Four smoking hot tobacco stocks

These companies below our fair value estimates may be a buying and holding as the industry innovates and diversifies to counter volume declines  

Vikram Barhat 4 September, 2019 | 2:06AM

Cigarette

Tobacco stocks have been under considerable pressure over the past year, from changing lifestyle choices to regulatory headwinds that refuse to go away. Yet despite these threats, big tobacco manufacturers are finding new ways to grow and remain a great, recession-proof investment

For the year to date, the Dow Jones U.S. Tobacco Index has given up almost all of its gains after rising more than 27% earlier this year, as of August 28. The MSCI World Tobacco Index, which comprises large and mid-cap tobacco stocks, fell a staggering 35% last year, and had gained only 10% year-to-date, as of July 31.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Altria Group Inc41.66 USD0.14
British American Tobacco PLC ADR33.58 USD-0.56
Imperial Brands PLC ADR16.88 USD0.78
Philip Morris International Inc76.96 USD-0.18

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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