5 Best Hemp Stocks To Buy Now

1. Altria Group, Inc. (NYSE:MO)

Number of Hedge Fund Holders: 47

Altria Group, Inc. (NYSE:MO) is one of the world’s largest producers and marketers of tobacco, cigarettes, and more recently due to a strategic investment in Cronos Group (NASDAQ:CRON), cannabis and hemp-related products.

On September 30, Bank of America analyst Lisa Lewandowski maintained Buy ratings on Altria Group, Inc. (NASDAQ:MO), despite setbacks due to the ban of IQOS tobacco sticks.

By the end of the second quarter of 2021, 47 hedge funds out of the 873 tracked by Insider Monkey held stakes in Altria Group, Inc. (NYSE: MO) worth roughly $948 million. This is compared to 38 hedge funds in the previous quarter with a total stake value of approximately $1.1 billion.

Out of the hedge funds being tracked by Insider Monkey, Chicago-based Harris Associates is a leading shareholder in Altria Group, Inc. (NYS:MO), with over 5.1 million shares worth more than $243.3 million.

In the Q2 2021 investor letter of Broyhill Asset Management, the fund mentioned Altria Group, Inc. (NYSE:MO). Here is what the fund had to say:

“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.

MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”

See also 10 Best Healthcare Dividend Stocks and 12 Best Telemedicine Stocks To Buy.

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