In this article, we will discuss the 10 Best Sin Stocks to Buy Now.
Chatter about a summer ‘melt up’ is already heating up as the US equity market extends its longest winning streak since 2023. The S&P 500 is already up by about 9%, with the tech-heavy Nasdaq 100 gaining 19% year to date.
According to Bret Kenwell, U.S. investment analyst at eToro, a potential melt-up could be on the way for stocks experiencing the strongest stretch of gains in record.
“It certainly feels like we’re in a melt-up here,” Kenwell told MarketWatch during an interview.
Amid concerns about a pullback, strategists at Goldman Sachs insist there is still room for additional gains, even on the S&P 500, registering its 19th record close. The Wall Street bank has already raised its S&P 500 end-of-year target to 8,000 from 7,600 as it expects valuations to be supported by continued growth in corporate profits.
“Going forward, our base case is for a market multiple that remains flat as the valuation tailwind from modestly lower Treasury yields is offset by the valuation headwind from decelerating economic and earnings growth, investor skepticism about the persistence of earnings tied to the AI infrastructure build-out, and continued uncertainty around both AI disruption and the geopolitical outlook,” said Goldman.
According to the team at Goldman Sachs, the conditions that have marked the end of past bull markets are mostly absent today. While speculative sentiment is elevated, it is less extreme than at the end of the previous bull markets.
However, Goldman Sachs has warned that the market may face macroeconomic headwinds owing to higher energy prices. Soaring energy prices have already triggered a spike in inflation, significantly affecting consumer spending power.
While soaring inflation and economic growth concerns could trigger jitters on Wall Street, stocks with strong financial characteristics are expected to ride out the turmoil . That’s because most of the sin stocks operate in industries with stable inelastic demand, such as tobacco, alcohol, and gambling, whereby consumption remains steady regardless of economic conditions.
With that in mind, let’s take a look at the best sin stocks to buy right now as defensive investments during market downturns.
Our Methodology
To compile our list of the best sin stocks to buy right now, we reviewed our own rankings, financial reports, and other online resources to look for U.S.-listed companies that fall into the category of ‘unethical’ or ‘sin’. We focused on stocks with operations around alcoholic, cannabis, gambling, and tobacco products. We then settled on stocks with an upside potential of more than 10% (as of May 26) and were popular among elite hedge funds in Q1 2026. Finally, we ranked the stocks in ascending order based on their upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Best Sin Stocks to Buy Now
10. Molson Coors Beverage Company (NYSE:TAP)
Stock Upside Potential: 10.02%
Number of Hedge Fund Holders: 41
Molson Coors Beverage Company (NYSE:TAP) is one of the best sin stocks to buy now. On May 20, Molson Coors Beverage Company (NYSE:TAP) ventured into the debt market with the pricing of CAD$500 million in 4.3% senior notes due 2033. The company plans to use net proceeds from the offering for general corporate purposes, including repayment of 3.44% notes due this year.
The pricing of the offering follows solid first-quarter results that were largely in line with expectations, despite a challenging macroeconomic environment. Net sales were up 2% to $2.35 billion, while U.S. GAAP income before income taxes increased 24.6% to $194.7 million, driven by favorable pricing and sales mix. Diluted earnings per share were up 24% to $0.62.
Management expects the solid start to the year to persist throughout the year, with net sales expected to remain flat or increase by 1% or minus 1%
During the first quarter, Molson Coors Beverage Company asserted its commitment to shareholder value by repurchasing 3.4 million shares for about $164 million, representing a 225% increase. The company also increased its quarterly dividend by 2.1% to $ 0.48 per share, marking the fifth consecutive year of dividend increases.
Molson Coors Beverage Company (NYSE:TAP) produces, markets, and distributes a massive portfolio of alcoholic and non-alcoholic beverages. While globally known as one of the world’s largest brewers of iconic beers, the multinational company has expanded beyond traditional beer to include flavored malt beverages, seltzers, spirits, and non-alcoholic options.
9. Anheuser-Busch InBev SA/NV (NYSE:BUD)
Stock Upside Potential: 10.41%
Number of Hedge Fund Holders: 33
Anheuser-Busch InBev SA/NV (NYSE:BUD) is one of the best sin stocks to buy now. On May 13, Anheuser-Busch InBev SA/NV (NYSE:BUD) announced plans to expand its Columbus, Ohio, brewery as part of a $5 million investment. The expansion is part of a plan to enhance production capacity for Michelob ULTRA and Michelob ULTRA Zero products.
The expansion is also part of a $600 million Brewing Future initiative across the US operations. The company has set its sights on strengthening its position as a beverage industry giant. Part of the drive is to strengthen the ability to brew the highest-quality American beers that consumers love.
The company delivered solid first-quarter results, with 5.8% revenue growth and a 20.8% increase in earnings per share to $0.97. The earnings increase was driven by top-line growth, disciplined cost management, and favorable FX tailwinds. For the full year, EBITDA is expected to grow in line with the medium-term outlook of between 4% and 8%. The increase would come on the back of the beer category’s strength.
Anheuser-Busch InBev SA/NV (NYSE:BUD) is a multinational brewing and beverage Company that produces, distributes, and markets a wide variety of beers, canned cocktails, and non-alcoholic beverages. It operates as a subsidiary of AB InBev, the world’s largest brewer.
8. Caesars Entertainment, Inc. (NASDAQ:CZR)
Stock Upside Potential: 13.18%
Number of Hedge Fund Holders: 56
Caesars Entertainment, Inc. (NASDAQ:CZR) is one of the best sin stocks to buy now. On May 15, reports emerged indicating Tillman Fertitta is moving closer to acquiring Caesars Entertainment, Inc. (NASDAQ:CZR). Several banks have already committed to a multi-billion-dollar debt financing package.
Following these reports, on May 28, Caesars Entertainment, Inc. (NASDAQ: CZR) officially announced that it has entered into a definitive agreement to be acquired by Fertitta Entertainment, Inc. in an all-cash transaction valued at an estimated $17.6 billion.
Fertitta’s company, Fertitta Entertainment, is acquiring the company in a deal that will bring together two of the nation’s largest casino-hotel and restaurant empires. This will ultimately lead to a dynamic suite of gaming, entertainment, and restaurant brands.
Separately, on April 30, Macquarie raised its price target of Caesars Entertainment to $34 from $32 while maintaining an Outperform rating. The price target hike is in response to the company delivering solid first-quarter results with EBITDAR rising 1% year over year to $887 million.
Caesars Entertainment, Inc. (NASDAQ:CZR) is the largest casino-entertainment company in the U.S. It owns and operates over 50 resorts and casinos globally, blending gaming, hotel operations, dining, live entertainment, and mobile sports betting into a unified hospitality network.
7. RLX Technology Inc. (NYSE:RLX)
Stock Upside Potential : 23.15%
Number of Hedge Fund Holders: 17
RLX Technology Inc. (NYSE:RLX) is one of the best sin stocks to buy now. On May 20, RLX Technology Inc. (NYSE:RLX) was a big mover after the company delivered better-than-expected first-quarter results, characterized by robust revenue growth.
Amid an aggressive international expansion drive, net revenues increased 96.2% to $229.9 million, while gross margin improved to 31.8% from 28.6% in the same quarter last year. International operations accounted for 72.3% of total revenue, with growth in the segment driven by European expansion and momentum across the Asian segment.
On the other hand, adjusted net income was up 41.4% in the quarter to $51.8 million as adjusted earnings per share came in at $0.038. The better-than-expected results came as RLX Technology Inc. (NYSE:RLX) increasingly captures emerging market opportunities. RLX Technology is also benefiting from the integration of research and development, manufacturing, and commercial operations into Nexus that is driving greater supply chain efficiencies.
RLX Technology (NYSE: RLX) is a China-based, global e-vapor (vaping) company. It designs, develops, and manufactures a variety of electronic vapor products, including rechargeable closed-system devices, open-system products, and disposable vapes.
6. DraftKings Inc. (NASDAQ:DKNG)
Stock Upside Potential: 38.90%
Number of Hedge Fund Holders: 61
DraftKings Inc. (NASDAQ:DKNG) is one of the best sin stocks to buy now. On May 20, UBS reiterated a Buy rating on DraftKings Inc. (NASDAQ:DKNG) and a $43 price target. The bullish stance comes on the heels of the company announcing plans to combine its online sports betting revenue with sports prediction market revenue.
The changes come as the company expects the prediction market to have negative revenue in 2026, similar to the early days of online sports betting. However, it expects significant improvement with real prediction market revenue coming in 2027. In a bid to expand its presence in the prediction market, the company plans to spend $200 million to $300 million in 2026 on customer acquisition.
Customer acquisition costs are expected to be significantly lower for prediction markets. DraftKings could acquire customers for $200-$300 each and add up to 2 million players. As DraftKings continues to scale, grow revenue, expand profitability, and invest in high-return opportunities, it expects full-year revenue to range from $6.5 billion to $6.9 billion and adjusted EBITDA to range from $700 million to $900 million.
DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company that operates online and retail sports betting, daily fantasy sports (DFS) contests, online casinos (iGaming), and digital lottery ticket services. It also runs a prediction markets app and produces sports media content.
While we acknowledge the potential of DKNG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DKNG and that has 100x upside potential, check out our report about the cheapest AI stock.
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