10 Best Tobacco and Cigarette Stocks to Buy Now

4. British American Tobacco p.l.c. (NYSE:BTI)

Number of Hedge Fund Holders: 25

In 2017, British American Tobacco p.l.c. (NYSE:BTI) acquired Reynolds American for $49 billion, which helped it grow into a major player in the market. In addition to next-generation goods like Velo nicotine packets, Vuse for vaporizing, and Glo for smoking HNB, the firm now owns a variety of well-known cigarette brands, including Camel, Newport, Dunhill, Natural American Spirit, and Lucky Strike. It is ranked fourth on our list of the Best Tobacco Stocks.

British American Tobacco p.l.c. (NYSE:BTI) is committed to making a significant shift to next-generation products, just like other tobacco companies. The company’s cigarette sales volume dropped 6.8% to 250 billion in the first half of 2024. Nicotine pouches have become the new category sector with the fastest rate of growth, with revenue rising 44% to 311 million pounds (about $411 million at current exchange rates) and volume sales up 43% in the first half. Nonetheless, cigarettes continue to generate the great majority of the company’s income. The company stated that it was unlikely to reach its 2025 revenue target of 5 billion pounds (almost $6 billion) from next-generation items in July because of a U.S. crackdown on single-use products.

Velo, the main pouch brand owned by British American Tobacco p.l.c. (NYSE:BTI), has been growing in popularity, particularly since the launch of Velo Plus, a new product line that offers softer, larger pouches, more nicotine, and more affordable prices. The company’s Velo has performed exceptionally well; in March 2025, its 4-week rolling volume share in the U.S. reached 7.9%, representing 185% year-over-year growth. Velo Plus alone took a 5.4% market share just 12 weeks after its debut and currently accounts for over 70% of all Velo sales.

Investing in British American Tobacco p.l.c. (NYSE:BTI) offers exposure to the tobacco industry globally, not just in the United States or globally, which is a benefit over Altria and Philip Morris. The business also offers a variety of other products, such as heated tobacco, chewing tobacco, vaporizers, and cigarettes.