Sectors & IndustriesConsumer DefensiveTobacco

Best Tobacco Stocks to Buy Now (2025)

Top tobacco stocks in 2025 ranked by overall Zen Rating. "A" Rated stocks have returned an average of +32.52% per year, and are the best tobacco stocks to buy now. Learn More.

According to Zen Ratings, our proprietary rating system that evaluates 115 factors proven to drive growth in stocks and assigns each stock in our system an overall letter grade as well as 7 individual Component Grades for Value, Growth, Momentum, Sentiment, Safety, Financials, and proprietary AI algorithms, the 3 best tobacco stocks to buy right now are:

Universal (NYSE:UVV) is the #1 top tobacco stock out of 10 with a Zen Rating of B. Stocks with a rating of B have had an average return of +19.88% per year. Learn more.

The Component Grade breakdown for Universal (NYSE:UVV) is: Value: B, Growth: C, Momentum: B, Sentiment: C, Safety: C, Financials: C, and AI: C.

Universal (NYSE:UVV) has a Due Diligence Score of 42, which is 7 points higher than the tobacco industry average of 35.

UVV passed 14 out of 38 due diligence checks and has strong fundamentals. Universal has seen its stock return 12.87% over the past year, overperforming other tobacco stocks by 33 percentage points.

British American Tobacco (NYSE:BTI) is the #2 top tobacco stock out of 10 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for British American Tobacco (NYSE:BTI) is: Value: C, Growth: C, Momentum: A, Sentiment: C, Safety: B, Financials: C, and AI: C.

British American Tobacco (NYSE:BTI) has a Due Diligence Score of 41, which is 6 points higher than the tobacco industry average of 35.

BTI passed 15 out of 38 due diligence checks and has strong fundamentals. British American Tobacco has seen its stock return 45.14% over the past year, overperforming other tobacco stocks by 65 percentage points.

Philip Morris International (NYSE:PM) is the #3 top tobacco stock out of 10 with a Zen Rating of C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

The Component Grade breakdown for Philip Morris International (NYSE:PM) is: Value: C, Growth: C, Momentum: A, Sentiment: C, Safety: B, Financials: B, and AI: C.

Philip Morris International (NYSE:PM) has a Due Diligence Score of 33, which is -2 points lower than the tobacco industry average of 35.

PM passed 12 out of 38 due diligence checks and has average fundamentals. Philip Morris International has seen its stock return 78.1% over the past year, overperforming other tobacco stocks by 98 percentage points.

Philip Morris International has an average 1 year price target of $175.50, an upside of 3.08% from Philip Morris International's current stock price of $170.26.

Philip Morris International stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 6 analysts covering Philip Morris International, 83.33% have issued a Strong Buy rating, 0% have issued a Buy, 16.67% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 5 tobacco stocks that have issued dividends in the past year, the 3 tobacco stocks with the highest dividend yields are:

British American Tobacco (NYSE:BTI) has an annual dividend yield of 6.94%, which is 3 percentage points higher than the tobacco industry average of 4.3%. British American Tobacco's dividend payout is not stable, having dropped more than 10% three times in the last 10 years. British American Tobacco's dividend has not shown consistent growth over the last 10 years.

British American Tobacco's dividend payout ratio of 171.6% indicates that its high dividend yield might not be sustainable for the long-term.

Altria Group (NYSE:MO) has an annual dividend yield of 6.87%, which is 3 percentage points higher than the tobacco industry average of 4.3%. Altria Group's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Altria Group's dividend has shown consistent growth over the last 10 years.

Altria Group's dividend payout ratio of 67.7% indicates that its high dividend yield is sustainable for the long-term.

Universal (NYSE:UVV) has an annual dividend yield of 4.17%, which is the same as the tobacco industry average of 4.3%. Universal's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Universal's dividend has shown consistent growth over the last 10 years.

Universal's dividend payout ratio of 48% indicates that its high dividend yield is sustainable for the long-term.

Tobacco stocks were up 1.03% in the last day, and up 3.3% over the last week.

We couldn't find a catalyst for why tobacco stocks are up.

Based on the Valuation rating, one of the 7 components of a stocks overall Zen Ratings grade, which evaluates factors including estimated earnings yield, earnings before interest and taxes/enterprise value, cash flow yield, free cash flow to price, and price-to-earnings growth (PEG ratio), the 3 most undervalued tobacco stocks right now are:

Universal (NYSE:UVV) is the most undervalued tobacco stock based on its Valuation Rating of B. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Universal has a valuation score of 43, which is 14 points higher than the tobacco industry average of 29. It passed 3 out of 7 valuation due diligence checks.

Universal's stock has gained 12.87% in the past year. It has overperformed other stocks in the tobacco industry by 33 percentage points.

Altria Group (NYSE:MO) is the second most undervalued tobacco stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Altria Group has a valuation score of 29, which is 0 points higher than the tobacco industry average of 29. It passed 2 out of 7 valuation due diligence checks.

Altria Group's stock has gained 34.12% in the past year. It has overperformed other stocks in the tobacco industry by 54 percentage points.

Turning Point Brands (NYSE:TPB) is the third most undervalued tobacco stock based on its Valuation Rating of C. Valuation is one of 7 Component Grades used to calculate the overall Zen Rating.

Turning Point Brands has a valuation score of 57, which is 28 points higher than the tobacco industry average of 29. It passed 4 out of 7 valuation due diligence checks.

Turning Point Brands's stock has gained 113.55% in the past year. It has overperformed other stocks in the tobacco industry by 133 percentage points.

60% of tobacco stocks rated by analysts are a strong buy right now. On average, analysts expect tobacco stocks to rise by 5.55% over the next year.

0% of tobacco stocks have a Zen Rating of A (Strong Buy), 12.5% of tobacco stocks are rated B (Buy), 62.5% are rated C (Hold), 12.5% are rated D (Sell), and 12.5% are rated F (Strong Sell).