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.
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 (NYSE:BTI) 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 (NYSE:BTI) 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. (NYSE:PM) 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. (NYSE:PM) 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. (NYSE:PM) 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. (NASDAQ:CGC) 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. (NASDAQ:CGC) 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. (NASDAQ:CGC) 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. (NYSE:TPB) 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. (NYSE:TPB).
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. (NYSE:TPB) 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.
While we acknowledge the potential of TPB 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 TPB and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best Tobacco and Cigarette Stocks to Invest In.
Disclosure: None. Follow Insider Monkey on Google News.
