Altria Group (NYSE: MO) has been a standout stock for decades, delivering an incredible total return of 124,000% since 1990. However, the stock has lagged the market by nearly 25% this year, presenting a unique buying opportunity for investors looking to get in on the action.
There are two compelling reasons why Altria stock is a buy right now. Firstly, the stock is trading at a rare bargain compared to the overall market. With the S&P 500 trading at nearly 28 times earnings, Altria is a steal at just 9.1 times earnings. The company’s strong free-cash-flow yield of 11.6% and generous dividend yield of 9% make it an attractive investment option.
Secondly, Altria is a great choice for investors worried about market volatility. The stock has historically outperformed during bear markets, losing only 5% of its value during the 2007-2009 financial crisis. With recession-resistant products and a stable dividend, Altria is well-positioned to weather market downturns.
Despite recent underperformance, Altria stock is a solid investment opportunity for those looking for value and stability in their portfolio. With the potential for double-digit returns and a track record of weathering market storms, Altria is a stock worth considering for investors of all stripes.
