO is increasing its focus on harm reduction and informed consumer choice.
MO’s stock has declined 9.4% since hitting its peak of $52.38 on April 16 on the rumors that the Biden administration may introduce tougher tobacco-company regulations. However, thanks to its diversified portfolio, the stock is expected to rebound in the coming months.
So, we think the price dip has created a perfect buying opportunity for investors. Furthermore, MO has authorized a $2 billion share repurchase program, which is expected to be completed by June 30, 2022.