- They offer limited growth prospects, especially as tobacco customers die off (as smokers tend to suffer greater death rates actuarially than nonsmokers).
- These stocks represent investments in what some refer to as a "sin" sector, eschewed by "socially responsible" portfolio managers.
- These stocks' companies stand in the crosshairs of some former-customers-turned-angry-plaintiffs as well as tax-hungry legislators.
- Anti-smoking forces have been taking aim at retail distribution of cigarettes as well as venues for smoking and advertisements that they claim are targeting youth to replace the base of mature smokers.
|Two Tobacco Stocks: Risk vs. Reward |
|Vector Group||Reynolds American|
|Market Cap ($Billion)||1.06||13.62|
|EPS (Current Year)||1.00||4.60|
|EPS (Next Year)||1.03||4.86|
|P/E (Current Year)||17.0||10.5|
|P/E (Next Year)||16.6||9.9|
|Dividend Yield (%)||9.4||7.4|
|Source: TheStreet.com Ratings and company reports. For more information, check out an explanation of our ratings.|