Stocks to Watch: Zacks Tobacco industry players are experiencing increased soft cigarette sales due to inflation, changing consumer habits, and stringent regulations. Despite increased costs of essential materials, investments in smoke-free products drive revenues and pricing power, keeping them well-positioned despite industry challenges.
Zacks Tobacco Industry Overview
- Involves manufacturers and sellers of cigarettes, tobacco, and nicotine-based products.
- Some offer RRPs like e-cigarettes, vaping, and heat-not-burn variants.
- Some firms manufacture devices and attachments for vaping and heat-not-burn products.
- Products are strictly regulated by the U.S. Food and Drug Administration.
- Major sales channels include large retailers, distributors, convenience stores, drugstores, wholesalers, and grocery chains.
- Some international tobacco firms operate in the U.S. through subsidiaries.
Tobacco Stocks to Keep a Close Eye On
Philip Morris International
Philip Morris International’s Market Position and Growth
- Focuses on smoke-free products to align with consumer preferences.
- Aims to become a predominantly smoke-free company by 2030.
- Premium smoke-free brands, IQOS and ZYN, drive success.
- Strong pricing strategies positively impact product portfolio.
- Zacks Consensus Estimate for 2024 earnings per share declines to $6.31, but suggests 5% growth.
- Shares of Philip Morris have risen 9% in the past six months.
Altria Group
Altria Group’s Resilience and 2028 Goals
- Leverages pricing power and prioritizes smoke-free alternatives.
- Investment in on! has been effective in oral tobacco.
- Acquisition of NJOY Holdings represents advancement in e-vapor category.
- 2028 Enterprise Goals include doubling U.S. smoke-free net revenues and driving mid-single-digit adjusted EPS growth.
- Altria shares have rallied 12.5% in the past six months.
- Zacks Consensus Estimate for 2024 EPS has risen by 2 cents to $5.11.
British American Tobacco
British American Tobacco’s Strategic Focus
- Strengthening Heated Products portfolio with innovative launches like glo Hyper pro.
- Expanding tobacco-free consumables.
- Enhancing innovation pipeline through R&D capabilities, device engineering, and global network formation.
- Returning U.S. combustibles business to consistent value growth.
- Zacks Consensus Estimate for 2024 bottom line declines 0.4% to $4.68.
- Shares of BTI have lost 0.5% in the past six months.Stocks to Watch
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are entering the market with promising products. Despite their massive infrastructures, proper resource use could help these companies expand their presence. Moderna, for example, has taken on pharma giants like Pfizer with its COVID-19 vaccine.
The obesity market is expected to grow rapidly, leading to increased competition. Companies like Novo, Lilly, and Zepbound are entering the market with promising products. Despite their massive infrastructures, proper resource use could help these companies expand their presence. Moderna, for example, has taken on pharma giants like Pfizer with its COVID-19 vaccine.
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The obesity market is expected to grow rapidly, leading to increased competition. Companies like Novo, Lilly, and Zepbound are entering the market with promising products. Despite their massive infrastructures, proper resource use could help these companies expand their presence. Moderna, for example, has taken on pharma giants like Pfizer with its COVID-19 vaccine.
The obesity market is expected to grow rapidly, leading to increased competition. Companies like Novo, Lilly, and Zepbound are entering the market with promising products. Despite their massive infrastructures, proper resource use could help these companies expand their presence. Moderna, for example, has taken on pharma giants like Pfizer with its COVID-19 vaccine.
are entering the market with promising products. Despite their massive infrastructures, proper resource use could help these companies expand their presence. Moderna, for example, has taken on pharma giants like Pfizer with its COVID-19 vaccine.
The obesity market is expected to grow rapidly, leading to increased competition. Companies like Novo, Lilly, and Zepbound are entering the market with promising products. Despite their massive infrastructures, proper resource use could help these companies expand their presence. Moderna, for example, has taken on pharma giants like Pfizer with its COVID-19 vaccine.
The obesity market is expected to grow rapidly, leading to increased competition. Companies like Novo, Lilly, and Zepbound are entering the market with promising products. Despite their massive infrastructures, proper resource use could help these companies expand their presence. Moderna, for example, has taken on pharma giants like Pfizer with its COVID-19 vaccine.