Home News Top Tobacco Stocks for Q4 2022

Top Tobacco Stocks for Q4 2022

by SuperiorInvest

The tobacco industry includes companies that grow, manufacture and sell tobacco and related products such as cigarettes and e-cigarettes. Sometimes he called sinful stockstobacco companies are being shunned by some investors, including those focused on socially responsible investing. The largest tobacco companies include Philip Morris International Inc. and Altria Group Inc., both of which sell products with dominant brands.

In 2021, more than $1 billion worth of tobacco was produced in the US. At the beginning of the year, the US Food and Drug Administration (FDA) proposed banning both flavored cigars and menthol cigarettes. A ban could reduce the number of tobacco-related deaths each year, which currently stands at more than 480,000.

Tobacco stocks as a group outperformed the broader market. The benchmark MSCI ACWI Tobacco Index posted a 1-year trailing total return of -1.5% compared to a Russell 1000 total return of -13.1%. This market performance data and all statistics in the tables below are as of September 15, 2022.

Here are the top 3 tobacco stocks with the best value, fastest growth and most momentum.

These are tobacco stocks at their lowest in the last 12 months price to earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio indicates that you are paying less for each dollar of profit generated.

Best value tobacco stocks
Price ($) Market Cap ($B) 12-month trailing P/E ratio
RLX Technology Inc. (RLX) 1.22 1.9 3.6
Imperial Brands PLC (IMBBY) 22.27 21.2 7.7
Vector Group Ltd. (VGR) 9.18 1.4 8.6

Source: YCharts

  • RLX Technology Inc.: RLX Technology is a Chinese company focused on e-vapor products and services. The company is engaged in scientific research, technology and product development, distribution and related services. In late July, the company announced that one of its subsidiaries had received a Manufacturing Enterprise License from the Chinese government to manufacture RELX brand e-vapor devices and related products. The approved production capacity is for more than 15 million rechargeable devices and nearly 329 million cartridge products annually by July 31, 2023.
  • Imperial Brands PLC: Imperial Brands is a British consumer goods company. Sells cigarettes, smokeless tobacco, papers and related products. Its products are available worldwide.
  • Vector Group Ltd.: Vector Group is a holding company that manufactures and sells cigarette products through its subsidiaries. The company is also engaged in real estate projects through one of its subsidiaries. On August 4, Vector reported Q2 2022 financial results, including a significant year-over-year (YOY) decline in net income, even as revenue grew. The net profit was influenced by the investment in the company’s Montego brand.

These are the best tobacco stocks by rating and grow a model that ranks companies based on 50/50 weights of their most recent quarterly year-over-year percentage revenues growth and their latest quarterly year-on-year earnings per share (EPS) grow. Both sales and profit are decisive factors for the company’s success. Therefore, ranking companies by only one growth metric makes the ranking susceptible to quarter-to-quarter accounting anomalies (such as changes in tax laws or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with EPS or revenue growth above 2,500% were excluded as outliers.

The fastest growing tobacco stocks
Price ($) Market Cap ($B) EPS growth (%) Income growth (%)
Universal Corp. (UVV) 49.23 1.2 3.9 22.8
Philip Morris International Inc. (AFTERNOON) 94.04 145.8 2.9 3.1
Vector Group Ltd. (VGR) 9.18 1.4 -58.3 14.7

Source: YCharts

  • Universal Corp.: Universal operates a tobacco store and an ingredient store. Its tobacco operations include the processing and shipment of leaf tobacco to manufacturers of tobacco products. His ingredient store offers a variety of herbal ingredients. On August 3, Universal announced a quarterly dividend of $0.79 per common share. The dividend is payable on 7 November to shareholders as of 10 October 2022.
  • Philip Morris International Inc.: Philip Morris International is a global tobacco company. It offers cigarettes as well as smokeless tobacco products, including heatless, vapor and oral nicotine products.
  • Vector Group Ltd.: See above for company description.

These are the tobacco stocks that have had the highest total return over the past 12 months.

Tobacco stocks with the greatest dynamics
Price ($) Market Cap ($B) 12 month total return (%)
British American Tobacco PLC (ZISZ) 39.36 88.5 13.7
Imperial Brands PLC (IMBBY) 22.27 21.2 10.0
Universal Corp. (UVV) 49.23 1.2 6.6
Russell 1000 ON ON -13.1
MSCI ACWI Tobacco Index ON ON -1.5

Source: YCharts

  • British American Tobacco PLC: British American Tobacco is a British consumer goods company that offers tobacco and nicotine products. In addition to the traditional tobacco business, the company also offers vapor products, tobacco heating products and modern oral products. On September 6, the company announced that a year-long study showed a lower risk for users of the company’s glo product compared to people who continued to smoke. American Tobacco’s glo is a tobacco heating product (THP). It uses a device to heat, rather than burn, tobacco, often using an electronic device.
  • Imperial Brands PLC: See above for company description.
  • Universal Corp.: See above for company description.

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