Best Tobacco Stocks Right Now Updated Daily

Therefore, you must think about how this declining demand might affect the company’s earnings before investing. In the healthcare sector, strong gains today do not guarantee further upside tomorrow. Sharp rallies in biotech stocks are usually driven by favorable clinical trial results or the launch of a new drug, but such moves tend to be one-off rather than permanent. Growth in revenue and net profit, along with lower debt and stronger sales, are crucial catalysts. The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Altria Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Defensive Investment Characteristics

Despite its roots in tobacco, ITC has expanded into various sectors, including hospitality, paperboards, packaging and agri-business. Its cigarettes are manufactured in modern facilities across India, employing advanced technology and top-notch practices aligned with global standards. Even in international markets, ITC maintains high-quality standards and remains competitive in the cigarette business.

Golden Tobacco Limited

Beyond tobacco, Golden Tobacco has a significant real estate business, with projects in Mumbai, Delhi, and Andhra Pradesh. In FY21, 71% of its revenue came from realty, 23% from tobacco sales, and 6% from other sources. However, the company has faced legal challenges, including a case by minority shareholders regarding an 8-acre land parcel in Vile Parle, which was dismissed by NCLT but remains in mediation.

Top Tobacco Stocks in India in 2025 as per Market Capitalisation

Thanks to strong pricing, British American Tobacco was able to grow its gross profit slightly faster compared to its revenue. For the full year, Altria generated adjusted diluted EPS growth of 3.4% and returned over $10.2 billion to shareholders through dividends and share repurchases. Tobacco stocks produce a lot of cash, but have very little capital expenditure needs, creating what could be considered perfect income stocks. In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap. Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy.

Best Tobacco Stocks List By Market Capitalisation

No cost, no obligation to buy anything ever.Past performance is no guarantee of future results. Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

• BAT also boasts around 24 million adult consumers globally of its new-category products that include heated cigarettes and oral nicotine products.
• Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days.
• These negative trends have kept many investors away from tobacco stocks.
• Smoking rates have steadily declined worldwide, especially in the U.S., due to health concerns and increasing regulations.
• One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.
• Imperial Brands’ future growth will be fueled by its next-generation product line.

About the Industry

The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations. Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer. Its products include snus, moist snuff, chewing tobacco, cigars, and lighters and matches. Swedish Match’s largest markets are Scandinavia and the United States, which collectively account for roughly 85% of the company’s total revenue.

The company’s key cigarette brands include Fine Cut, Regent Special, Prestige, Jaipur, FX American Blend, and Valentino, while non-tobacco products include Agardeep Incense Sticks and R’ Gent Matchboxes. Putting your money into tobacco companies comes with its fair share of risks. These include government regulations, health worries, tough competition and the possibility of facing legal action. Government rules can affect how much the industry can grow, and increased health awareness could mean fewer people buying tobacco products.

However, sales growth has been slow at 5.27% over the past five years, and working capital days have increased significantly. Before investing, investors must conduct independent research and not solely rely on the information provided here. This will allow investors to make appropriate investment decisions based on their financial goals, investment objectives and risk tolerance. Catechu products are used as mouth fresheners, containing chewing tobacco and areca nuts, and are utilised for treating dysentery, acute viral hepatitis, diarrhoea, ailments of the mouth, tonsils, etc. It is used as a vegetable tanning material or as an additive or preservative in various industries.

• After the patent expires, generic manufacturers are free to produce identical versions without infringing the original company’s patent rights.
• The best tobacco stocks have the potential to deliver returns but also come with multiple risks.
• Overall, 2025 was a year during which the company grew its revenues by 7%.
• It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.
• The tobacco segment includes the manufacture and sale of its various tobacco products, while the logistics segment distributes tobacco to product manufacturers.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium. But valuations are relatively low, dividend yields are high, and most companies are diversifying away from tobacco. Due to strong cash generation, low capex requirements and the stability of Philip Morris’ business model during recessions the dividend remains relatively well-covered. Universal’s adjusted earnings-per-share totaled $0.80 during the quarter, which was way weaker than the results seen in the previous quarter, when Universal generated a substantially larger profit. In all of fiscal 2025, Universal Corporation saw its earnings-per-share pull back by close to 10%. This was a weaker performance compared to the last couple of quarters, when Universal was able to grow its revenues on a year-over-year basis.

Food and Drug Administration and are required to follow the permissible levels of nicotine in manufacturing. Players in this space sell products mostly Best tobacco stocks through large retailers, distributors, convenience stores, drugstores, wholesalers and grocery chains. Some international tobacco firms also operate in the country through subsidiaries.

Rankings are in order of projected total returns from lowest to highest. Click here to instantly download your free spreadsheet of all Tobacco Stocks now, along with important investing metrics. After finding success with IQOS internationally, Philip Morris paid $2.7 billion to acquire the rights from Altria to sell the product line in the U.S.

The selection is arranged in descending order, placing the largest companies first and the smaller ones later. In India, the tobacco industry plays a vital role in the growth and development of the economy. Despite facing numerous challenges related to health issues and increased government regulations, investing in tobacco stocks in India has been an attractive option for many. Before we present a few stocks that you may want to consider for your portfolio, let’s look at the industry’s recent stock-market performance and valuation picture.

An increasing number of U.S. states have significantly raised the tax on cigarettes to reduce their budget deficits, and to reduce the potential appeal of smoking for consumers. This has led to much lower volumes of total cigarettes sold, producing a declining total to be split up among the various companies selling cigarettes. The number of people smoking at least 15 cigarettes a day has plummeted in the past few decades. Today, the overwhelming majority of smokers use fewer than 15 cigarettes daily. This sort of decline in an industry’s customer group generally spells trouble for the companies that operate within it. Tobacco stocks produce a lot of cash flow, but have very little capital expenditure needs, creating what could be considered perfect income stocks.

However, investors must keep in mind that the total volumes for the industry are in fairly steep decline, and all indications are that this is irreversible. Other forms of tobacco usage have seen similar rates of decline, including smokeless tobacco. This has been the case with every demographic group, so it is widespread among all of the companies’ potential customers. Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University.

 6 total views,  1 views today