10 Best Tobacco and Cigarette Stocks to Buy Now

2. Altria Group, Inc. (NYSE:MO)

Number of Hedge Fund Holders: 47

Altria Group, Inc. (NYSE:MO) is one of the Best Tobacco Stocks headquartered in Virginia. It produces a variety of connected goods, such as cigarettes and other products that contain nicotine. The company’s business model tends to endure well in times of market and economic turmoil, and it also specializes in nicotine products. The US is seeing a decline in traditional cigarette consumption, but overall demand for nicotine is still stable. The business has a lot of advantages because it owns about half of the US market. These include cost savings from its size, significant bargaining power with retailers since it owns popular brands like JUUL and Marlboro, and the capacity to make larger investments than rivals in more recent nicotine substitutes, including smokeless products.

Altria Group, Inc. (NYSE:MO) reported $5.11 billion in revenue for the last quarter of 2024, a 1.63% year-over-year gain that was $59.6 million higher than analyst projections. Improved margins and strong performance across its main tobacco brands helped to fuel the expansion. Furthermore, the business kept investing in projects that promote long-term growth. It projects adjusted diluted EPS for 2025 to range from $5.22 to $5.37, representing a 2% to 5% growth over its 2024 earnings of $5.12 per share.

Citi increased its target price for Altria Group, Inc. (NYSE:MO) from $52 to $55. Given the challenging U.S. environment and NJOY’s delisting, the company anticipates a “weak” first quarter for the firm. Citi, however, sees “solid On!” volume growth.