In this article, we will discuss: 10 Best Tobacco and Cigarette Stocks to Buy Now.
Cigarette and tobacco stocks are companies that produce and sell cigars, snuff, chewing tobacco, cigarettes, e-cigarettes, and all other tobacco products.
The tobacco industry has long been a huge winner for investors. Tobacco companies were among the top performers during the 20th century because of their reputation for providing investors with substantial dividend yields as well as their addictive, extremely profitable, and recession-proof product. However, tobacco firms now confront a different set of challenges. Globally, smoking rates have been progressively declining, particularly in the United States, as a result of growing legislation and health concerns. The industry has attempted to shift to next-generation products as a result. Some people believe that e-cigarettes, vaporizers, and chewable nicotine pouches are healthier options since they avoid some of the negative aspects of smoking cigarettes, such as unpleasant odors. Some companies are expanding beyond tobacco, working with cannabis businesses to capitalize on the potential development in a market that shares numerous similarities with tobacco. There are other hazards associated with tobacco stocks, such as heightened regulation and a decline in smoking rates.
According to the Centers for Disease Control and Prevention, the number of tobacco farms in the United States decreased from 93,530 in 1997 to roughly 3,000 in 2022. Nonetheless, the USA was the world’s fifth-largest producer of tobacco in 2021, harvesting 431.6 million pounds in 2022, compared to 1.74 billion pounds in 1997. Seventy-seven percent of U.S. production came from North Carolina or Kentucky. Price reductions accounted for $5.7 billion (72%) of the $8.6 billion tobacco businesses spent on advertising in 2022, which included $572.7 million for smokeless tobacco and $8.01 billion for cigarettes. Marketing costs for e-cigarettes came to $859.4 million in 2021. Sales of cigarette packs fell from 12.5 billion to 9.1 billion packs between 2015 and 2021, a 27% decrease. In 2024, the average cigarette tax in each state was $1.93, while the federal tax was $1.01.
Despite the industry’s weak revenue and profit development, investors continue to be drawn to these stocks due to their consistent dividends, profitability, and solid profit margins. Investors believe that stronger growth will eventually be catalyzed by next-generation products.
However, on April 2, 2025, the U.S. Supreme Court upheld the FDA’s decision to deny approval for flavored e-cigarettes in a major decision. According to Justice Samuel Alito, vape producers were given “adequate notice” of the FDA’s review criteria. In this case, businesses like Vapetasia and Triton Distribution applied for certification for products such as “Mother’s Milk and Cookies” and “Killer Kustard Blueberry.”
The FDA has been regulating vaping products since 2016, claiming that flavored vapes represent a health concern and may encourage young people to use tobacco. More than 2.1 million youths in the US reported using e-cigarettes in 2023, with 10% of high school students vaping. The FDA has rejected thousands of flavored products and has only approved tobacco and menthol flavors. One specific issue, marketing plan consideration, was returned to lower courts after the Supreme Court reversed the 5th Circuit’s prior criticism of the FDA’s changing criteria. Companies that promote unapproved products risk “civil and criminal penalties,” the FDA warned.
With that said, here are the 10 Best Tobacco and Cigarette Stocks to Buy Now.
A farmer surveying a field of tobacco plants in the late evening sun.
Our Methodology
For this article, we sifted through the online rankings to form an initial list of the 15 Tobacco and Cigarette Stocks. We have also included e-cigarette and cannabis companies. From the resultant dataset, we chose 10 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock’s market cap as of April 25, 2025, as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
10. Aurora Cannabis Inc. (NASDAQ:ACB)
Number of Hedge Fund Holders: 6
Aurora Cannabis Inc. (NASDAQ:ACB), a Canadian company with its headquarters located in Edmonton, grows and markets cannabis for both medical and recreational purposes under several brands, including Drift, San Rafael ’71, Daily Special, Whistler, Being, and Greybeard. Although the company is largely based in Canada, it has expanded globally through medical cannabis export agreements. It is one of the Best Tobacco Stocks.
The third quarter of 2025 was a strong period for Aurora Cannabis Inc. (NASDAQ:ACB), as its earnings per share of $0.41 greatly exceeded forecasts by $0.42. The business produced a record adjusted EBITDA of $23.1 million, up 316% YoY, and a record net income of $31.2 million, up 282% YoY. Furthermore, Q3 revenue exceeded projections by 28.73% YoY to $61.62 million, led by record-breaking global medical net revenue. The company’s globalization plan is working; its overseas sales climbed by 112% in the medical cannabis industry. International revenue outpaced Canadian medicinal cannabis for the second consecutive quarter. In 2025, ACB also produced $27.4 million in free cash flow during the third quarter.
Setting new benchmarks in cannabis science, Aurora Cannabis Inc. (NASDAQ:ACB) operates a top-notch genetics and research facility in Canada. The business recently revealed that it has found a new genetic source of resistance to powdery mildew in cannabis sativa, which offers strong protection against this pathogen. The innovation, which is currently being used in its breeding program, provides a vital answer to a major problem facing the cannabis business globally.
9. Canopy Growth Corporation (NASDAQ:CGC)
Number of Hedge Fund Holders: 8
Canopy Growth Corporation (NASDAQ:CGC), based in Smiths Falls, Canada, produces and sells medicinal and recreational cannabis, as well as hemp, under a portfolio of brands that includes Doja, 7ACRES, Tweed, and Deep Space. Its non-THC products include vaporizers from Storz & Bickel and skincare products sold under the Martha Stewart CBD brand. The US assets of the firm were combined into Canopy USA, a holding company that operates independently and will not be included in the Canadian business’s financial statements. It is among the Best Tobacco Stocks.
Canopy Growth Corporation (NASDAQ:CGC) posted a Q3 2025 EPS of -$0.78, much worse than the -$0.39 expectation. Nevertheless, despite a 21.77% YoY decline, the company’s $52.35 million in revenue exceeded forecasts by $4.9 million. All of its medical cannabis businesses saw significant growth, and the company’s net sales from overseas markets increased by 14% year over year, with Poland and Germany seeing particularly high growth. Furthermore, the firm’s Storz & Bickel division in Germany, which produces high-end, high-margin products like the Venti and Volcano, produced a rise of 19% in net revenue overall.
In Q3 2025, Canopy Growth Corporation (NASDAQ:CGC)’s free cash flow was approximately $19.52 million, 17% better than the previous year. Recently, the business introduced a new at-the-market equity program that permits the issue and sale of up to $200 million in common shares to strengthen its balance sheet.
8. Cronos Group Inc. (NASDAQ:CRON)
Number of Hedge Fund Holders: 16
Market Cap as of April 25: $690.08 million
Cronos Group Inc. (NASDAQ:CRON), with its headquarters located in Toronto, Canada, grows and markets cannabis for both medical and recreational purposes under the Peace Naturals medical brand and the Cove and Spinach recreational brands. The firm’s exports of medical cannabis are mostly to Israel, yet it operates primarily in Canada. The company has the option to purchase a fully diluted 5.9% stake in the U.S. multistate operator PharmaCann upon the easing of federal prohibition. It is ranked eighth on our list of the Best Tobacco Stocks.
Cronos Group Inc. (NASDAQ:CRON) produced impressive results in 2024, growing its annual revenue by 35% year over year due to excellent performance in Israel, Canada, and other international markets. The company’s increased operational efficiency was evident in its adjusted gross margins, which nearly doubled and improved by 12 percentage points for the entire year 2024. Its Spinach brand became Canada’s biggest cannabis brand in terms of market share, with a focus on edibles, flower, and vapes. Furthermore, the company has $859 million in cash and cash equivalents, which puts it in a solid financial position for future growth and expansion.
As a result of successful international development initiatives, especially in Germany and the UK, adjusted EBITDA increased by 45% year over year, showing encouraging growth prospects. Significant R&D progress was also made by Cronos Group Inc. (NASDAQ:CRON), as breeding initiatives and developments in cannabis genetics produced new strains and increased yields of cannabinoids.
7. Universal Corporation (NYSE:UVV)
Number of Hedge Fund Holders: 16
Market Cap as of April 25: $1.43 billion
Universal Corporation (NYSE:UVV) supplies leaf tobacco all over the world. The business buys leaf tobacco from farmers, processes it, and then sells it to businesses that produce tobacco products for consumers. The company does not produce or sell its own consumer items. Its segments are Tobacco Operations and Ingredients Operations. The Tobacco Operations segment yields the highest revenue. Geographically, the United States accounts for the majority of its revenue. Its stock surged by more than 5% YTD, making it one of the Best Tobacco Stocks.
In its fiscal Q2 2025 report, Universal Corporation (NYSE:UVV) revealed impressive earnings. This achievement was fueled by strong customer demand in its Tobacco Operations business and larger, higher-quality crops with higher yields from Africa. It is anticipated that the category would maintain its strong performance throughout the second half of the fiscal year. Despite challenges from escalating food prices, the business has been expanding the firm’s market position and drawing attention from both new and current clients. The substantially expanded ingredients factory is expected to increase production and strongly improve fiscal year 2026 profits.
Revenue for Universal Corporation (NYSE:UVV) was close to $711 million. The company’s future goals include expanding the ingredients division, streamlining its tobacco business, and finding ways to collaborate. Additionally, the company’s cash situation remained strong, with almost $80 million in cash after the quarter.
6. Tilray Brands, Inc. (NASDAQ:TLRY)
Number of Hedge Fund Holders: 19
Market Cap as of April 25: $496.16 million
Tilray Brands, Inc. (NASDAQ:TLRY) is a Canadian company that grows and markets cannabis for both medical and recreational purposes. Through a reverse merger, legacy Aphria purchased legacy Tilray in 2021 and changed its name to Tilray. Canada and the global medical cannabis export market account for the majority of the company’s sales. CBD products and alcohol are the primary sources of exposure in the United States.
In Q3 of 2025, the firm’s cannabis gross margin increased by 800 basis points year over year to 41%, the highest level in over two years, showing increased profitability. Significant international growth was also recorded by the company, with revenue rising both quarter over quarter and year over year in major markets, including Germany, Italy, Luxembourg, and Portugal. Furthermore, Tilray Brands, Inc. (NASDAQ:TLRY)’s sales of medical cannabis flowers in Germany soared by 79% after legalization.
In Q3 of 2025, the company advanced its Project 420 cutting expenses drive, increasing the target to $33 million and attaining $20.6 million on an annual basis. Tilray Beverages produced $55.9 million in net revenue in the beverage category, with gross margins climbing to 36% from 34% in the same quarter last year. Tilray Brands, Inc. (NASDAQ:TLRY) strengthened its financial position by holding $248 million in cash and marketable securities and lowering its net debt to about $50 million, making it among the Best Tobacco Stocks.
5. RLX Technology Inc. (NYSE:RLX)
Number of Hedge Fund Holders: 19
Market Cap as of April 25: $2.18 billion
RLX Technology Inc. (NYSE:RLX) manufactures e-vapor products for adult smokers. Its “Branded store plus” retail concept and integrated offline distribution are specifically designed for the Chinese e-vapor market.
The company had a great year in 2024, growing its revenue for the seventh straight quarter and achieving a 73% YoY rise in full-year revenues. In 2024, RLX Technology Inc. (NYSE:RLX) achieved a non-GAAP operating income of RMB 262.5 million for the entire year, and its gross profit margin climbed to 26.4%. Following the conclusion of a major noncompete agreement in November 2023, international expansion and a successful localized strategy for multiple areas were the main drivers of this financial achievement. It is one of the Best Tobacco Stocks.
The firm’s gross profit margin grew by two percentage points to 26.4% for the entire year. The gross profit margin climbed to 27.2% in the fourth quarter, up 3.3 percentage points from the previous year. In the fourth quarter, operating cash inflow was RMB 497 million, and as of December 31, 2024, total financial assets were RMB 15.9 billion. Furthermore, RLX Technology Inc. (NYSE:RLX) obtained a double A grade from MSCI, the highest ESG rating in the global tobacco market.
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.
3. Turning Point Brands, Inc. (NYSE:TPB)
Number of Hedge Fund Holders: 30
In the United States, Turning Point Brands, Inc. (NYSE:TPB) manufactures, markets, and distributes consumer goods, including other tobacco products (OTP). The company provides a wide range of items across the OTP spectrum, such as premium cigarette papers, make-your-own cigar wraps, cigars, liquid vapor products, tobacco vaporizers, and moist snuff tobacco. It is divided into two business segments: Stoker’s products and Zig-Zag products. The Zig-Zag product category brings in the majority of revenue for the business. The stock soared by more than 108% in the past year, making it on our list of the Best Tobacco Stocks.
Turning Point Brands, Inc. (NYSE:TPB) had a strong Q4 2024 due to strong core business execution. The firm’s management gave encouraging advice and unveiled new metrics that showed the expansion of its tobacco-free nicotine pouches, a promising market-share-gaining area.
Alliance Global Partners maintained its Buy rating on Turning Point Brands, Inc. (NYSE:TPB) shares and increased its price objective from $80 to $85 for the company. In a research note, the analyst informs investors that the company’s Q4 sales and EBITDA figures were at the upper end of its tentative range. According to the company, net-for-net, the results are encouraging, and it anticipates that 2025 will be the firm’s statement year in the pouch category, giving investors confidence that it can repeat its strategy of acquiring market share in a large tobacco-dominated category, as it did with Stoker’s.
2. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 47
Altria Group, Inc. (NYSE:MO) is one of the Best Tobacco Stocks headquartered in Virginia. It produces a variety of connected goods, such as cigarettes and other products that contain nicotine. The company’s business model tends to endure well in times of market and economic turmoil, and it also specializes in nicotine products. The US is seeing a decline in traditional cigarette consumption, but overall demand for nicotine is still stable. The business has a lot of advantages because it owns about half of the US market. These include cost savings from its size, significant bargaining power with retailers since it owns popular brands like JUUL and Marlboro, and the capacity to make larger investments than rivals in more recent nicotine substitutes, including smokeless products.
Altria Group, Inc. (NYSE:MO) reported $5.11 billion in revenue for the last quarter of 2024, a 1.63% year-over-year gain that was $59.6 million higher than analyst projections. Improved margins and strong performance across its main tobacco brands helped to fuel the expansion. Furthermore, the business kept investing in projects that promote long-term growth. It projects adjusted diluted EPS for 2025 to range from $5.22 to $5.37, representing a 2% to 5% growth over its 2024 earnings of $5.12 per share.
Citi increased its target price for Altria Group, Inc. (NYSE:MO) from $52 to $55. Given the challenging U.S. environment and NJOY’s delisting, the company anticipates a “weak” first quarter for the firm. Citi, however, sees “solid On!” volume growth.
1. Philip Morris International Inc. (NYSE:PM)
Number of Hedge Fund Holders: 102
With sales of cigarettes in almost 170 countries, Philip Morris International Inc. (NYSE:PM) is one of the biggest tobacco firms in the world. The company aims to replace its cigarette sales with lower-risk alternatives despite its supremacy. Although its target of two-thirds of sales by 2030 seems ambitious, as of 2024, almost 40% of revenue came from smoke-free items. By 2029, Morningstar analysts anticipate that this percentage will have increased to about 50%. This does not indicate that analysts expect PMI to underperform in reduced-risk, but rather the consistent and significant contributions from traditional smokeable items. The stock grew by more than 39% YTD, making it the Best Tobacco Stock.
The smoke-free products of Philip Morris International Inc. (NYSE:PM) were sold in 95 markets as of December 31, 2024, and 38.6 million adults globally were estimated to be using them. The smoke-free division of the company generated 42% of its total net revenues in the first quarter of 2025. Despite the secular drop in smoking worldwide, combustibles expanded 4%, while smoke-free grew 20% organically. The investment management company, Andvari Associates, published its investor letter for the first quarter of 2025. The fund said as follows:
“Last year, Andvari made its first investments in tobacco companies with the purchase of Philip Morris International Inc. (NYSE:PM) and Altria. At the time of our purchase, Philip Morris and Altria had underperformed the S&P 500 over the prior 5- and 10-year periods. Both traded at low valuations and with high dividend yields. But thanks to following the industry on and off for 10+ years, and thanks to many discussions with long-time shareholders of the companies, Andvari felt the time was right to make the plunge. The timing could not have been much better for us, as both companies have so far contributed positively to Andvari’s recent overall performance.
The problem—or the feature, depending on your perspective—with the tobacco industry has been a declining population of cigarette smokers in developed countries. Over the last four or five years, the decline in these smoking populations has accelerated, which in part explains the poor share performance of the tobacco companies between 2017 and 2023. Despite this, the tobacco companies have maintained, or slowly increased, their revenues and profits with regular price increases on cigarettes…” (Click here to read the full text)
Overall, PM ranks first among the 10 Best Tobacco and Cigarette Stocks to Buy Now. While we acknowledge the potential of tobacco and cigarette companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stock To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. 10 Best Tobacco and Cigarette Stocks to Buy Now is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
