Investors are underrating the durability of these high-yielding stocks. The artificial intelligence (AI) narrative has put the stock market into overdrive. Nvidia is now one of the largest companies in the world by market cap. The S&P 500 is close to a price-to-earnings ratio (P/E) of 30, which has only happened before in the late '90s internet bubble and the 2021 COVID-19 pandemic bubble. Despite this, there are many companies trading at reasonable or cheap prices that investors have seemingly forgotten ab ...

peepo/E+ via Getty Images We last covered British American Tobacco p.l.c. (NYSE:NYSE:BTI) in May, calling it a 'hybrid value' opportunity. Since then, the stock has outperformed the S&P 500, prompting me to update our thesis, especially as fundamental changes have emerged in the tobacco industry. British American Tobacco: A 'Hybrid Value' Opportunity STRONG BUY May 02, 2024 • 40 Comments Pearl Gray's Previous Rating (Seeking Alpha) Will British American Tobacco's stock sustain its performance, or is it set ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Let's take a look at what these Wall Street heavyweights have to say about British American Tobacco (BTI) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. British American Tobacco currently has an aver ...

Tuul & Bruno Morandi Co-authored with Hidden Opportunities. The laws of physics are difficult to escape in our everyday lives. According to Newton's third law of motion, for every action, there is an equal and opposite reaction. As a baseball catcher positioned behind the batter, if you extend your hand to catch a ball traveling at +95 mph (ca. 153 km/h), the ball comes to an immediate stop, transferring its momentum and force into your hand. Without a mitt, you would definitely feel the impact and strain o ...

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, inc ...

From a long-term perspective, prolonged and stable returns often lead to dividend stocks. These types of stocks provide constant income and mark strong business fundamentals. They are distinguished by their ability to deliver regular dividend payments while investing in their long-term growth. Moreover, identifying these dividend stocks requires observing the company's financial performance, strategic investments and operational efficiencies. Companies excelling in these areas tend to have robust revenue st ...

Investors might want to bet on British American Tobacco (BTI) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. The ...

For those looking to find strong Consumer Staples stocks, it is prudent to search for companies in the group that are outperforming their peers. Is British American Tobacco (BTI) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question. British American Tobacco is one of 184 companies in the Consumer Staples group. The Consumer Staples group currently sits at #12 within the Zacks Sector Rank. ...

Warren Buffett is not a fan of portfolio diversification. He once indicated it meant that someone didn't know what they were doing. "Diversification is a protection against ignorance," he wrote to shareholders. Of course, Buffett's Berkshire Hathaway (NYSE:BRK-A, BRK-B) owns dozens of companies, though that's more a result of its size than breaking Buffett's rule. He would like to own fewer companies but deploying hundreds of billions of dollars requires buying more stocks. Still, for the average investor l ...

Consumer stocks are in an interesting position. Numerous consumer discretionary stocks have been oversold amid growing economic uncertainty, while consumer defensive stocks are defensive plays that can protect against a volatile economy. Considering the above, I undertook a rigorous screening process to identify three prudent consumer stocks. Methodologically, I looked for a mix of undervalued and low-beta assets, allowing investors to select from a basket of differentiated stocks. Although I screened for d ...