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5 Smoking Tobacco Stocks to Buy Now

Stable operations and solid earnings drive these buys

   

Tobacco isn’t exactly an attractive habit. But for investors, it’s an attractive industry because the companies here have stable operations due to highly regulated operations –and limited competition. As a bonus, they also throw off nice dividend yields.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. This week, I’ve identified five top tobacco stocks to buy.

Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.” Here they are:

Philip Morris International (NYSE:PM) sells its tobacco products in approximately 180 countries. In the last year, Philip Morris stock has posted a gain of 34%, compared to a gain of just 9% for the Dow Jones. PM stock gets a “B” grade for the magnitude in which earnings projections have increased over the past months, and an “A” grade for return on equity. For more information, view my complete analysis of PM stock.

Lorillard (NYSE:LO) is known for its Newport brand of Menthol cigarettes. LO stock is up 65% in the last 12 months. Lorillard stock gets a “B” grade for earnings growth, a “B” grade for earnings momentum, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, and a “B” grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of LO stock.

British American Tobacco (AMEX:BTI) also sells its tobacco products in 180 countries. BTI has watched its stock value jump 31% in the last year. British American stock gets an “A” grade for return on equity. For more information, view my complete analysis of BTI stock.

Altria Group (NYSE:MO) owns the companies U.S. Smokeless Tobacco Company LLC (USSTC) and Ste. Michelle Wine Estates Ltd., among others. In the last year, Altria stock has climbed 20%, compared to smaller gains by the broader markets. MO stock gets a “B” grade for earnings momentum, a “B” grade for the magnitude in which earnings projections have increased over the past months, and an “A” grade for return on equity. For more information, view my complete analysis of MO stock.

Reynolds American (NYSE:RAI) finds its way onto the list with a gain of 24% since last March. Reynolds stock gets a “B” grade for the magnitude in which earnings projections have increased over the past month, and an “A” grade for return on equity. For more information, view my complete analysis of RAI stock.

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.


Article printed from InvestorPlace Media, http://investorplace.com/2012/03/5-smoking-tobacco-stocks-to-buy-pm-lo-bti-mo-rai-now/.

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