Should You Consider Buying Altria Stock Before Q3 Earnings Release?

Altria Group, Inc. (MO) is scheduled to report its third-quarter 2025 earnings on Oct. 30, before market open.The Zacks Consensus Estimate for third-quarter revenues stands at $5.32 billion, indicating a 0.4% dip from the same period last year. The consensus mark for earnings has remained unchanged in the past 30 days at $1.44 per share, which, however, indicates 4.4% growth from the year-ago quarter’s reported figure.Altria has a trailing four-quarter average earnings surprise of 3.3%. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 5.1%.Altria Group, Inc. Price, Consensus and EPS Surprise Altria Group, Inc. price-consensus-eps-surprise-chart | Altria Group, Inc. QuoteWhat the Zacks Model Predicts About MO’s Q3 EarningsAs investors prepare for Altria’s quarterly announcement, the question looms regarding earnings beat or miss. Our proven model doesn’t conclusively predict an earnings beat for MO this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.Altria has a Zacks Rank #2 but an Earnings ESP of -0.04% at present. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.What’s Shaping Altria’s Q3 Earnings?Strong pricing power, disciplined cost management and continued momentum of its smoke-free initiatives are likely to fuel Altria’s third-quarter 2025 results. We note that the company has been witnessing volume softness in the traditional cigarette category as adult consumers continue to face inflationary pressures and trade down to discount options. However, Altria’s robust pricing actions and strategic portfolio management are expected to more than offset volume weakness on the earnings front.A key driver behind Altria’s earnings resilience remains its high-margin oral tobacco business, anchored by the strong growth of on! nicotine pouches. The brand’s solid shipment gains, growing market share and profitability improvement have played a vital role in expanding segment operating margin. Continued consumer engagement through event activations and digital marketing is expected to have supported brand equity and repeat usage, enhancing the company’s performance in the quarter under review.MO’s Price PerformanceOver the past three months, Altria stock has advanced 7.4%, outperforming the Zacks Tobacco industry’s breakeven performance and the Zacks Consumer Staples sector’s decline of 3.6%. However, MO trailed the S&P 500’s 8% growth during the same period. In the said time frame, Altria outpaced Philip Morris International Inc. (PM) and British American Tobacco p.l.c. (BTI) while underperforming Turning Point Brands, Inc. (TPB). Philip Morris and British American Tobacco have declined 5.9% and 1.3%, respectively, whereas shares of Turning Point Brands have rallied 11.5% over the past three months.Image Source: Zacks Investment ResearchAltria’s Valuation PictureFrom a valuation perspective, Altria shares are trading at a discount relative to the industry average. With a forward 12-month price-to-earnings ratio of 11.49, below the industry’s average of 14.49, the stock offers compelling value for investors seeking exposure to the sector.Image Source: Zacks Investment ResearchThis valuation gap becomes even more pronounced when compared to key competitors. Philip Morris International trades at a P/E ratio of 18.66, while Turning Point Brands stands at 23.94, both significantly higher than Altria’s multiple. In contrast, British American Tobacco trades at a slightly lower P/E of 10.96.How Should Investors Play MO Stock Now?Altria has been performing well using strong pricing strategies and expanding its smoke-free products, especially the fast-growing on! nicotine pouches. The company also looks attractive from a value perspective, as it trades at a lower P/E than most of its peers. With steady earnings growth, solid cash flow and ongoing smoke-free innovation, Altria stands out as a reliable choice for those seeking stability and long-term returns in the consumer staple space.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Altria Group, Inc. (MO): Free Stock Analysis Report Philip Morris International Inc. (PM): Free Stock Analysis Report British American Tobacco p.l.c. (BTI): Free Stock Analysis Report Turning Point Brands, Inc. (TPB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks