Altria Group (MO) reported strong third-quarter results, with earnings of 48 cents per share. Earnings were 2 cents above the Zacks Consensus Estimate and up 4.3% year-over-year. Profits were primarily driven by the company’s cost savings efforts and growth in the cigar unit. Net revenues increased 20.3% year-over-year to $6.3 billion, primarily driven by cigar segment results that increased 56.1%. The cigarette segment revenues increased only 10.7% for the quarter, as it was impacted by higher pricing related to the Apr 1, 2009, federal excise tax (FET) increase. Altria’s smokeless products segment posted revenues of $352 million. Altria had acquired UST and its smokeless tobacco business, USSTC, on Jan 6, 2009. (As a result, financial results are from Jan 6 through Sep 30, 2009). Total industry cigarette shipments declined approximately 10%, as expected, while cigarette shipments for the company declined 16.4% after adjustments in trade inventories. ...

For Immediate Release

Chicago, IL – July 13, 2009 – Zacks.com announces the latest Industry Outlook. Today’s outlook from Zacks Equity Research analyst Steven Ralston discusses the Consumer Staples sector. Highlighted stocks include: Altria (MO) and Reynolds American (RAI).

Here is the latest on the Consumer Staples sector:

Additional regulation of tobacco products by the U.S. Federal Government is now expected. On June 8, 2009, the U.S. Senate again passed legislation, empowering the U.S. Food and Drug Administration (FDA) to regulate cigarettes and other tobacco products. Over the last several years, the House had not passed a similar bill, but in April, the House finally passed a comparable measure, indicating a more stringent regulatory framework for all domestic tobacco companies in the future.

The tobacco companies are losing product liability law suits. In late March 2006, the U.S. Supreme Court refused to hear an appeal

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The stock market has begun to discount a recovery from the global recession. Prior rallies after major declines of similar magnitude (such as after the recession in the mid-1970Õs and the Great Depression in the 1930Õs) were sharp and unrelenting.

It is expected that stocks in the Consumer Staples sector will underperform as cyclical stocks begin to discount the recovery out of the current global economic recession.

OPPORTUNITIES

Stocks in the Consumer Staples sector have traditionally performed better than the stock market, and especially cyclical companies, during market declines. The fundamental explanation is that food, beverage, household products and cosmetics companies manufacture and market brand name consumable products, most of which are considered essential to daily life, such as food, drink, toothpaste, deodorants, toilet paper, etc.

Since product demand is relatively stable, the companies should report earnings in line with expectations and, hence, the stocks have outperformed. Generally speaking, food companies generate earnings growth

...

The stock market has begun to discount a recovery from the global recession. Prior rallies after major declines of similar magnitude (such as after the recession in the mid-1970Õs and the Great Depression in the 1930Õs) were sharp and unrelenting.

It is expected that stocks in the Consumer Staples sector will underperform as cyclical stocks begin to discount the recovery out of the current global economic recession.

OPPORTUNITIES

Stocks in the Consumer Staples sector have traditionally performed better than the stock market, and especially cyclical companies, during market declines. The fundamental explanation is that food, beverage, household products and cosmetics companies manufacture and market brand name consumable products, most of which are considered essential to daily life, such as food, drink, toothpaste, deodorants, toilet paper, etc.

Since product demand is relatively stable, the companies should report earnings in line with expectations and, hence, the stocks have outperformed. Generally speaking, food companies generate earnings growth

...

The stock market has begun to discount a recovery from the global recession. Prior rallies after major declines of similar magnitude (such as after the recession in the mid-1970’s and the Great Depression in the 1930’s) were sharp and unrelenting. It is expected that stocks in the Consumer Staples sector will underperform as cyclical stocks begin to discount the recovery out of the current global economic recession. OPPORTUNITIES Stocks in the Consumer Staples sector have traditionally performed better than the stock market, and especially cyclical companies, during market declines. The fundamental explanation is that food, beverage, household products and cosmetics companies manufacture and market brand name consumable products, most of which are considered essential to daily life, such as food, drink, toothpaste, deodorants, toilet paper, etc. Since product demand is relatively stable, the companies should report earnings in line with expectations and, hence, the stocks ...

One bill after the other is being passed for the prevention of tobacco and its ill effects on consumers. Recently, ‘The Family Smoking Prevention and Tobacco Control Act’ was signed by President Obama, primarily to prevent the teenagers from becoming addicted to tobacco. The new act gives full authority to the Food and Drug Administration (FDA) to regulate the amount of nicotine in tobacco products, along with imposing a ban on candy flavored and other flavored cigarettes, primarily as the flavored cigarettes are considered to be more appealing to first-time smokers. The Act also requires that tobacco companies should block labels such as ‘low tar’ and ‘light’ and cover the cigarette cartons with large graphic warnings against smoking. The signing of the new bill marks an important history in the regulation of tobacco, as approximately 20% of Americans smoke and about 440,000 people in the U.S. die ...

The second quarter of 2009 was filled with gains and plenty of plain. After looking at the quarter’s winners and losers, one thing is obvious, biotechs can make or break your portfolio.

Sometimes the best way to see where you are going is to look where you have been. Of course every financial commentator always covers his backside by telling you “past performance is not an indication of future returns,” just as he whips out charts of historic action.

With the second quarter in the history books, we can learn who were the winners and the losers and work to uncover any important patterns or indicators. The results may be surprising.

I will start with the top three gainers, all listed on the Nasdaq exchange.

Dendreon (NASDAQ:DNDN) wins top honors with a quarterly gain of 495%. The biotech company that was trading for just $2.55 per share in March is now

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For Immediate Release

Chicago, IL - June 12, 2009 - Zacks.com releases the latest Industry Outlook. Today's interview is with senior analyst Steven Ralston, who talks about the Consumer Staples Industry, including Altria (MO) and Reynolds American (RAI).

A synopsis of today's Industry Outlook is presented below. The full article can be read at http://at.zacks.com/?id=2678.

Additional regulation of tobacco products by the U.S. Federal Government is now expected. On June 8, 2009, the U.S. Senate again passed legislation, empowering the U.S. Food and Drug Administration (FDA) to regulate cigarettes and other tobacco products. In the last several years, the House had not passed a similar bill, but in April, the House finally passed a comparable measure, indicating a more stringent regulatory framework for all domestic tobacco companies in the future.

The tobacco companies are losing product liability law suits. In late

...

The stock market has begun to discount a recovery from the global recession. Prior rallies after major declines of similar magnitude (such as after the recession in the mid-1970's and the depression in the 1930's) were sharp and unrelenting. It is expected that stocks in the Consumer Staples sector will underperform as cyclical stocks discount the recovery.

OPPORTUNITIES

During market declines, stocks in the Consumer Staples sector have traditionally performed better than the stock market, and especially cyclical companies. The fundamental explanation is that food, beverage, household products and cosmetics companies manufacture and market brand-name consumable products, most of which are considered essential to daily life, such as food, drink, toothpaste, deodorants, toilet paper, etc.

Since product demand is relatively stable, the companies should report earnings in line with expectations and, hence, the stocks have outperformed. Generally speaking, food companies generate earnings growth at a mid-to-high single-digit rate. Beverage companies, however, are

...

The stock market has begun to discount a recovery from the global recession. Prior rallies after major declines of similar magnitude (such as after the recession in the mid-1970's and the depression in the 1930's) were sharp and unrelenting. It is expected that stocks in the Consumer Staples sector will underperform as cyclical stocks discount the recovery.

OPPORTUNITIES

During market declines, stocks in the Consumer Staples sector have traditionally performed better than the stock market, and especially cyclical companies. The fundamental explanation is that food, beverage, household products and cosmetics companies manufacture and market brand-name consumable products, most of which are considered essential to daily life, such as food, drink, toothpaste, deodorants, toilet paper, etc.

Since product demand is relatively stable, the companies should report earnings in line with expectations and, hence, the stocks have outperformed. Generally speaking, food companies generate earnings growth at a mid-to-high single-digit rate. Beverage companies, however, are

...