Friday, January 25, 2013

7 Smoking-Hot Tobacco Stocks to Buy

Tobacco stocks are in favor right now because they are recession-proof businesses with reliable revenue streams. In a high-stress environment with a poor job picture and rampant home foreclosures, simple pleasures like a burger, cigarette or a beer are more important than ever — even if they aren�t the healthiest choices in the world. What�s more, the addictive nature of cigarettes means it�s impossible for sales to just evaporate overnight. That kind of stability is very important in a volatile stock market.

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 got seven smoking hot tobacco stocks.

Here they are, in alphabetical order. Each one of these stocks gets an �A� or �B� according to my research, meaning it is a �strong buy� or �buy.�

Altria Group Inc. (NYSE:MO) manufactures and sells cigarettes and other smokeless tobacco products in the U.S. Like other tobacco stocks, MO has gained 18% since the start of 2011.

British American Tobacco (NYSE:BTI) is best known for its product lines of Dunhill, Kent, Lucky Strike and Pall Mall. Year-to-date, BTI stock has gained nearly 21%.

Lorillard Inc. (NYSE:LO) is best known for its Newport line of menthol cigarettes. Like many of its major competitors, LO stock has gained 36% since the beginning of 2011.

Philip Morris International Inc. (NYSE:PM) is one of the largest tobacco companies in the world, selling its products in more than 180 countries. PMI stock has surged 31% since the start of 2011.

Reynolds American Inc. (NYSE:RAI) owns and operates R.J. Reynolds Tobacco Company. RAI stock is up more than 29% year-to-date.

Universal Corp. (NYSE:UVV) is an international leaf tobacco merchant and processor based in Virginia. UVV stock rounds has made a 16% gain year-to-date.

Vector Group (NYSE:VGR) owns the subsidiaries Liggett Group LLC and Vector Tobacco Inc. Rounding out the list, a gain of 10% for VGR stock year-to-date has shareholders pleased with their initial purchase.

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.

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