In this article, we will take a look at the 10 Best Sin Stocks to Buy Right Now.
Sin stocks are companies that operate in morally or socially dubious sectors but frequently generate consistent profits. Usually, these sectors consist of gambling, alcohol, tobacco, and cannabis. Due to constant demand, these companies create reliable cash streams while catering to human immoralities and are usually subject to strict regulations. While some investors may view these stocks as good investment prospects, others more concerned with ethics, tend to steer clear of them.
There is an increasing demand for bottled alcoholic beverages and flavored drinks, particularly among younger generations. According to a survey by The Business Research Company, the global alcoholic beverages market was projected to be worth $544.19 billion by 2024. The market is estimated to increase at a compound annual growth rate (CAGR) of 5.4% from 2025 to 2029, reaching $709.13 billion at the end of the period.
On the other side, gambling stocks are on investors’ radar since casino and gaming companies provide defensive opportunities, as gambling continues to thrive even when the economy slows. The gambling industry is rapidly expanding on account of the rise of online gambling platforms, casino construction, and the widespread legalization of sports betting. According to a report by Mordor Intelligence, the global online gambling market is projected to reach $12.81 billion in 2030, with a CAGR of 16.5% between 2025 and 2030.
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 then ranked them according to the number of hedge funds that held stakes in them as of the second quarter of 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. RCI Hospitality Holdings, Inc. (NASDAQ:RICK)
Number of Hedge Fund Holders: 11
RCI Hospitality Holdings, Inc. (NASDAQ:RICK) ranks among the best sin stocks to buy right now. RCI Hospitality Holdings, Inc. (NASDAQ:RICK) reported third-quarter fiscal 2025 results on August 11, indicating that it is managing economic headwinds while executing its “Back to Basics” 5-Year Capital Allocation Plan.
The company recorded overall revenues of $71.1 million in Q3 2025, a decrease from $76.2 million in the same quarter last year. However, the company reported a net profitability of $4.1 million despite this fall, a substantial rise from the $5.2 million loss recorded in Q3 2024.
Despite a minor decline of 0.8% from the previous year, the Nightclubs segment, which represents RCI’s core business, showed resiliency with revenues of $57.5 million. Although same-store sales fell 3.7%, mirroring broader economic conditions, operating income jumped to $17.8 million.
RCI Hospitality Holdings, Inc. (NASDAQ:RICK) is a leading company involved in adult nightclubs and sports bars-restaurants, with over 60 locations through its subsidiaries.
9. Tilray Brands, Inc. (NASDAQ:TLRY)
Number of Hedge Fund Holders: 12
Tilray Brands, Inc. (NASDAQ:TLRY) ranks among the best sin stocks to buy right now. On August 25, Jefferies lifted its price target for Tilray Brands, Inc. (NASDAQ:TLRY) to $2 from $1.50, while maintaining a Buy rating on the company’s shares. The price target hike represents Jefferies’ belief that rescheduling cannabis from Schedule I to Schedule III in the US serves as a substantial government policy change that could favor Tilray.
Although this possible shift fell short of legalization, Jefferies says it is a step forward as Congress considers legislation around banking, access, and cannabis regulation. According to the firm, rescheduling might offer cannabis companies easier research opportunities and lower taxation, among other secondary benefits.
While acknowledging that the company could be “the biggest potential beneficiary” of these regulatory developments, Jefferies also pointed towards Tilray’s mounting challenges in its alcohol division.
Tilray Brands, Inc. (NASDAQ:TLRY) is an American pharmaceutical, cannabis-lifestyle and consumer packaged goods company, incorporated in the United States, headquartered in New York City.
8. British American Tobacco Plc (NYSE:BTI)
Number of Hedge Fund Holders: 18
British American Tobacco Plc (NYSE:BTI) ranks among the best sin stocks to buy right now. On August 21, British American Tobacco Plc (NYSE:BTI) announced plans to offer its first disposable vape in the United States. Although the product, known as Vuse One, has yet to be approved by the FDA, it could soon hit the market.
The tobacco company’s shift comes after years of lobbying lawmakers and mounting legal lawsuits to prohibit unlicensed disposable vapes, which claim that they pose a harm to users. Now, the demand for these products, which are often heavy in nicotine and have appealing flavors, has shot up, forcing BAT and competitors to reconsider.
The company’s U.S. spokesperson, Luis Pinto, emphasized that, instead of relying on FDA clearance, British American Tobacco Plc (NYSE:BTI) intends to use internal compliance procedures, including age verification and limited distribution.
British American Tobacco Plc (NYSE:BTI) is a British consumer goods company that manufactures and distributes tobacco and nicotine products, including regular cigarettes, heated tobacco, and oral nicotine pouches.
7. Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX)
Number of Hedge Fund Holders: 29
Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) ranks among the best sin stocks to buy right now. On August 22, HSBC reduced its price target for Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX) to $112 from $122, while retaining a Buy rating on the company’s shares. The adjustment comes as FEMSA engages in what HSBC calls a “generational leadership transition,” with the board slated to name a new CEO this year.
According to HSBC, FEMSA has excellent internal executive candidates who have demonstrated success at Oxxo, beverages, and in spearheading digital transformation. The CEO of the Proximity and Health Division, Jose Antonio Fernandez Garza, was specifically mentioned by the firm as a possible nominee.
Moreover, FEMSA’s board has been more in line with minority shareholders over the past two years by selling non-core assets and giving back capital to shareholders, though HSBC says there is still “more to do” in this area.
Fomento Económico Mexicano, S.A.B. de C.V. (NYSE:FMX), also known as FEMSA, is a multinational beverage and retail firm based in Monterrey, Mexico.
6. Brown-Forman Corporation (NYSE:BF-B)
Number of Hedge Fund Holders: 37
Brown-Forman Corporation (NYSE:BF-B) ranks among the best sin stocks to buy right now. On August 22, UBS maintained its Neutral rating on Brown-Forman Corporation (NYSE:BF-B) and raised its price target from $30 to $33 ahead of the company’s first-quarter earnings report. UBS also raised its earnings per share outlook from $0.36 to $0.38.
In its revised outlook, UBS mentioned cost pressures, currency changes, and modified expectations about consumer demand. The firm noted that since its challenging fourth-quarter report in early June, Brown-Forman’s stock has done well.
However, UBS stated that visibility into sequential improvement trumps value considerations at this time, implying that investors should wait for clearer signs of recovery before placing stakes in the stock.
Brown-Forman Corporation (NYSE:BF-B) manufactures, imports, exports, and markets a variety of alcoholic beverages. The company’s product line includes beverages like whiskies, tequila, vodka, ready-to-drink cocktails, and wine.
5. Penn Entertainment, Inc. (NASDAQ:PENN)
Number of Hedge Fund Holders: 51
Penn Entertainment, Inc. (NASDAQ:PENN) ranks among the best sin stocks to buy right now. Following a tour to Penn Entertainment, Inc. (NASDAQ:PENN)’s new land-based casinos in Illinois, Stifel maintained its Hold rating and $19 price target on the company on August 13. In addition to learning about the upcoming Aurora casino, which is expected to open in the first half of 2026, the analyst team also visited Penn’s recently opened Hollywood Joliet property, which debuted on August 11.
While adding that these returns might not be completely reflected in consensus estimates for fiscal year 2026, Stifel expressed confidence in its forecast of mid-teens percentage cash-on-cash returns for the two projects.
Although Stifel believes that Penn Entertainment, Inc. (NASDAQ:PENN) boasts an “increasingly attractive setup” with improved retail same-store cash flows and possible catalysts beginning in late 2025, the firm remains cautious due to macroeconomic uncertainty.
Penn Entertainment, Inc. (NASDAQ:PENN) offers integrated entertainment, sports content, and casino gaming experiences. The company consists of five segments: Northeast, South, West, Midwest, and Interactive. Its portfolio includes casinos, racetracks, and online sports betting in a number of locations.
4. Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Hedge Fund Holders: 52
Wynn Resorts, Limited (NASDAQ:WYNN) ranks among the best sin stocks to buy right now. On August 8, Macquarie maintained its Outperform rating on Wynn Resorts, Limited (NASDAQ:WYNN) and boosted its price target from $110 to $124, highlighting the company’s attractiveness as a “premium luxury value stock.”
The firm listed Wynn’s “irreplaceable brand and locations” as well as its undeveloped properties and ongoing construction in the UAE, which will likely be completed by 2027. Although measuring up to Vegas in 2025 will be difficult, Macquarie pointed out that the share price already seems to reflect this.
With a 14.5% increase in total casino revenues, the company set a new EBITDAR record for the second quarter in Las Vegas. Management reported that this encouraging trend persisted into July, with strong group/convention business projected for the fourth quarter and into 2026.
Wynn Resorts, Limited (NASDAQ:WYNN) is a luxury hotel and casino operator known for providing premium resort experiences and running high-end properties in Boston, Macau, and Las Vegas.
3. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 54
Altria Group, Inc. (NYSE:MO) ranks among the best sin stocks to buy right now. Stifel maintained a Buy rating on Altria Group, Inc. (NYSE:MO) shares on August 21 and raised its price target from $65 to $72. The upgrade comes after Altria’s board of directors approved a 3.9% hike in the company’s quarterly dividend to $1.06 from the previous $1.02. This increases the payout ratio to 78% based on fiscal year 2025 expected earnings per share, representing an annual payout of $4.24.
Since the company’s 2008 split, Altria Group, Inc. (NYSE:MO) has increased its dividend annually at a compound annual growth rate of around 8%, marginally surpassing its steady EPS growth trajectory during that time. Given the tobacco giant’s robust free cash flow generation, Stifel anticipates medium-term dividend growth in the mid-single digits.
Altria Group, Inc. (NYSE:MO) is a prominent American company that produces and markets tobacco, cigarettes, and associated products on a global scale. The firm has also ventured into next-generation nicotine products, such as oral nicotine pouches and electronic vaping devices.
2. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 66
DraftKings Inc. (NASDAQ:DKNG) ranks among the best sin stocks to buy right now. On August 22, Benchmark maintained a Buy rating and a $53 price target for DraftKings Inc. (NASDAQ:DKNG) as the sports betting company maneuvers the developing prediction markets landscape. According to the firm, the predictions market is set to be the next competitive battleground for industry giants such as DraftKings and its rivals in the US sports betting sector.
DraftKings Inc. (NASDAQ:DKNG) has not yet revealed its plan, though Benchmark listed a number of possible courses of action, such as regulatory filings, acquisition (rumors suggest Railbird), or hybrid models that might foster competitive uniqueness.
The firm specifically emphasized Railbird’s strategic significance, arguing that it is the only way to avoid the usual 12–18 month license clearance process and provide DraftKings Inc. (NASDAQ:DKNG) with instant access to prediction markets before the 2025 NFL season.
DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company that offers sports betting, digital lottery courier, daily fantasy sports, and other products. Additionally, it offers online casino games, including roulette, slot machines, blackjack, and baccarat.
1. Flutter Entertainment plc (NYSE:FLUT)
Number of Hedge Fund Holders: 87
Flutter Entertainment plc (NYSE:FLUT) ranks among the best sin stocks to buy right now. On August 21, Benchmark reaffirmed its Buy rating and $365 price target on Flutter Entertainment plc (NYSE:FLUT) following the company’s announcement of its partnership with CME Group.
Although it hadn’t specifically expected CME Group to be the venture partner, the firm acknowledged that it envisioned Flutter Entertainment plc (NYSE:FLUT) joining the predictions market. Benchmark noted that CME Group functions within a federally regulated system and has substantial expertise with transparent, compliant market structure.
With a launch scheduled for 2025, Benchmark said the partnership’s timeframe fits with its prior projections.
Flutter Entertainment plc (NYSE:FLUT) owns and operates some of the world’s largest and most popular sports betting and iGaming brands, including FanDuel, Sky Betting & Gaming, and Sportsbet, among others.
While we acknowledge the potential of FLUT 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 FLUT and that has 100x upside potential, check out our report about this cheapest AI stock.
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