One possible factor pushing down the sector could be Reynolds America Inc. (RAI) agreeing to buy its competitor Lorillard Inc. (LO) for $25 billion, merging two of the biggest cigarette makers in the world.
The acquisition is designed to combat a slowdown in sales, Reuters reports.
Must Read: Warren Buffett's 25 Favorite Stocks
Other cigarette stocks declining today include Philip Morris International Inc. (PM), down by -1.30% to $84.83, British American Tobacco PLC (BTI), lower by -1.39% to $121.21, and Imperial Tobacco Group PLC (ITYBY), down by -3.24% to $91.15, in late morning trading on Tuesday.
Separately, TheStreet Ratings team rates ALTRIA GROUP INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALTRIA GROUP INC (MO) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."