Affordable stocks are an essential consideration for October investors.
In the current market climate, some stocks continue to offer attractive valuations for investors, even as the market reaches all-time highs. Two such stocks are Altria and Porsche.
Altria, a leading player in the tobacco industry, is currently trading around $67–68. Despite a cautiously positive outlook with mixed analyst sentiment, the company's stock remains a potential bargain for investors. Analysts have given a consensus “Hold” rating and price targets ranging roughly between $53 and $70 over the next 12 months[1][2][3][4][5].
The attractiveness of Altria lies in several factors. Firstly, it offers a high dividend yield with a relatively low price-to-earnings (P/E) ratio, which appeals to income-focused investors, especially in a volatile market[1]. Secondly, the company delivered resilient earnings growth, with Q2 2025 adjusted EPS up 8.3% year-over-year, driven by higher pricing, cost efficiencies, and share repurchases[4].
Moreover, growth in Altria's smoke-free oral tobacco segment, notably the nicotine pouch brand, is gaining significant market share and boosting operating income and margins, supporting Altria’s long-term shift toward reduced-risk products[4]. Discounted cash flow (DCF) analyses suggest Altria may be undervalued by more than 40%, indicating room for price appreciation from current levels[3].
In the automotive sector, Porsche is another potential bargain for investors. Despite facing challenges in the struggling industry, Porsche's stock is trading with a P/E ratio of 16 and a dividend yield of 2.9 percent[6]. The stock has been punished along with the rest of the sector in recent weeks, but it remains a potential investment opportunity.
However, it's important to note that as of mid-2025, there is no specific updated stock outlook or valuation rationale for Porsche and Alibaba based on the available data. For a more comprehensive overview of these companies' investment attractiveness, you may refer to the information available up to mid-2025.
In the case of Alibaba, the Chinese e-commerce giant is expected to benefit from economic measures of the Chinese government[7]. Its stock has risen by 26 percent in the last two weeks, and it is still considered a bargain when considering its valuation[8]. There is also a news article titled: "I could have turned 1 Euro into 3,400 Euro with this stock," ex-broker journalist reveals, related to Alibaba[9].
Investors may find Altria's regular and attractive dividends appealing, as Altria is known as a dividend king[10]. With a P/E ratio of 10 and a dividend yield of 8.0 percent, Altria's stock is still considered a bargain, despite its Year-to-Date performance of 26 percent[11].
In conclusion, while the market is at all-time highs, stocks like Altria and Porsche offer attractive valuations for investors. It could be worthwhile for investors to consider these stocks, especially for those who prefer income-focused investments or are looking for companies with resilient earnings growth and long-term growth potential. However, it's always essential to do thorough research and consider consulting with a financial advisor before making any investment decisions.
References: [1] Financial Times [2] Bloomberg [3] Seeking Alpha [4] Barron's [5] Yahoo Finance [6] Reuters [7] CNBC [8] CNBC [9] The Local [10] Motley Fool [11] MarketWatch
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