Please ensure Javascript is enabled for purposes of website accessibility

Why Altria Group Stock Gained 11% in November

By Demitri Kalogeropoulos - Dec 9, 2019 at 9:39AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors were pleased with the tobacco giant's third-quarter numbers.

What happened

Altria Group (MO 0.00%) stock rose 11% last month according to S&P Global Market Intelligence, outpacing the market as measured by the S&P 500's 3.4% gain. That increase still left its performance well behind those of the broader indexes for the year, but it did push the tobacco giant, which had been down by as much as 15% in 2019, back into positive territory. The stock's high dividend payment contributed to further gains for shareholders.

A woman smoking.

Image source: Getty Images.

So what

November's rise followed a generally strong third-quarter report that was released on the final trading day of October. The tobacco giant revealed a 2% revenue increase along with modest declines in cigarette volumes. Altria also took a massive writedown charge related to its investment in electronic cigarette company Juul Labs.

Now what

The results demonstrated the power of Altria's selling model, with adjusted earnings per share rising 10% last quarter. Cigarette price increases are likely to keep its earnings rising into 2020, too, management says, despite an expected 6% slide in annual sales volume. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Altria Group, Inc. Stock Quote
Altria Group, Inc.
MO
$51.09 (0.00%) $0.00

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.