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    Solid Upside Remains For Altria

    Sat, 07/14/2012 - 14:12 EDT - Seeking Alpha
    • MO
    • Stock Gamer

    By Stock Gamer:Shares of Altria Group (MO) have returned 32.42% over the last 12 months amid a volatile market condition, reflecting the investment's very defensive nature. At $35.62 per share, MO trades at 10.8 times the NTM EBITDA and 15.9 times the NTM EPS. Despite the stellar 12-month performance, I still believe the current valuations remain very compelling relative to the firm's strong fundamentals. Thus MO deserves a spot in your dividend portfolio. My view is based on the following five reasons:1. Compared to its peers in the tobacco sector, MO has a better growth potential -- especially for its EPS, which is estimated to rise by a two-year CAGR of 19.3% over the current and next fiscal years (see below). The firm also has superior profitability margins and investment returns. In addition, its FCF margin is the highest among the group, and the above-average current and quick ratios reflect aComplete Story »

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