Top 10 Tobacco Stocks to Watch in Nov 2024: Essential Guide for Investors
Nov 21, 2024 03:08What are Tobacco Stocks?
The tobacco sector is a significant part of the global economy, encompassing everything from cultivation and processing to marketing and sales. This sector includes not only traditional cigarette manufacturers but also encompasses cigars, pipe tobacco, and the increasingly popular electronic cigarettes. Despite facing challenges from public health policies and a tightening regulatory environment, the tobacco industry continues to demonstrate strong market demand and stable profit sources.
Key Aspects of Tobacco Stocks
Traditional Tobacco Companies:
- These companies primarily engage in the production and sale of traditional tobacco products such as cigarettes and cigars.
- Examples: Altria Group, British American Tobacco and Philip Morris International.
Alternative Tobacco Products:
- With rising health consciousness among consumers, there is increasing market demand for alternative tobacco products like e-cigarettes and heat-not-burn devices.
- Examples: Juul Labs, Vuse and IQOS.
International Market Expansion:
- Tobacco companies are expanding their revenue streams by entering new international markets, particularly in developing countries.
- Examples: Imperial Brands, Japan Tobacco and ITC Limited.
10 Top Tobacco Stocks
Philip Morris International(PM.US)
Company overview
Philip Morris International, Inc. is a holding company, which engages in the business of delivering a smoke-free future and evolving a portfolio for the long term to include products outside of the tobacco and nicotine sector. It operates through the following geographical segments: Europe Region (Europe), South and Southeast Asia, Commonwealth of Independent States, Middle East, and Africa Region (SSEA, CIS, and MEA), East Asia, Australia, and PMI Duty Free Region (EA, AU, and PMI DF), and Americas Region (Americas). The Europe segment includes all the European Union countries, Switzerland, the United Kingdom, Ukraine, Moldova, and Southeast Europe. The SSEA, CIS, and MEA segment focuses on South and Southeast Asia, the African continent, the Middle East, Turkey, Israel, Central Asia, Caucasus, and Russia. The EA, AU, and PMI DF segment is involved in the consolidation of international duty-free business with East Asia and Australia. The Americas segment is comprised of the United States, Canada, and Latin America. The company was founded by Philip Morris in 1847 and is headquartered in Stamford, CT.
Market value of Philip Morris International(PM.US): US$203.170B
Stock price performance in 2024: +44.26%
What's the latest news:
80% Owned by Institutions: Institutional investors hold 80% of Philip Morris International, significantly influencing its stock price.
Top Dividend Contender: Philip Morris International ranks highly among dividend contenders, increasing dividends for 15 consecutive years.
Buy Rating Maintained: Stifel analyst maintains a buy rating on Philip Morris International with a target price of $145.
Altria(MO.US)
Company overview
Altria Group, Inc. is a holding company, which engages in the manufacture and sale of cigarettes in the United States. It operates through the following segments: Smokeable Products, Oral Tobacco Products, and All Other. The Smokeable Products segment consists of cigarettes manufactured and sold by PM USA, and machine-made large cigars and pipe tobacco manufactured and sold by Middleton. The Oral Tobacco Products segment includes MST and snus products manufactured and sold by USSTC, and oral nicotine pouches manufactured and sold by Helix. The All Other segment refers to the financial results of NJOY, Helix ROW, and the IQOS System heated tobacco business. The company was founded in 1919 and is headquartered in Richmond, VA.
Market value of Altria(MO.US): US$94.350B
Stock price performance in 2024: +47.00%
What's the latest news:
3 Reasons to Buy Altria: Altria attracts investors with a high 7.3% dividend yield and dominant Marlboro brand.
Altria Shifts to E-Vapor: Altria Group is pivoting from traditional tobacco to e-vapor and nicotine pouches to adapt to market shifts.
UBS: Altria a Bottom-Ranked Stock: According to a UBS report, Altria ranks low among quant stocks across various sectors including AI, IT, and healthcare.
Cramer Won't Recommend Altria: Despite considering Altria undervalued, Cramer refrains from recommending the stock due to personal reasons.
High Interest in Altria Stock: Altria stock sees a surge in searches due to its stable dividends and potential growth prospects.
British American Tobacco(BTI.US)
Company overview
British American Tobacco P.l.c. Founded in GB (UK) in 1902, it is a leading tobacco group. The company also sells steam e-cigarettes, including its Vype brand, heating tobacco and Glo, as well as homemade cigarettes and smokeless tobacco products. The company has a 31 per cent stake in ITC Limited, India's leading cigarette maker。
Market value of British American Tobacco(BTI.US): US$82.082B
Stock price performance in 2024: +35.32%
RLX Technology(RLX.US)
Company overview
RLX Technology, Inc. operates as a holding company, which engages in the manufacturing and sale of e-vapor products. It conducts business through its subsidiaries and a variable interest entity that engages in activities in the e-vapor industry, scientific research, technology and product development, and supply chain management to offline distribution. The company was founded by Ying Wang, Long Jiang, and Yilong Wen on January 2, 2018 and is headquartered in Shenzhen, China.
Market value of RLX Technology(RLX.US): US$2.289B
Stock price performance in 2024: -10.00%
What's the latest news:
Q3 Revenue Growth: RLX Technology reports a 51.59% increase in Q3 net revenue.
Q3 Earnings Preview: RLX Technology set to release Q3 2024 earnings, expected EPS is $0.03.
Q3 Revenues Beat: RLX Technology's Q3 revenues exceed expectations, EPS falls short.
Declares Dividend: RLX Technology declares a $0.01 per share annual dividend.
Strong Q3 Performance: RLX Technology shows strong Q3 performance with synchronized growth in domestic and international markets.
Universal Corp(UVV.US)
Company overview
Universal Corp. is a business-to-business agriculture products supplier to consumer product manufacturers that sources and processes leaf tobacco and plant-based ingredients. It operates through the Tobacco Operations and Ingredients Operations segments. The Tobacco Operations segment includes selecting, procuring, processing, packing, storing, shipping, and financing leaf tobacco for sale to, or for the account of, manufacturers of consumer tobacco products throughout the world. The Ingredients Operations segment provides customers with a variety of plant-based ingredients for both human and pet consumption. The company was founded in 1918 and is headquartered in Richmond, VA.
Market value of Universal Corp(UVV.US): US$1.346B
Stock price performance in 2024: -13.92%
Turning Point Brands(TPB.US)
Company overview
Turning Point Brands, Inc. engages in manufacturing, marketing, and distributing branded consumer products including alternative smoking accessories and consumables with active ingredients. It operates through the following segments: Zig-Zag Products, Stoker's Products, and Creative Distribution Solutions. The Zig-Zag Products segment markets and distributes rolling papers, tubes, finished cigars, and MYO cigar wraps. The Stoker's Products segment manufactures and markets moist snuff and contracts for and markets loose leaf chewing tobacco products. The Creative Distribution Solutions segment markets and distributes liquid nicotine products and other products without tobacco or nicotine, distributes to non-traditional retail outlets via Vapor Beast, and offers products to individual consumers via the VaporFi B2C online platform. The company was founded by Thomas Helms, Jr. in 1988 and is headquartered in Louisville, KY.
Market value of Turning Point Brands(TPB.US): US$1.090B
Stock price performance in 2024: +135.64%
What's the latest news:
Stock Price Rises: Turning Point Brands shares rise after announcing a joint venture with the Tucker Carlson Network and receiving an outperform rating from Oppenheimer with a target price of $65.
Buy Rating Issued: Craig-Hallum analyst Eric Des Lauriers issues a buy rating for Turning Point Brands, with the stock closing yesterday at $55.
Buy Rating Initiated: Oppenheimer analyst Ian Zaffino initiates coverage on Turning Point Brands with a buy rating and a target price of $65.
Buy Rating Maintained: Craig-Hallum analyst Eric Des Lauriers maintains a buy rating for Turning Point Brands.
Ispire Technology(ISPR.US)
Company overview
Ispire Technology, Inc. engages in the research and development, design, commercialization, sales, marketing, and distribution of branded e-cigarettes and cannabis vaping products. The company was founded on June 13, 2022 and is headquartered in Los Angeles, CA.
Market value of Ispire Technology(ISPR.US): US$354.607M
Stock price performance in 2024: -48.39%
What's the latest news:
Revenue Decline: Ispire Technology reports an 8.2% revenue drop in Q1 2025.
FDA Approval Progress: Ispire and IKE Tech advance FDA-backed age verification tech.
Positive FDA Meeting: Ispire and IKE Tech announce positive pre-PMTA meeting with FDA.
PMTA Studies Completion: Ispire expects to complete PMTA studies by Q1 2025.
Successful FDA Meeting: Ispire and IKE Tech report successful FDA pre-PMTA submission meeting.
Kaival Brands Innovations(KAVL.US)
Company overview
Kaival Brands Innovations Group, Inc. engages in the sale, marketing, and distribution of electronic nicotine delivery system products. Its brands include BIDI Stick, Bidi Vapor, and BIDI Cares. The company was founded by Paul Moody and Nirajkumar Patel in 1998 and is headquartered in Grant-Valkaria, FL.
Market value of Kaival Brands Innovations(KAVL.US): US$5.563M
Stock price performance in 2024: -80.57%
22nd Century(XXII.US)
Company overview
22nd Century Group, Inc. is a biotechnology company, which engages in the business of tobacco harm reduction, reduced nicotine tobacco, and improvement of health and wellness through plant science. It operates through the Tobacco and Hemp/Cannabis segments. The Tobacco segment manufactures branded filtered cigars and cigarettes. The Hemp/Cannabis segment focuses on the bulk ingredient distillate or isolate. The company was founded on September 12, 2005 and is headquartered in Buffalo, NY.
Market value of 22nd Century(XXII.US): US$4.395M
Stock price performance in 2024: -96.98%
Greenlane(GNLN.US)
Company overview
Greenlane Holdings, Inc. engages in the distribution and supply of vaporization products and accessories for vape shops and dispensaries. It operates through the Consumer Goods and Industrial Goods segments. Its brands include Pollen Gear, Higher Standards, Groove, Marley Natural, and Aerospaced. The company was founded by Aaron LoCascio in 2005 and is headquartered in Boca Raton, FL.
Market value of Greenlane(GNLN.US): US$2.287M
Stock price performance in 2024: -70.00%
What's the latest news:
Q3 Earnings Loss: Greenlane reports a $3.8 million loss in Q3.
New US Distribution Deal: Greenlane announces a multi-year distribution agreement with Veriteque USA.
Reduced Q3 Net Loss: Despite a 66% drop in revenue, Greenlane cuts its Q3 net loss.
Q3 Earnings Report: Greenlane releases its Q3 2024 earnings report.
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