In this article, we will take a look at some of the best tobacco and cigarette stocks, including companies operating in the e-cigarette and cannabis segments. On March 13, the U.S. Food and Drug Administration (FDA) took a small but important step toward licensing another vape brand, Glas, but only for its tobacco-flavored products. The FDA remains cautious despite new guidelines and is under pressure to speed up approvals that can take up to five years.
Currently, there are only 41 vapes on the approved list for sale in the U.S., which include tobacco and menthol flavors. As mentioned earlier, the FDA authorized Glas to sell only tobacco-related products in the U.S. It has also set a lower evidentiary bar for flavors such as coffee and spices, while maintaining stricter standards for fruit and candy vapes due to their greater appeal to youth. According to Mitch Zeller, a former director of the FDA’s Center for Tobacco Products, more flavor approvals could help adult smokers switch to vapes while reducing e-cigarette competition.
President of the Campaign for Tobacco-Free Kids, Yolanda Richardson, warned that broader flavored product access could attract young users, creating new nicotine addicts. How such a situation will impact the industry and people’s health remains uncertain, as the regulator faces conflicting pressures on both fronts.
With that background, let’s explore our 10 Best Tobacco and Cigarette Stocks to Invest In.
Our Methodology
To identify relevant stocks for this article, we screened for U.S.-listed tobacco and cigarette companies with market capitalizations above $200 million. We also included names from the e-cigarette and cannabis segments. We only shortlisted stocks with at least 15% upside potential, according to consensus, as of the April 15 close. Finally, we selected 10 stocks with the highest upside and ranked them in ascending order.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
10. Tilray Brands Inc. (NASDAQ:TLRY)
Tilray Brands Inc. (NASDAQ:TLRY) is one of the 10 best tobacco and cigarette stocks to invest in.
There are obvious reasons to be optimistic about this medicinal cannabis play. On April 2, Bill Kirk from Roth Capital upgraded Tilray Brands Inc. from Neutral to Buy while maintaining a price target of $10. The reasons put forward by the analyst for the upgrade included the stability of the company’s Canadian business, a turnaround in its international operations, and an improvement in the beverages segment.
The analyst also noted that the stock price of Tilray is back at levels last recorded in July 2025. The company’s fundamentals have turned positive, and chances of regulatory change have increased, according to the analyst.
On April 2, Alliance Global reduced the price target on Tilray Brands Inc. from $9 to $7 while maintaining a Neutral rating on the shares. The firm reflected on Tilray’s third-quarter sales miss. Despite that, the stock offers attractive exposure to an expanding medicinal cannabis market. The company benefited from its cost-saving initiatives, resulting in EBITDA exceeding expectations. According to Alliance Global, uncertainty about the ban on hemp was the rationale for the price target reduction.
Tilray Brands Inc. is involved in growing, researching, and selling medicinal cannabis products. Alongside this, it markets and resells wellness and pharmaceutical products, beverages, and food products made of hemp. Additionally, it also provides goods for entertainment. Its products are sold through several channels, including pharmacies, retailers, and wholesalers.
9. British American Tobacco PLC (NYSE:BTI)
British American Tobacco PLC (NYSE:BTI) is one of the 10 best tobacco and cigarette stocks to invest in.
On April 13, Goldman Sachs analyst Bonnie Herzog reported a price hike of around 3% by Altria Group Inc. (NYSE:MO) on its Marlboro product line in the United States. Herzog expects British American Tobacco plc (NYSE:BTI) to follow suit by hiking prices on its R.J. Reynolds products. The analyst noted that the industry is seeing continued strength in net price realization, driven by manufacturers’ strong pricing power.
On March 26, British American Tobacco PLC was awarded the Digital Transformation Award during the Verdantix Transform Summit. This reflects the company’s efforts to leverage advanced digital technologies aimed at sustainability and climate progress, making it a standout tobacco name for investors to consider.
The key factor that helped the company stand out is its Digital Sustainability Control Tower. This is a platform that enables data-driven reporting by the company across major sustainability metrics. Additionally, the platform also helps the company to automate Scope 3 data for greater accuracy and efficiency. Jonathan Upward, Group Head of Sustainability, stated:
“This achievement is testament to the strong collaboration across BAT and our strategic partners, and it highlights our continued commitment to building the digital capabilities that underpin our sustainability ambitions and support long term value creation.”
British American Tobacco PLC is the worldwide seller of nicotine and tobacco products. Its product portfolio includes vapor products, heated products, modern and traditional oral products, and fine-cut and roll-your-own tobacco products. Its products are sold under various brands, including Velo, Dunhill, Pall Mall, and more.
8. Philip Morris International Inc. (NYSE:PM)
Philip Morris International Inc. (NYSE:PM) is one of the 10 best tobacco and cigarette stocks to invest in.
As a household name, there are several recent commercial developments that could entice investors who are looking for quality tobacco stocks. On April 13, Philip Morris International Inc. stated that it will serve as Ferrari Hypersail’s Principal Partner. According to the Group CEO Jacek Olczak, Ferrari’s aggressive goal of setting records at sea perfectly embodies the changes the organization has undergone over time. This collaboration is driven by the futuristic idea that old issues can be solved using modern technological advancements when complemented by human creativity.
Olczak also claims that this achievement is far from being a standard company statement. Rather, it is the continuation of a long-standing relationship that started more than five decades ago. In the long run, this collaboration marks a new direction full of great ambitions and challenges, and driven by the strong belief in the importance of progress.
Earlier on April 10, Matthew Smith from Stifel reduced the price target on Philip Morris International Inc. from $200 to $195 while maintaining a Buy rating on the shares. Smith maintains a positive outlook for tobacco stocks ahead of first-quarter earnings. The analyst sees attractive upside, supported by smoke-free volume growth, a resilient cigarette business, and accelerating earnings growth through 2026.
Philip Morris International Inc. operates as a global tobacco company. Apart from cigarettes, its product portfolio also includes various smoke-free products, wellness products, and consumer accessories. These are being sold under different brands such as ZYN, IQOS, and VEEV.
7. Canopy Growth Corp. (NASDAQ:CGC)
Canopy Growth Corp. (NASDAQ:CGC) is one of the 10 best tobacco and cigarette stocks to invest in.
With the cannabis market attracting significant investor interest, Canopy Growth Corp. could be an attractive opportunity. On March 31, the company introduced Deelish, which is a cannabis line catering to the value segment. The CEO, Luc Mongeau, described the value category as one of the most active categories in the Canadian cannabis industry. Mongeau believes that people are aware of what they need, and this product caters to their needs by offering a very potent marijuana product at a value price level consistent with their purchases.
What also makes Canopy Growth Corp. a highly captivating cannabis player is its inorganic growth strategy. Back on March 16, it reported the successful acquisition of all outstanding shares of MTL Cannabis Corp. (CSE: MTLC). This strategic acquisition is primarily motivated by the goal of forming Canada’s leading medical cannabis platform, while boosting the supply of premium flower into regulated international markets such as Europe.
At the same time, management believes that acquiring a highly profitable entity will enable the company to meet its strategic goal of generating positive adjusted EBITDA for the entire fiscal year of 2027. Additionally, this acquisition also enhances the overall capabilities of the business. Luc Mongeau stressed that this marked another step towards profitability and better operations.
Canopy Growth Corp. manufactures and distributes cannabis, hemp, and items associated with cannabis. The company sells a number of products, which include dried flower and pre-rolled joints, extracts and concentrates, and cannabis edibles. It sells its products under different brands like Storz & Bickel, Tweed, 7ACRES, and more.
6. Turning Point Brands Inc. (NYSE:TPB)
Turning Point Brands Inc. (NYSE:TPB) is one of the 10 best tobacco and cigarette stocks to invest in.
On April 9, Turning Point Brands Inc. entered into a long-term agreement with TKO Group Holdings Inc. (NYSE:TKO). This partnership seamlessly connects adult nicotine users to tailored integrations and targeted experiences across six distinct TKO-affiliated properties. This deal has also made TPB the official Nicotine Pouch Partner for UFC, Zuffa Boxing, PBR, UFC BJJ, Formula Drift, and the IMG-owned World’s Strongest Man.
At the same time, these diverse assets successfully provide an unmatched direct reach into some of the most intensely involved and fervent adult fan audiences in the broader sports industry.
On April 1, the United States Food and Drug Administration’s strategy to expedite the approval process for nicotine pouches encountered an obstacle. The FDA’s pilot program is aimed at speeding up evaluations for tobacco products offered by several companies, including Turning Point Brands Inc..
Concerns have been raised over the science behind this decision and the potential risk of developing new nicotine consumers, especially among teenagers. The FDA initiated this experiment amid pressure to streamline its review process, but is allegedly still unsure whether they have enough information to consider both the benefits to adult smokers and the risks posed to adolescents.
Turning Point Brands Inc. produces and sells branded consumer products. Its product portfolio includes rolling papers, finished cigars, loose-leaf chewing tobacco, and more. Alongside tobacco products, it is also involved in the marketing and sales of cannabis accessories. It operates through several channels, which include wholesalers, retailers, and drug stores, to name a few.
5. Village Farms International Inc. (NASDAQ:VFF)
Village Farms International Inc. (NASDAQ:VFF) is one of the 10 best tobacco and cigarette stocks to invest in.
On April 9, Village Farms International Inc. announced that its Canadian cannabis brand, Pure Sunfarms, has rolled out potency-range labeling on cannabis packaging for Pink Kush in British Columbia. This is the first instance of THC potency ranges being featured on dried cannabis flower ever in Canada’s recreational marketplace.
Rather than listing THC potency as a single value, the redesigned packaging now lists potency in a range, reflecting the consistency of the cultivar throughout the growing season.
Orville Bovenschen, the Global President of Operations for Village Farms International, shared that THC potency ranges acknowledge that cannabis is an agricultural crop with natural biological variations. Bovenschen highlighted that the range provides consumers with a clearer and more honest picture of what they are buying. Pink Kush was selected to be the first product because it is one of the leading SKUs in the nation. Initial customer surveys have proven that there is a great deal of interest from consumers in the new concept.
Village Farms International Inc. is engaged in the production and supply of cannabis goods to authorized vendors and provincial governments around the world. The company also offers wellness and cannabinoid-based health products, including edibles and ingestibles. It is also a supplier of cannabis products for certain authorized coffee shops.
4. Organigram Global Inc. (NASDAQ:OGI)
Organigram Global Inc. (NASDAQ:OGI) is one of the 10 best tobacco and cigarette stocks to invest in.
On April 15, Organigram Global Inc. finalized the acquisition of Sanity Group, following an SPA signed back in February. The company acquired all outstanding shares of Sanity for a total consideration of around EUR 107.3 million. This includes upfront cash payment amounting to EUR 78 million, and the remaining EUR 29.3 million in shares. This deal bolsters the company’s future prospects, making it a lucrative investment option within the cannabis segment.
A chunk of this upfront cash payment was financed through the company’s Jupiter strategic investment pool, which was established back in 2024 to finance the company’s international growth plans. The pool received funding from British American Tobacco PLC, which reflects institutional confidence in the company’s ambitions for international expansion. This could prove to be a crucial factor that draws investor interest in Organigram Global Inc..
In relation to this transaction, Organigram Global Inc. also concluded its senior secured credit facilities amounting to around C$60 million. Moreover, it also closed its private placement arrangement with BT DE Investments, which resulted in gross proceeds of more than EUR 40 million.
Organigram Global Inc. is a producer of cannabis and related products. It sells various medical cannabis products across Canada, which include whole flower, milled flower, infused pre-rolls, gummies, and more. The company also offers recreational cannabis products for adults and is engaged in the wholesale of cannabis plants to authorized manufacturers.
3. Aurora Cannabis Inc. (NASDAQ:ACB)
Aurora Cannabis Inc. (NASDAQ:ACB) is one of the 10 best tobacco and cigarette stocks to invest in.
As of April 15 closing, broader consensus sentiment around Aurora Cannabis Inc. was strongly bullish. The stock received coverage from 3 analysts, all of whom assigned Buy ratings. With a median 1-year target price of $6.68, it yields more than 85% upside potential at the current level, making it an attractive investment opportunity within the cannabis space.
Another interesting aspect of the case is the company’s inorganic growth strategy. On April 15, it acquired Safari Flower Co., a company engaged in the cultivation and manufacturing of cannabis. This stock-and-cash deal is valued at a sum of around $26.5 million and involves a $2 million contingent cash payment.
The transaction gives Aurora access to Safari’s 59,000-square-foot Ontario facility for indoor cultivation and manufacturing. Aurora views this acquisition to be in line with the company’s expansion strategy, which will also facilitate penetration into international markets. It is pertinent to mention that the Ontario facility holds the EU Good Manufacturing Practices certification, which would enable access to the EU region.
Aurora Cannabis Inc. is a producer and seller of cannabis and related products. The company is also engaged in pharma-grade medical cannabis and related consumer cannabis products. Other offerings include floral plants, dried cannabis, concentrates, capsules, edible cannabis, and cannabis topicals.
2. High Tide Inc. (NASDAQ:HITI)
High Tide Inc. (NASDAQ:HITI) is one of the 10 best tobacco and cigarette stocks to invest in.
As of the April 15 close, High Tide Inc. had a strongly bullish consensus sentiment. The stock received coverage from 5 analysts, all of whom assigned Buy ratings. With a median 1-year target price of $5.18, it currently offers more than 121% potential upside to investors.
On March 19, Canaccord Genuity reiterated its Buy rating for High Tide Inc.. The firm also increased the target price on the stock from $5.08 to $5.26, resulting in an adjusted upside potential of almost 126%.
Back on March 4, High Tide Inc. and its subsidiary, NuLeaf Naturals, became inaugural members of the National Compassionate Care Council. The council consists of healthcare-oriented organizations operating within the medicinal cannabis industry that emphasize quality, research, and patient results.
The CEO of High Tide, Raj Grover, stated that the United States’ policy regarding cannabis is undergoing an important transformation. Grover observed that by creating health-oriented brands such as NuLeaf Naturals and FAB CBD, his company has established itself as an expert in meeting the needs of consumers interested in cannabinoid-based treatments under appropriate regulation. Grover stated that the company would be able to assist in the development of medical marijuana policies at the federal and state levels, ensuring better access to such treatments for patients.
High Tide Inc. operates within the cannabis retail industry, with operations around the globe. The company runs its business through three channels, which include physical stores, e-commerce, and medical cannabis distribution. Its portfolio involves the production and sales of products derived from cannabis and hemp, consumption accessories, advertising services, and more.
1. SNDL Inc. (NASDAQ:SNDL)
SNDL Inc. (NASDAQ:SNDL) is one of the 10 best tobacco and cigarette stocks to invest in.
As of April 15 closing, consensus sentiment around SNDL Inc. was moderately bullish. The stock received 2 Buy ratings and carries a median 1-year target price of $4.75. This leads to a lucrative upside potential of 247% at the current level.
On March 12, SNDL Inc. announced its fourth quarter results, where the company exhibited highly impressive financial performance. CEO Zack George reflected on the year 2025, which played an important role in the company’s financial success and strategy. He highlighted that the company was also able to maintain its focus on long-term sustainability and the profitability of the business. He stated:
“2025 represents another step forward in financial performance and strategic focus for SNDL (SNDL). We are pleased to report new records across our income statement and free cash flow, while continuing to transform our business to support long-term, sustainable, and profitable growth. We are strengthening our performance culture and organizational capabilities, providing a solid foundation as we continue to raise the bar toward our vision of becoming a global leader in our industry.”
SNDL Inc. is engaged in producing, distributing, and selling cannabis products for adult and medicinal use. Through its retail banners, the company also sells beers, wines, and spirits. Through its corporate-owned and franchised stores, it also privately sells cannabis items and accessories for adult use. Additionally, it manufactures and sells vapes, pre-rolls, and flower while also providing proprietary cannabis processing services.
