Altria Group Inc. (NYSE: MO) will report its third-quarter earnings Thursday before the U.S. markets open. Thomson Reuters has consensus estimates of $0.68 in earnings per share and $4.73 billion in revenue. In the third quarter of the previous year, the company posted $0.65 in earnings per share and $4.61 billion in revenue.

The company is a top tobacco name to buy, and its Marlboro brand is one of the most recognizable in the world. Analysts at Cowen believe the stock has solid downside support, owing to the generous dividend yield, which remains at a huge premium in relation to the 10-year Treasury rate. Cowen has an Outperform rating on the stock and a price target of $53, as of October 6.

Smoking is supposed to be defensive, but this stock only recently hit new highs. Part of the driving force behind why investors are not chasing Altria is that fresh hopes of continued beer consolidation was a boost for its value in SAB Miller, and now that appears to be shelved. Investors do not want to chase up a value if it is no longer to be potentially unlocked. Despite a 4.5% yield, Altria has been slow to ramp up on e-cigarettes.

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On September 26, Bank of America upgraded Altria to a Buy rating from Neutral and boosted its price target to $50 from $44.

Altria tested the 50-day moving average in late July, briefly falling below but making a handy recovery and staying about the average for the remainder of the quarter. The current 50-day moving average is $44.86.

Shares of Altria were trading up about 0.5% at $47.72 with three hours left in regular trading. The consensus analyst price target is $45.67, and shares have traded in a range of $33.80 to $47.94 in the past year. The market cap is near $94 billion.

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