Top 10 Tobacco Stocks to Watch in Aug 2024: Essential Guide for Investors

What 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

1. 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.

2. 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.

3. 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

1. 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$182.627B

   • Stock price performance in 2024: +28.23%

   • What's the latest news:

     Philip Morris Stock Rises: Philip Morris International stock has risen for seven consecutive sessions, gaining about 7%.

     Strong Q2 for Philip Morris: Philip Morris International reports strong second-quarter performance, boosting stock value.

     Investor Confidence in Philip Morris: Investment management firm Andvari Associates expresses confidence in the future of Philip Morris International.

     Philip Morris Expands Smoke-Free Products: Philip Morris International continues to expand its smoke-free product line, enhancing its market competitiveness.

2. 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$85.345B

   • Stock price performance in 2024: +29.55%

   • What's the latest news:

     Q2 Earnings Stable: Altria reported a stable Q2 adjusted EPS of $1.31, unchanged year-over-year.

     Q2 Earnings Preview: Altria is set to report its Q2 earnings with slight revenue decline expected.

     Stock Drops: Altria's stock fell after reporting lower-than-expected Q2 earnings and narrowed guidance.

     52-Week High: Altria's stock hits a 52-week high, raising questions on whether to sell or hold.

     Next Quarter Outlook: Altria anticipates increased EPS in the next quarter, showing strong market performance.

3. 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$79.631B

   • Stock price performance in 2024: +28.58%

   • What's the latest news:

     Stock up 18%: British American Tobacco's stock rises due to buyback program and positive half-year results.

     Buy rating from Deutsche Bank: Deutsche Bank maintains a Buy rating on British American Tobacco with a target price of £35.

     Share buyback update: British American Tobacco announces a share buyback, cancelling 59,739 shares.

     Capital Group adjusts stake: The Capital Group Companies, Inc. now holds 13.043747% of British American Tobacco's voting rights.

     E-cigarette market report: British American Tobacco's mid-year report shows strong performance in new tobacco products, increasing market share.

4. 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$2.149B

   • Stock price performance in 2024: -15.50%

5. Vector(VGR.US)

   • Company overview

     Vector Group Ltd. is a holding company, which engages in the distribution of tobacco products. It operates through the following segments: Tobacco, Real Estate, and Corporate and Other. The Tobacco segment consists of the manufacturing and sale of cigarettes. The Real Estate segment includes the acquisition and investments in real estate properties and projects. The company was founded in 1980 and is headquartered in Miami, FL.

   • Market value of Vector(VGR.US): US$2.093B

   • Stock price performance in 2024: +22.24%

   • What's the latest news:

     Q2 Revenue and Profit Up: Vector Group reported increased revenue and profits in Q2 2024.

     Non-GAAP EPS of $0.34: Vector's Q2 Non-GAAP EPS stood at $0.34 with revenue of $371.9M.

     Q2 Earnings Call: Vector Group held its Q2 2024 earnings call discussing financial and operational performance.

     Q2 Sales of $371.9M: Vector Group's sales reached $371.9 million in the second quarter.

     Q2 Earnings Preview: Vector is set to announce Q2 earnings on August 1st, with an expected EPS of $0.30.

6. 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$1.283B

   • Stock price performance in 2024: -19.12%

   • What's the latest news:

     AMC and IMAX Stock Rise: AMC and IMAX stocks rose due to strong box office returns from 'Deadpool & Wolverine'.

     Universal Corp Conference Call: Universal Corporation will host a conference call on August 7, 2024, to discuss Q1 FY2025 results.

     CEO Compensation Concerns: Universal Corp's CEO compensation is significantly above the industry average, raising shareholder concerns.

7. 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$676.615M

   • Stock price performance in 2024: +45.88%

   • What's the latest news:

     Earnings Beat Expectations: Turning Point Brands reports Q2 Non-GAAP EPS of $0.89 and revenue of $108.51M, both exceeding forecasts.

     Q2 Sales Reported: Turning Point Brands posts Q2 sales of $108.512 million.

     Q2 Results Announced: Turning Point Brands announces results for the second quarter of 2024.

     Quarterly Report Issued: Turning Point Brands releases its quarterly report.

     Growth and Guidance Raised: Turning Point Brands sees a 7% YoY improvement in adjusted EBITDA for Q2 and raises full-year 2024 guidance.

8. 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$404.393M

   • Stock price performance in 2024: -40.89%

   • What's the latest news:

     Buy Rating Raised: Roth MKM raised Ispire Technology's target price from $11 to $12.5.

9. 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$5.672M

   • Stock price performance in 2024: -77.18%

10. 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$3.918M

    • Stock price performance in 2024: -79.86%