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 C. Stocks with a rating of C have had an average return of +7.53% per year. Learn more.

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

Universal (NYSE:UVV) has a Due Diligence Score of 28, which is -5 points lower than the tobacco industry average of 33.

UVV passed 11 out of 38 due diligence checks and has average fundamentals. Universal has seen its stock return 2.62% over the past year, overperforming other tobacco stocks by 24 percentage points.

Philip Morris International (NYSE:PM) 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 Philip Morris International (NYSE:PM) is: Value: C, Growth: C, Momentum: A, Sentiment: B, Safety: A, 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 79.31% over the past year, overperforming other tobacco stocks by 101 percentage points.

Philip Morris International has an average 1 year price target of $157.17, a downside of -2.06% from Philip Morris International's current stock price of $160.48.

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, 0% have issued a hold, while 0% have issued a Sell rating, and 16.67% have issued a Strong Sell.

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

Turning Point Brands (NYSE:TPB) has a Due Diligence Score of 52, which is 19 points higher than the tobacco industry average of 33.

TPB passed 19 out of 38 due diligence checks and has strong fundamentals. Turning Point Brands has seen its stock return 110.7% over the past year, overperforming other tobacco stocks by 132 percentage points.

Turning Point Brands has an average 1 year price target of $68.75, an upside of 20% from Turning Point Brands's current stock price of $57.29.

Turning Point Brands stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 4 analysts covering Turning Point Brands, 50% have issued a Strong Buy rating, 50% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 4 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 7.11%, which is 3 percentage points higher than the tobacco industry average of 4.21%. 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 7.05%, which is 3 percentage points higher than the tobacco industry average of 4.21%. 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 61.2% indicates that its high dividend yield is sustainable for the long-term.

Philip Morris International (NYSE:PM) has an annual dividend yield of 3.33%, which is -1 percentage points lower than the tobacco industry average of 4.21%. Philip Morris International's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Philip Morris International's dividend has shown consistent growth over the last 10 years.

Philip Morris International's dividend payout ratio of 117% indicates that its dividend yield might not be sustainable for the long-term.

Tobacco stocks were down -0.24% in the last day, and up 1.87% over the last week. Greenlane Holdings was the among the top losers in the tobacco industry, dropping -13.31% yesterday.

Shares of companies within the broader consumer discretionary sector are trading lower amid overall market weakness after Fed Chair Powell made remarks at the Economic Club. Stocks across sectors may also be weighed down on trade tension fears after after the United States informed NVIDIA that it may require a license to export chips to China.

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:

Altria Group (NYSE:MO) 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.

Altria Group has a valuation score of 29, which is -1 points higher than the tobacco industry average of 30. It passed 2 out of 7 valuation due diligence checks. Although this number is below the industry average, our proven quant model rates MO a Valuation Rating of "B".

Altria Group's stock has gained 40.54% in the past year. It has overperformed other stocks in the tobacco industry by 62 percentage points.

Universal (NYSE:UVV) 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.

Universal has a valuation score of 43, which is 13 points higher than the tobacco industry average of 30. It passed 3 out of 7 valuation due diligence checks.

Universal's stock has gained 2.62% in the past year. It has overperformed other stocks in the tobacco industry by 24 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 27 points higher than the tobacco industry average of 30. It passed 4 out of 7 valuation due diligence checks.

Turning Point Brands's stock has gained 110.7% in the past year. It has overperformed other stocks in the tobacco industry by 132 percentage points.

60% of tobacco stocks rated by analysts are a strong buy right now. On average, analysts expect tobacco stocks to rise by 4.54% over the next year.

0% of tobacco stocks have a Zen Rating of A (Strong Buy), 0% of tobacco stocks are rated B (Buy), 75% are rated C (Hold), 12.5% are rated D (Sell), and 12.5% are rated F (Strong Sell).