Tobacco stocks are on the move Monday on reports the U.S. Food and Drug Administration (FDA) intends to fast-track reviews for nicotine pouches, reports Reuters. Insider sources claim that the Trump administration has pressured the FDA to approve nicotine pouches quickly to get them on the market faster. This comes at a time when demand for nicotine pouches is on the rise as an alternative to traditional tobacco products and nicotine vapes.
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Philip Morris International (PM), Altria (MO), British American Tobacco (BTI), and Turning Point Brands (TPB) are among the tobacco companies with nicotine pouches in line for review at the FDA. Philip Morris International’s Zyn pouches are already on the market, but its updated Zyn Ultra pouches have yet to be cleared for sale by the FDA. These Zyn Ultra pouches would be included in the fast-track review program.
Tobacco Stocks Movement Today
Shares of tobacco companies’ stocks saw varied movement alongside today’s FDA news. Let’s get into that below:
- Philip Morris International stock was up 0.25% during pre-market trading.
- Altria stock slipped slightly before the opening bell.
- British American Tobacco increased over 1% in early morning trading.
- Turning Point Brands stock jumped just over 2% before markets opened.
While today’s movement comes from reports, an official announcement could act as an additional catalyst for these shares. Investors will want to keep an eye on the FDA to see what it has to say about nicotine pouches in the days to come.
Which Nicotine Pouch Maker Do Analysts’ Prefer?
Turning to the TipRanks’ stock comparison tool, traders can get an idea of which nicotine stock analysts favor. Philip Morris and Turning Point Brands lead the group with consensus Strong Buy ratings, while Altria has a Hold rating, and British American Tobacco has a Moderate Sell rating. PM stock has the highest upside potential at 20.14%, followed by TPB at 4.06%. MO and BTI have downside potentials.
