There are only a handful of tobacco stocks that trade on major U.S. exchanges, most of which have direct ties to the domestic market for cigarettes and other tobacco products. Smoking rates have steadily declined around the world, especially in the U.S., due to health concerns and increasing regulations. As a result, the industry has sought to pivot to next-generation products such as e-cigarettes and vaporizers, which circumvent some drawbacks of smokable cigarettes like unwanted odor and are perceived by some as better for your health. Some companies have looked beyond tobacco, partnering with cannabis businesses to capture the potential growth in an industry that bears many similarities to tobacco. In February, Cronos Group became the first pure-play cannabis stock to list on a major U.S. exchange – Nasdaq. Based in Canada, Cronos is a vertically integrated cannabis company whose core business is medical marijuana, but it is also involved in the recreational space following the full legalization of weed in Canada earlier this month.
In addition, Canada’s Island Garden has received a license to sell marijuana and signed an agreement with the province of Prince Edward Island for 1,000 kilograms of cannabis products. Moreover, Pyxus International’s Korent subsidiary is involved in the production of industrial hemp and hemp-derived CBD oil and liquid for e-cigarettes. Marrone Bio Innovations, Inc. provides bio-based pest management and plant health products for various markets, such as agriculture and water treatment. The company’s three active ingredients are legalized for use on cannabis crops in California. The company doesn’t provide any cannabis products, but it has major exposure to the industry and is betting big on its growth. Greenlane’s products are distributed across hundreds of licensed cannabis cultivators, processors and dispensaries.
Throughout the 20th century, tobacco stocks were among the best performers, benefiting from an addictive, highly profitable, recession-proof product, plus a reputation for offering generous dividend yields to investors. NewAge is a Colorado-based omnichannel company that tries to motivate consumers to “live healthy.” It is the only one-stop shop of healthy beverages, with famous brands such as Nestea, Evian, Búcha Live Kombucha, Illy Coffee, and Volvic. Recently the company has announced that its Noni+CBD product has obtained sales approval by the Japanese Ministry of Health and the Japanese Narcotics Control Division. The company also offers a portfolio of hemp products, such as oils, body creams, and roll-on gels, which has reached Australia and New Zealand. This plant biotechnology company is mostly known for its workings in the tobacco industry, more precisely for its efforts to make smoking less unhealthy by minimizing the levels of nicotine in the tobacco plant.
Pure-play vaping stocks
Sales of HTUs are still much smaller than sales of traditional cigarettes, so it’s likely that the IQOS brand still has plenty of runway. While the HNB process is similar to the process used by vaporizers and e-cigarettes, devices such as the IQOS use tobacco rather than the liquid made for vaporizers. By staying focused on tobacco, Philip Morris is taking advantage of the same supply chain for IQOS that it does for traditional cigarettes while also enjoying attractive profit margins for IQOS cartridge sales. The company claims that HNB devices are safer than regular cigarettes because they don’t burn the tobacco; however, the science is still being debated, and the FDA has not concluded that HNB devices are safer than cigarettes. The strategy does seem to be successful since almost one-third of the company’s revenue now comes from smoke-free products, and IQOS is gaining market share in countries where it’s available. Like other tobacco companies, BAT is focused on substantially transitioning to next-gen products.
List of the largest publicly traded largest the tools for forex trading by earnings. As important as traditional cigarettes are to Philip Morris International’s business, the company has made a massive strategic shift in a new direction. Philip Morris is now committed to what it calls a smoke-free future, looking to create or market alternatives to cigarettes in an effort to find ways to enjoy tobacco without sacrificing safety. Although selling traditional cigarettes is highly profitable, the business is in decline and is expected to keep declining. Tobacco companies need to find new ways to grow and diversify their businesses. Since its split from Altria in 2008, the company has raised its dividend every year, and its dividend had increased by 172% as of July 2022.
- If they’re correct, I don’t even want to guess how much revenue this company is going to be bringing in.
- These are the tobacco stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio.
- Many investors are concerned about potential regulation of e-cigarettes and other vaping products, and that could have an outsize impact on Turning Point Brands.
- Canadian medical marijuana producer Aphria became the first pure-play cannabis company to trade on the NYSE.
- It manufactures and sells fresh produce from its large greenhouses located in Texas and British Columbia and its partner greenhouses in British Columbia, Mexico, and Ontario.
Tobacco has been a big business in the United States for more than a century. Whether you’re interested in cigars, pipe tobacco, chewing tobacco, or traditional cigarettes, tobacco stocks have been wildly profitable as well as highly controversial. British American Tobacco (BAT) has become a titan of the industry as well, fueled by its $49 billion acquisition of Reynolds American in 2017.
On May 1, cbdMD changed its name from Level Brands and the ticker from LEVB to YCBD following a vote from shareholders. Prior to that, Aphria’s stock had been listed on the over-the-counter market in the U.S. and on the Toronto Stock Exchange. Listing on the NYSE was a major step for Aphria, opening the company to a larger pool of investors. Given the federal uncertainty that still surrounds cannabis in America and in most of the world, few cannabis companies choose the path of a public listing in order to raise funds and even fewer among them are pure-play marijuana stocks.
Altria’s 9.5% stake in Anheuser-Busch InBev (BUD 0.17%) gave it additional exposure to the crisis; alcohol contracted significantly when bars and restaurants around the world closed. Still, as part of the consumer staples sector, the tobacco industry won’t suffer any lasting scars from the pandemic. Stock prices for tobacco companies have mostly recovered since their sharp declines at the beginning of the pandemic.
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Akerna is the first cannabis compliance technology company to be traded on NASDAQ and is the first NASDAQ-listed cannabis company led by a woman. The company allows cannabis businesses to connect data points in their supply chain making it more transparent and accountable. These are the tobacco stocks that had the highest total return or smallest decline in price over the last 12 months. Below, we look at the top tobacco stocks based on value, growth, and performance. Benchmark figures above are as of May 26, and all data below are as of May 23, 2023. Altria is taking a stake in the global business of Swiss tobacco company Burger Söhne (Helix Innovations with the On! brand) for $372 million on June 2019.
Pyxus International, Inc.
Canadian medical marijuana producer Aphria became the first pure-play cannabis company to trade on the NYSE. These are the tobacco stocks with the lowest 12-month trailing price-to-earnings 12 reasons to hire ukrainian software developers (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
For now, Vector seems committed to balancing its tobacco and real estate operations. Given the need for discount cigarette options, customers seem likely to keep buying Vector products even as overall interest in the industry wanes. New Valley also has extensive assets in the Las Vegas area to go with its major presence in New York City, Miami, and Los Angeles. review capital markets and investments Instead, Universal purchases, processes, and sells a wide variety of different types of leaf tobacco, including flue-cured, burley dark air-cured, and oriental tobacco. The company works directly with tobacco cultivators to help provide support in their agricultural pursuits, as well as offering research on best practices along with financing opportunities.
Best Value Tobacco Stocks
That alternative focus has proven to be a big driver of revenue for Turning Point. The company has also been consistently profitable in the past several years, and bottom-line growth has been steady over that timeframe. For now, though, Altria looks poised to continue as an independent company, and it’s making strategic moves that are intended to ensure its survival even as cigarette smoking continues to wane. Taking into account their market caps, it’s clear that three of these companies are huge players in major tobacco markets. The other six are niche players that play important roles but still have a much smaller overall presence in the industry. Below, we’ll look more closely at these companies to see how they fit together to help define the U.S. tobacco industry.
IM Cannabis Corp IMCC
Among pharmaceutical companies, UK-based GW Pharmaceutical is the closest to being a pure-play cannabis company. Compass Diversified Holdings is an investment and holdings company, concentrated on North American middle-market enterprises. It is run by Compass Group Management LLC, which has more than 20 years of experience in the field.