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. (NASDAQ:TLRY) 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. (NASDAQ:TLRY) 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. (NASDAQ:TLRY) 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.
