Altria Group Inc (MO): Has Lorillard Inc. (LO) Become the Perfect Stock?

Still, Lorillard Inc. (NYSE:LO) has managed to avoid some of the worst of the damage. Reynolds and Altria Group Inc (NYSE:MO) both announced layoffs over the past couple of years in response to sales declines. Lorillard has managed to maintain an advantage over Altria Group Inc (NYSE:MO) by selling both premium and discounted brands, catering both to high-end customers and those struggling to afford cigarettes at all. What’s particularly impressive is that Lorillard has done so while still keeping its margins nearly as high as Altria Group Inc (NYSE:MO)’s, despite Altria’s greater reliance on premium brands.

For Lorillard to improve, it needs to win smokers from competing brands. Without that revenue boost, Lorillard likely won’t ever get the final points it needs to reach perfection.

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No stock is a sure thing, but some stocks are a lot closer to perfect than others. By looking for the perfect stock, you’ll go a long way toward improving your investing prowess and learning how to separate out the best investments from the rest.

The article Has Lorillard Become the Perfect Stock? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned, and neither does The Motley Fool.

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