In this article, we will take a look at the 8 Best Sin Stocks to Buy in 2026.
Sin stocks are companies that operate in ethically or socially questionable sectors but produce consistent profits. Typically, these areas include gambling, alcohol, tobacco, and cannabis. Due to constant demand, these companies generate consistent income flows while catering to human immoralities and are typically subject to tough regulations. While some investors may see these stocks as promising investment opportunities, others who are more concerned with ethics prefer to avoid them.
The alcohol sector has been struggling as of late. According to Bloomberg, the market value of shares in the world’s largest beer, wine, and spirits makers has fallen by $830 billion in just four years. The slowdown has been worsened by US tariffs, high interest rates that reduce consumer spending, and rising commodity costs. That said, Bloomberg cites changing consumer behavior as the primary challenge in the market. As evidence, a Gallup survey carried out in August found that alcohol consumption in the US has reached its lowest level since records began in 1939.
Meanwhile, the US gaming sector is under increasing pressure from a strained consumer. Although casino attendance may remain consistent, spending on each visit is becoming more conservative. Players appear to be focusing more on vital entertainment while reducing higher-margin activities, such as premium table games and extended resort stays. This “wallet fatigue” is most notable in regional casinos, since gaming spending is strongly related to local economic situations and consumers living paycheck to paycheck.
Pixabay/Public Domain
Our Methodology
To compile our list of the best sin stocks to buy right now, we reviewed our own rankings, financial reports, and other online resources to look for U.S.-listed companies that fall into the category of ‘unethical’ or ‘sin’. We then ranked them according to the number of hedge funds that held stakes in them as of the third quarter of 2025.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
8. Aurora Cannabis Inc. (NASDAQ:ACB)
Number of Hedge Fund Holders: 8
Aurora Cannabis Inc. (NASDAQ:ACB) ranks among the best sins stocks to buy in 2026. Aurora Cannabis Inc. (NASDAQ:ACB) has recently been making significant market growth in Europe and Australia, with the company stating on December 2 that its subsidiary, MedReleaf Australia, has signed a distribution agreement with Leafio, Montu Australia’s wholesale arm.
The partnership intends to give medical professionals training materials while expanding patient access to medical cannabis products throughout Australia. Leafio agreed to market Aurora’s medical cannabis portfolio, which includes brands like MedReleaf, CraftPlant, Aurora, Whistler Cannabis Co., and IndiMed.
In addition, over a week later, on December 11, Aurora Cannabis Inc. (NASDAQ:ACB) launched Black Jelly, a patented cannabis cultivar, on the Polish medicinal market. The new high-potency product, which contains 27% THC and less than 1% CBD, is made in Aurora’s Canadian GACP and EU-GMP-certified facilities and joins Farm Gas and Sourdough in the Cannabis flos Aurora range.
The company stated that Black Jelly is immediately available to Polish prescribers and highlighted its genetics program, hang-drying and curing methods, and more than a decade of experience in the global medical market.
Aurora Cannabis Inc. (NASDAQ:ACB) is a company that produces, distributes, and sells cannabis and cannabis-derived products in Canada and on the international stage. The company has a dual focus, serving both the medical and consumer segments of the cannabis market.
7. Tilray Brands, Inc. (NASDAQ:TLRY)
Number of Hedge Fund Holders: 13
Tilray Brands, Inc. (NASDAQ:TLRY) ranks among the best sins stocks to buy in 2026. On December 4, TD Cowen reaffirmed its Buy rating on Tilray Brands, Inc. (NASDAQ:TLRY) but reduced its price target to $10 from $25 for the cannabis and beverage company . According to TD Cowen analyst Robert Moskow, the adjustment takes into consideration Tilray’s reverse 10-for-1 stock split, which went into effect on December 1.
By implementing a reverse 10-for-1 stock split of its common shares, Tilray Brands, Inc. (NASDAQ:TLRY) was able to reduce its float to about 116 million, comply with Nasdaq’s minimum bid-price regulations, and save some administrative expenses. With a selective 2025 holiday selection, Tilray Brands, Inc. (NASDAQ:TLRY) is simultaneously pushing aggressively into beverages and hemp-derived THC drinks, indicating its efforts to expand outside core cannabis in the face of changing customer preferences and regulations.
In its updated valuation, TD Cowen assigned a 12x EV/EBITDA multiple to its projected EBITDA of $80 million for the next 12 months.
Additionally, the firm cited “competitive pressures in Canadian cannabis” as a factor in its more cautious assessment of Tilray Brands’ commercial prospects.
Tilray Brands, Inc. (NASDAQ:TLRY) is an American pharmaceutical, cannabis-lifestyle and consumer packaged goods company, incorporated in the United States, headquartered in New York City.
6. Brown-Forman Corporation (NYSE:BF-B)
Number of Hedge Fund Holders: 35
Brown-Forman Corporation (NYSE:BF-B) ranks among the best sins stocks to buy in 2026. On December 5, RBC Capital maintained a neutral view on Brown-Forman Corporation (NYSE:BF-B), reiterating its Sector Perform rating and $30 price target.
Although the firm admitted that Brown Forman’s Blackberry product line was performing better, it stated that these improvements were not enough to affect its overall investment thesis.
Brown Forman’s most recent quarter was deemed “mixed” by RBC Capital, which said that although the company made headway in some areas as compared to the months prior, underlying weakness in the U.S. and other developed countries continues to pose difficulties.
Brown Forman’s recent financial results, released on December 4, highlighted the continued constraints on the global spirits industry. The company reported that net sales for the quarter fell 5% to $1.0 billion. This reduction was mostly due to distributor inventory adjustments and lower consumer demand in the key U.S. market, in addition to trends in other developed countries. On the bottom line, diluted earnings per share plummeted 14% to $0.47, slightly lower than analyst consensus.
That said, RBC welcomed Brown Forman’s decision to reaffirm its forecast ranges, citing stronger-than-expected first-half sales offset by ongoing soft consumer takeout patterns in an uncertain market.
Brown-Forman Corporation (NYSE:BF-B) manufactures, imports, exports, and markets a variety of alcoholic beverages. The company’s product line includes beverages like whiskies, tequila, vodka, ready-to-drink cocktails, and wine.
5. Constellation Brands, Inc. (NYSE:STZ)
Number of Hedge Fund Holders: 50
Constellation Brands, Inc. (NYSE:STZ) ranks among the best sins stocks to buy in 2026. On November 21, Piper Sandler cut its price target for Constellation Brands, Inc. (NYSE:STZ) to $135 from $155 while keeping a Neutral rating for the alcohol company. The firm cited increasing strain from GLP-1 weight loss pharmaceuticals as a major reason for the downgrading, stating that recent price cuts for these prescriptions have likely encouraged consumer uptake. According to Piper Sandler, this tendency might produce an extra 30-70 basis point annual headwind for US alcohol sales, compounding beer’s existing negative 4.7% category trend.
The firm also cited higher alcohol by volume beverages as another hurdle, which might result in a percentage point or higher of volume strain, with additional category innovation predicted in this market.
As a consequence, Piper Sandler reduced its estimate of beer volume growth by around 1.0 percentage points for Constellation’s fiscal fourth quarter of 2026, and by roughly 1.5 percentage points every quarter starting with the fiscal first quarter of 2027.
Constellation Brands, Inc. (NYSE:STZ) indicated in September that it will reduce its full fiscal year guidance owing to a “challenging macroeconomic environment,” cutting its comparable earnings per share expectation to $11.30 to $11.60, down from $12.60 to $12.90. The company also stated that it expects organic net sales to shrink 4% to 6% in fiscal 2026, down from a previous estimate of 1% growth to 2% drop.
Constellation Brands, Inc. (NYSE:STZ) produces beer, wine, and spirits, operating famous brands such as Corona, Modelo, Robert Mondavi Winery, and Kim Crawford, among others.
4. Wynn Resorts, Limited (NASDAQ:WYNN)
Number of Hedge Fund Holders: 51
Wynn Resorts, Limited (NASDAQ:WYNN) ranks among the best sins stocks to buy in 2026. JPMorgan maintained its Overweight rating and increased its price target for Wynn Resorts, Limited (NASDAQ:WYNN) from $138 to $145 on December 8. The change comes after JPMorgan’s tour of the United Arab Emirates and the planned opening of the Wynn Al Marjan Island (WAMI) resort in the first quarter of 2027.
JPMorgan compared the UAE to Singapore in terms of its capacity to draw ultra-high-net-worth individuals from around the world, highlighting the growing confidence about both the property and the UAE’s prospects as an emerging gaming destination.
Meanwhile, Macquarie states that Wynn Resorts’ newly disclosed financials for the Wynn Al Marjan Island development may be conservative, indicating that gross gaming revenues might potentially surpass $2 billion annually.
Additionally, the firm projects that non-gaming revenue from major retail, high ADRs, and other non-gaming features would “comfortably” reach between $200 million and $400 million yearly. The firm also expects that the company’s EBITDA to remain consistent in 2029 and beyond, potentially due to Ras Al Khaimah’s demand surpassing hotel room supply. Nonetheless, Macquarie remains optimistic about the development, which it estimates could boost WYNN’s share price by $25 to $50.
Wynn Resorts, Limited (NASDAQ:WYNN) is a luxury hotel and casino operator known for providing premium resort experiences and running high-end properties in Boston, Macau, and Las Vegas.
3. DraftKings Inc. (NASDAQ:DKNG)
Number of Hedge Fund Holders: 68
DraftKings Inc. (NASDAQ:DKNG) ranks among the best sins stocks to buy in 2026. Citing DraftKings Inc. (NASDAQ:DKNG)’s recent performance in the New York market, Benchmark reaffirmed its Buy rating and $37 price target on the company’s shares on December 1. Through Week 12 of this season, New York’s sports betting industry has shown strong year-over-year growth, with handle up 12.7% and revenue up 16.2% when compared to the same period last year.
Despite a somewhat weaker hold rate of 8.3% compared to the state average of 9.3%, DraftKings Inc. (NASDAQ:DKNG) has crossed the market when it comes of volume, with its handle up 15.6% year-over-year and revenue up 13.1%. According to Benchmark, the sports betting market in New York thrives on account of a balanced model where FanDuel supports margin expansion and DraftKings Inc. (NASDAQ:DKNG) promotes handle growth, resulting in an overall positive trend for the state’s betting outcomes.
Furthermore, DraftKings Inc. (NASDAQ:DKNG) is getting ready to extend its sports betting business to Missouri, where it planned to open a mobile sportsbook on December 1. The Missouri Gaming Commission has granted the company a temporary mobile sports wagering license, enabling it to function on its own. This license represents significant expansion for DraftKings Inc. (NASDAQ:DKNG), as Missouri becomes the 29th state where it provides regulated sports betting.
DraftKings Inc. (NASDAQ:DKNG) is a digital sports entertainment and gaming company that offers sports betting, digital lottery courier, daily fantasy sports, and other products. Additionally, it offers online casino games, including roulette, slot machines, blackjack, and baccarat.
2. Caesars Entertainment Inc. (NASDAQ:CZR)
Number of Hedge Fund Holders: 71
Caesars Entertainment Inc. (NASDAQ:CZR) ranks among the best sins stocks to buy in 2026. On December 8, Citizens analyst Jordan Bender reiterated a Market Outperform rating and $37 price target on Caesars Entertainment Inc. (NASDAQ:CZR), citing evidence indicating that betting exchanges represent minimal competitive risk to traditional establishments.
The firm analyzed moneyline and over/under odds during the NFL Week 14 games, collecting 26 data points from companies like FanDuel, DraftKings, and betting platform Kalshi. The data, collected on December 5, revealed that Kalshi’s pre-game odds were 14% lower than DraftKings and 15% lower than FanDuel when transaction fees were taken into account. Although Kalshi’s average over/under pricing improved week-over-week, game results declined, leading to a worse total pricing discount than established sportsbooks.
This follows Citizens’ previous coverage of the company on December 1, where the firm maintained a positive stance on Caesars Entertainment Inc. (NASDAQ:CZR) despite talks regarding the possible impact of betting platforms on traditional gambling operators. Even before the Kalshi data was disclosed, citizens expressed confidence that such platforms would not represent a competitive threat to the financial health of existing players in legal sports betting states.
Caesars Entertainment Inc. (NASDAQ:CZR) operates as a gaming and hospitality company. The company owns, leases, brands, or manages domestic properties in 18 states with slot machines, video lottery terminals, and e-tables, and hotel rooms, as well as table games, including poker.
1. Flutter Entertainment plc (NYSE:FLUT)
Number of Hedge Fund Holders: 95
Flutter Entertainment plc (NYSE:FLUT) ranks among the best sins stocks to buy in 2026. Benchmark reaffirmed its Buy rating on Flutter Entertainment plc (NYSE:FLUT) but reduced its price target to $285 from $310 on December 1. Benchmark believes that Flutter’s medium-term profitability will be significantly impacted by the substantial gaming tax increases announced in the UK Budget, which are scheduled to start next year.
According to the latest budget, online gaming tax will rise from 21% to 40% by 2026, a 90% increase. Meanwhile, sports betting duty would jump from 15% to 25% the next year, representing a nearly 67% increase. Following an extensive lobbying campaign by the racing industry, the horserace betting fee will continue at 15%, both online and in stores. The UK Treasury anticipates the package to generate an additional £1.1 billion per year in revenue by 2029.
In order to contend with these tax increases, Flutter’s management has proposed a two-phase strategy for mitigation that combines short-term cost-cutting initiatives with longer-term advantages expected from scale, operational savings, and possible market-share gains.
Benchmark points out that despite these attempts at mitigation, the combined effects of the tax rises on sports betting and iGaming constitute a substantial structural change for the UK market.
Flutter Entertainment plc (NYSE:FLUT) operates as a sports betting and gaming company. It offers sportsbooks, iGaming products such as blackjack, roulette, slot machines, poker, and rummy, as well as lottery products, and sports betting products.
While we acknowledge the potential of FLUT 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 FLUT and that has 100x upside potential, check out our report about this cheapest AI stock.
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