Market Overview

Altria Group Inc Stock Edges Closer To Profit-Taking Time

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Altria Group Inc Stock Edges Closer To Profit-Taking Time
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Altria Group Inc (NYSE: MO) shares have performed just as the technical crowd thought they would on September 3.

At that time, they thought a breakout above the previous resistance of $43.70 would occur and that a continued move to the upper edge of the long-term uptrend channel at $46 to $48 would play out.

So far, they got their breakout and a part of the expected move higher, and now, technicians say there's no reason to believe Altria shares won't make it up to the forecasted range.

At this point, they note that it looks like the resistance area will come in at around $46, unless Altria takes its time reaching the trend line from here.

Related Link: Amazon Technical Picture Is Bullish Short Term, Bearish Overall

Bullish Points

• Enterprise value is greater than market capitalization.

• Strong profit margins and huge levered free cash flow on an annual basis are also attractive.

Bearish Points

• Altria does not look cheap if measured by price-to-sales (4.81), price-to-book (19.81) or price-to-earnings (15.58) ratios.

Overall…

Altria looks like it may make the rest of the climb up to the $46 - $47 projected target range.

At that point, it's possible a good percentage of longs will trim their holdings, or exit the stock altogether and wait for a re-entry point in the mid to upper $30s.

Disclosure: At the time of this writing, the author had no position in the equities mentioned in this report.

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Posted-In: altria technical analysisTechnicals Trading Ideas

 

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