Cramer's Lighting Round: 'I'm not going to recommend' Altria
Thursday, Nov 14, 2024 7:05 pm ET
4min read In a recent episode of "Mad Money," Jim Cramer, the outspoken host, shared his thoughts on Altria (MO) during his Lightning Round segment. Cramer's stance on the tobacco giant was clear: "I'm not going to recommend Altria because I'm not going to recommend tobacco stocks...I just don't think I should recommend something that is so bad for you." This article delves into the reasons behind Cramer's decision, Altria's financial performance, and the potential impact of regulatory risks on the company's future.
Cramer's ethical investing stance is well-known, and his decision to avoid recommending Altria aligns with his focus on social responsibility. However, a closer look at Altria's financial performance and strategic initiatives reveals a company that may warrant a second thought.
Altria's revenue and earnings growth trajectory has been volatile, with a 0.90% decrease in revenue in 2023 compared to the previous year, despite a 41.07% increase in earnings. This inconsistency may contribute to Cramer's decision not to recommend the stock. However, Altria's dividend history and yield are impressive, with a 7.5% forward dividend yield, higher than the sector average.
Analysts' price targets and ratings for Altria vary, with an average rating of "Hold" and a 12-month price forecast of $51.33, indicating a -7.33% decrease from the latest price. While some analysts share Cramer's caution, Altria's strong financial performance and shift towards smoke-free products have drawn positive attention from others.
Altria's strategic initiatives, such as expanding its smoke-free product portfolio, have shown promise. The company's NJOY and on! brands have seen significant growth, with device shipments for NJOY tripling in Q3 2024. This strategic shift towards reduced-risk products indicates Altria's commitment to evolving its portfolio, which could potentially change Cramer's stance on the company's future prospects.
Regulatory risks, such as potential FDA restrictions on e-cigarettes, remain a significant concern for Altria. The FDA's ongoing review of e-cigarettes and potential restrictions on flavors and marketing could impact Altria's growth trajectory. As of November 14, 2024, Altria's stock price was $55.25, with a 12-month forecast of $51.33, indicating a potential 7.33% decrease.
In conclusion, Cramer's decision not to recommend Altria is rooted in his ethical investing stance and concerns about the tobacco industry's negative health implications. However, Altria's strong financial performance, impressive dividend history, and strategic shift towards smoke-free products suggest that the company may be a stable, lucrative investment for those seeking consistent growth. As always, investors should conduct thorough research and consider their personal risk tolerance before making investment decisions.
Cramer's ethical investing stance is well-known, and his decision to avoid recommending Altria aligns with his focus on social responsibility. However, a closer look at Altria's financial performance and strategic initiatives reveals a company that may warrant a second thought.
Altria's revenue and earnings growth trajectory has been volatile, with a 0.90% decrease in revenue in 2023 compared to the previous year, despite a 41.07% increase in earnings. This inconsistency may contribute to Cramer's decision not to recommend the stock. However, Altria's dividend history and yield are impressive, with a 7.5% forward dividend yield, higher than the sector average.
Analysts' price targets and ratings for Altria vary, with an average rating of "Hold" and a 12-month price forecast of $51.33, indicating a -7.33% decrease from the latest price. While some analysts share Cramer's caution, Altria's strong financial performance and shift towards smoke-free products have drawn positive attention from others.
Altria's strategic initiatives, such as expanding its smoke-free product portfolio, have shown promise. The company's NJOY and on! brands have seen significant growth, with device shipments for NJOY tripling in Q3 2024. This strategic shift towards reduced-risk products indicates Altria's commitment to evolving its portfolio, which could potentially change Cramer's stance on the company's future prospects.
Regulatory risks, such as potential FDA restrictions on e-cigarettes, remain a significant concern for Altria. The FDA's ongoing review of e-cigarettes and potential restrictions on flavors and marketing could impact Altria's growth trajectory. As of November 14, 2024, Altria's stock price was $55.25, with a 12-month forecast of $51.33, indicating a potential 7.33% decrease.
In conclusion, Cramer's decision not to recommend Altria is rooted in his ethical investing stance and concerns about the tobacco industry's negative health implications. However, Altria's strong financial performance, impressive dividend history, and strategic shift towards smoke-free products suggest that the company may be a stable, lucrative investment for those seeking consistent growth. As always, investors should conduct thorough research and consider their personal risk tolerance before making investment decisions.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.