Jim Cramer featured the technical analysis of Suz Smith, portfolio manager with Strategic Portfolio Solutions and a Real Money contributor, during Mad Money's "Off the Charts" segment Tuesday. The pair examined the big four tobacco stocks.
Smith first looked at a daily chart of Vector Group (VGR) , which is involved in both tobacco and real estate with some e-cigarette exposure. She noted that the stock just broke out above its 50-day moving average and is forming a bullish flag formation, characterized by a sharp upwards move followed by sideways trading.
Smith offered up a price target of $25 a share and said this is a healthy stock to hold in a long-term dividend portfolio. Cramer was also bullish, calling Vector a solid buy with a 7% yield.
Smith then looked at the daily chart of Phillip Morris International (PM) , the world's leading cigarette maker with six of the top 15 global brands.
After a four-month consolidation, shares of Phillip Morris are also beginning what could be a flag formation, with both the relative strength indication and the MACD momentum indicate confirming the move. Smith felt any pullback to the stock's 20-day moving average would be a buying opportunity.
She added that stocks that get into the $90s generally draw towards the next big round number, which in this case is $100. Cramer said with so many foreigners continuing to take up smoking, Phillip Morris is also a buy with its 4.2% yield.