I was recently asked to pick a stock that is under the radar that could do well in 2025. I chose British American Tobacco, which is listed in the UK (BATS:LSE) and the US (BTI:NYSE)
British American Tobacco (BTI)
For a more defensive and income-oriented stock pick, consider British American Tobacco, according to Vince Stanzione, an experienced stock trader and author of “The Millionaire Dropout.”
“While cigarette smoking is in decline, make no mistake tobacco is still a thriving business,” Stanzione said. “BTI’s brands include Kent, Dunhill, Lucky Strike, Pall Mall and Vuse, the world’s largest vaping brand. In 2017, they took over Reynolds and added a handful of popular brands like Newport and Camel to its lineup.”
In addition to its extensive brands, the company is generating cash and, according to Stanzione, has good things on the horizon. “The company remains a strong cash generator and currently offers a yield of over 8% a year. It has a price-to-earnings ratio under 7.0, which reflects the fact that it’s out of favor and seen as low growth,” he said. “I disagree, as there is still growth in many emerging markets and the transition to smoke-free products like Vuse will make up the majority of the earnings.”
As of early November, the stock has seen healthy growth this year and is paying a high dividend, Stanzione explained. And that’s not all. “The company is also buying back its own stock and plans to buy back a further $1.15 billion in 2025. It makes a good defensive stock if markets fall in 2025,” he said.
The full article is here (note, I am only endorsing my pick) https://www.msn.com/en-my/money/savingandinvesting/5-sleeper-stocks-you-might-not-know-about-but-could-pay-big-in-2025/ar-AA1tTunS