GO
Loading...

The Best Dow Performer This Decade - Do You Know?

Friday, 22 Dec 2006 | 3:32 PM ET

Which Dow component has been the best performer since the Dow peaked back in 2000? (Here's a hint, it's been strong despite tough tobacco laws and rising cigarette taxes) CNBC's Erin Burnett revealed the answer on today's "Street Signs."

Altria Group is the company that's made the best run. The stock has skyrocketed almost 500% in the last 6 years.

Bonnie Herzog, a tobacco and beverage analyst for Citigroup Investment Research said 2007 will be another banner year for Altria (which includes Kraft Foods and PhilipMorris).

She anticipates MO will spin-off the Kraft Foods division as soon as the first quarter. After that, Herzog expects Altria to begin separating its U.S. and international businesses – focusing on growth opportunities overseas.

There is also speculation that Altria might try and break up the expected $15 billion buyout of Europe’s Gallaher Group by Japan Tobacco. Herzog is not sure if it will happen – or what it could mean for investors.

Herzog has a buy on the stock and a price target of $97.

Analyst disclosure: MO, RAI, CG UST are investment banking clients of Citigroup Investment Research. The analyst's firm also has non-investment banking relationship with these securities.

  Price   Change %Change
MO
---

Contact

  • Showtimes

    United States
    Monday - Friday 2:00P ET
    Europe
    Monday - Friday 20:00 CET
    Asia
    Tuesday - Saturday 02:00 SIN/HK
    Australia
    Tuesday - Saturday 04:00 SYD
    New Zealand
    Tuesday - Saturday 06:00 NZ
  • Brian Sullivan is co-anchor of CNBC's "Street Signs."

  • Co-anchor of CNBC's "Street Signs," Amanda Drury is based at the network's global headquarters in Englewood Cliffs, N.J.