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.

Industry: Tobacco
B
Tobacco is Zen Rated B and is the 49th ranked industry out of 145 stock market industries
Learn how the Zen Ratings work
Ticker
Company
Market Cap
Price
Price Target
Upside/Downside
Top Analysts Upside/Downside
Consensus
Top Analysts Consensus
Analysts
Top Analysts
Fore. Revenue Growth
Fore. Earnings Growth
Forecast ROE
Forecast ROA
UVV
UNIVERSAL CORP
$1.40B$56.75N/AN/AN/AN/AN/AN/AN/AN/A
TPB
TURNING POINT BRANDS INC
$1.25B$69.97$76.679.57%Strong Buy315.93%27.73%32.45%11.48%
PM
PHILIP MORRIS INTERNATIONAL INC
$256.56B$164.83$180.509.51%Strong Buy67.54%23.89%-140.50%23.53%
BTI
BRITISH AMERICAN TOBACCO PLC
$96.14B$40.98N/AN/AN/AN/A1.75%68.13%20.33%8.20%
MO
ALTRIA GROUP INC
$95.93B$56.95$55.33-2.84%Hold6-4.97%-1.42%-278.07%27.29%
XXII
22ND CENTURY GROUP INC
$2.54M$1.07N/AN/AN/AN/A43.72%N/AN/AN/A
RLX
RLX TECHNOLOGY INC
$2.95B$1.88$2.5032.98%Hold1N/AN/AN/AN/A
ISPR
ISPIRE TECHNOLOGY INC
$168.01M$2.94$9.00206.12%Strong Buy19.33%N/A-57.98%-7.41%
KAVL
KAIVAL BRANDS INNOVATIONS GROUP INC
$7.04M$0.61N/AN/AN/AN/AN/AN/AN/AN/A
GNLN
GREENLANE HOLDINGS INC
$50.02k$0.01N/AN/AN/AN/AN/AN/AN/AN/A

Tobacco Stocks FAQ

What are the best tobacco stocks to buy right now in May 2025?

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:

1. Universal (NYSE:UVV)


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 9 points higher than the tobacco industry average of 33.

UVV passed 14 out of 38 due diligence checks and has strong fundamentals. Universal has seen its stock return 5.66% over the past year, overperforming other tobacco stocks by 25 percentage points.

2. Turning Point Brands (NYSE:TPB)


Turning Point Brands (NYSE:TPB) is the #2 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 Turning Point Brands (NYSE:TPB) is: Value: C, Growth: B, Momentum: B, Sentiment: C, Safety: D, Financials: A, and AI: C.

Turning Point Brands (NYSE:TPB) has a Due Diligence Score of 40, which is 7 points higher than the tobacco industry average of 33.

TPB passed 15 out of 38 due diligence checks and has average fundamentals. Turning Point Brands has seen its stock return 105.01% over the past year, overperforming other tobacco stocks by 124 percentage points.

Turning Point Brands has an average 1 year price target of $76.67, an upside of 9.57% from Turning Point Brands's current stock price of $69.97.

Turning Point Brands stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 3 analysts covering Turning Point Brands, 33.33% have issued a Strong Buy rating, 66.67% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

3. Philip Morris International (NYSE:PM)


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 equal to the tobacco industry average of 33.

PM passed 12 out of 38 due diligence checks and has average fundamentals. Philip Morris International has seen its stock return 66.01% over the past year, overperforming other tobacco stocks by 85 percentage points.

Philip Morris International has an average 1 year price target of $180.50, an upside of 9.51% from Philip Morris International's current stock price of $164.83.

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.

What are the tobacco stocks with highest dividends?

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

1. British American Tobacco (NYSE:BTI)


British American Tobacco (NYSE:BTI) has an annual dividend yield of 7.26%, which is 3 percentage points higher than the tobacco industry average of 4.44%. 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.

2. Altria Group (NYSE:MO)


Altria Group (NYSE:MO) has an annual dividend yield of 7.09%, which is 3 percentage points higher than the tobacco industry average of 4.44%. 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.

3. Universal (NYSE:UVV)


Universal (NYSE:UVV) has an annual dividend yield of 4.28%, which is the same as the tobacco industry average of 4.44%. 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.

Why are tobacco stocks down?

Tobacco stocks were down -3.33% in the last day, and down -2.79% over the last week.

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

What are the most undervalued tobacco stocks?

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:

1. Universal (NYSE:UVV)


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 20 points higher than the tobacco industry average of 23. It passed 3 out of 7 valuation due diligence checks.

Universal's stock has gained 5.66% in the past year. It has overperformed other stocks in the tobacco industry by 25 percentage points.

2. Altria Group (NYSE:MO)


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 6 points higher than the tobacco industry average of 23. It passed 2 out of 7 valuation due diligence checks.

Altria Group's stock has gained 26.44% in the past year. It has overperformed other stocks in the tobacco industry by 45 percentage points.

3. Rlx Technology (NYSE:RLX)


Rlx Technology (NYSE:RLX) 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.

Rlx Technology has a valuation score of 29, which is 6 points higher than the tobacco industry average of 23. It passed 2 out of 7 valuation due diligence checks.

Rlx Technology's stock has dropped -7.39% in the past year. It has overperformed other stocks in the tobacco industry by 12 percentage points.

Are tobacco stocks a good buy now?

60% of tobacco stocks rated by analysts are a strong buy right now. On average, analysts expect tobacco stocks to rise by 9.25% over the next year.

0% of tobacco stocks have a Zen Rating of A (Strong Buy), 25% of tobacco stocks are rated B (Buy), 62.5% are rated C (Hold), 0% are rated D (Sell), and 12.5% are rated F (Strong Sell).

What is the average p/e ratio of the tobacco industry?

The average P/E ratio of the tobacco industry is 26.45x.
WallStreetZen does not provide financial advice and does not issue recommendations or offers to buy stock or sell any security.

Information is provided 'as-is' and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that may occur as a result of reliance on this data.