BTAFF - British American Tobacco: Slow And Steady Progress Likely
2024-06-10 00:16:08 ET
Summary
- British American Tobacco might have underperformed both the consumer staples sector and its peers in recent months, but that's just one way to look at the stock.
- It has posted positive price returns YTD, after a decline last year. The stock's forward P/E is competitive and forward dividend yield at 9.6% is robust too.
- The company's latest trading update points to encouraging gains in market share by vaping brand Vuse and nicotine pouches brand, Velo.
- While illicit Chinese vapes in the US markets and sales bans are challenges for transitioning to smoke-free products at speed, overall, there's more to like about BAT than not.
British American Tobacco ( NYSE:BTI ) ( OTCPK:BTAFF ) or BAT for short, hasn’t seen much movement since I last wrote about it in February. It’s up by less than 2%, which doesn't compare well with the 7.1% rise in the S&P 500 Consumer Staples Index during the same time. It has hardly just underperformed the index, though. A year-to-date [YTD] comparison reveals that it has lagged behind its peers as well (see chart below)....
British American Tobacco: Slow And Steady Progress Likely