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Why Altria Is Poised to Outperform

By Brian D. Pacampara, CFA - Apr 2, 2013 at 4:43PM

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Market-trouncing returns could be written in this 5-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, tobacco giant Altria (MO -3.97%) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Altria and see what CAPS investors are saying about the stock right now.

Altria facts

 

 

Headquarters (founded)

Richmond, Va. (1919)

Market Cap

$69.5 billion

Industry

Tobacco

Trailing-12-Month Revenue

$17.5 billion

Management

Chairman/CEO Martin Barrington

President/COO David Beran

Return on Capital (average, past 3 years)

25.2%

Cash/Debt

$2.9 billion/$13.9 billion

Dividend Yield

5.1%

Competitors

Lorillard 

Reynolds American 

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 8,967 members who have rated Altria believe the stock will outperform the S&P 500 going forward.

Earlier this year, one of those Fools, brenoboyle, succinctly summed up the Altria bull case for our community:

Excellent dividend yield, pricing power has led to consistent shareholder returns over time. Most attractively priced relative to peers and 27% voting interest in SABMiller that the market does not seem to be giving credit for.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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Stocks Mentioned

Altria Group, Inc. Stock Quote
Altria Group, Inc.
MO
$51.09 (-3.97%) $-2.11

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

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