Is Altria Group Too Cheap to Ignore at Today's Price?
Take one quick look at the stock on a screener, and you may think "undervalued" is an apt description for Altria Group (NYSE: MO).
The company, which sells Marlboro cigarettes in the United States, has a low forward price-to-earnings ratio (P/E) and a high forward dividend yield and looks very cheap today. But don't underestimate how much "cheaper" shares could get in the months ahead.
It all has to do with Altria Group's "smoke-free strategy" -- or rather its lack of success so far with such a plan, to be blunt. Concerns remain high that this cigarette company has become at best a "cigar butt" investment (a Warren Buffett term for a troubled-asset stock) and at worst a value trap.
Source Fool.com
