Today, a wide range of vape stocks are seeing buying pressure. Altria (NYSE:MO), British American Tobacco (NYSE:BTI) and Turning Point Brands (NYSE:TPB) were all up approximately 2% at the time of writing. For cigarette and vape stocks such as these, this is a rather large move.
This price action is certainly welcome for those invested in these high-profile stocks. Given the recent regulatory pressure placed on tobacco companies in recent months from the Biden Administration, any sort of positive news is likely to be viewed as positive.
Such is the case today with these vape stocks.
Let’s dive into what’s taking this peer group higher today.
Vape Stocks Surge on E-Cigarette Authorization from FDA
Today, news broke that British American Tobacco had been cleared by regulators to sell and market its e-cigarettes to consumers. The Food and Drug Administration (FDA) gave the go-ahead to the company’s Vuse branded tobacco-flavored pods. While other flavored e-cigarettes were denied marketing authorization, investors point to this landmark decision as a step in the right direction for the e-cigarette space in the U.S.
Other companies such as Altria, which owns Juul, and other peers rallied alongside BTI stock today.
This decision paves the way for others in the e-cigarette and vape space to grow their businesses domestically. A product line that has thus far been limited mainly to international markets, this announcement provides the potential for impressive growth for these tobacco stocks.
Among the reasons for the positive ruling today was data that showed, “Vuse reduced exposure to harmful chemicals released by cigarettes.”
Indeed, investors bullish on the transition away from traditional cigarettes have cheered the news. Accordingly, these are stocks that appear to have strong support in the market right now.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.