Turning Point Brands Inc rises amid sector rotation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 05 2024
0mins
Should l Buy TPB?
Source: 4
Turning Point Brands Inc saw a price increase of 6.76% as it crossed above the 5-day SMA, reflecting a positive shift in investor sentiment.
This movement occurs amid a broader market context where the Nasdaq-100 is up 1.05% and the S&P 500 is up 0.70%. However, the tobacco sector is facing challenges, as indicated by a recent decline in cigarette and tobacco stocks, which collectively fell by approximately 2.6%. This suggests a sector rotation as investors reassess their positions in traditional consumer goods, impacting Turning Point Brands despite the overall market strength.
The implications of this price movement indicate that while Turning Point Brands is experiencing a short-term gain, the long-term outlook remains uncertain due to ongoing regulatory pressures and changing consumer preferences in the tobacco industry.
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Analyst Views on TPB
Wall Street analysts forecast TPB stock price to fall
5 Analyst Rating
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 132.620
Low
110.00
Averages
116.67
High
120.00
Current: 132.620
Low
110.00
Averages
116.67
High
120.00
About TPB
Turning Point Brands, Inc. is a manufacturer, marketer and distributor of branded consumer products. It sells a range of products to adult consumers, consisting of staple products under the brands Zig-Zag and Stoker’s. Its segments include Zig-Zag Products (Zig-Zag) and Stoker’s Products (Stoker’s). Zig-Zag principally markets and distributes rolling papers, tubes, and related products; finished cigars and make-your-own cigar wraps, and other accessories. It introduced Zig-Zag ‘Rillo-sized wraps, which are similar in size to cigarillos, a type of machine-made cigars. Stoker’s manufactures and markets moist snuff tobacco (MST) and contract for and market FRE, its modern oral product and contract for and market loose-leaf chewing tobacco products. Its products are available in approximately 200,000 in the United States retail locations which, with the addition of retail stores in Canada, brings its total North American retail presence to an estimated 220,000 points of distribution.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Performance Comparison: Since February 2021, Altria's total return has reached 128.6%, far exceeding the S&P 500's 85.8% and outperforming Coca-Cola and Procter & Gamble, showcasing its strong performance in the consumer goods sector despite challenges in industry innovation.
- Dependence on Tobacco Products: While Altria generates around 88% of its revenue from smokeable products, its competitor Philip Morris International has successfully derived 41.5% of its revenue from smoke-free products, highlighting Altria's lag in adapting to market changes, which could impact future growth potential.
- Future Growth Potential: Altria is expected to continue offsetting declining cigarette volumes through price increases, and if it can successfully launch smokeless products, it could significantly enhance its valuation, with a current price-to-earnings ratio of only 12 times, indicating its attractiveness as a long-term investment.
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- Superior Investment Returns: Over the past five years, Altria has generated annualized returns nearing 18%, significantly outperforming the S&P 500's 13%, indicating that despite lagging in industry innovation, Altria can still deliver substantial returns to investors.
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- Product Features: The brand utilizes 100% American-grown tobacco and employs traditional curing and flavoring processes, offering a distinct long cut tobacco experience that enhances product diversity within the portfolio.
- Market Positioning: Stoker's Proud meets consumer needs for convenience and familiarity by providing a classic 1.2-ounce can format while maintaining the brand's core values and quality standards.
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- Momentum Indicator Analysis: The RSI serves as a momentum indicator by comparing the strength of a stock on up days versus down days, providing traders with insights into short-term performance, and an overbought condition may prompt a reassessment of holding strategies.
- Market Reaction Expectations: The emergence of overbought signals may lead investors to adopt a cautious stance regarding the future performance of TPB and THS, potentially impacting their short-term stock price movements and increasing market volatility.
- Investment Strategy Adjustment: In light of the overbought warnings, investors may need to reevaluate their momentum trading strategies to avoid losses during potential corrections, especially in the current market environment.
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- Dividend Yield Advantage: Altria Group currently boasts a 6.3% dividend yield, and over the past five years, shareholders have achieved nearly 18% annualized returns through reinvested dividends, significantly outperforming the S&P 500's 13%, indicating its continued appeal among dividend investors.
- Market Performance Comparison: Since February 2021, Altria's total return has reached 128.6%, far exceeding the S&P 500's 85.8% and outperforming Coca-Cola and Procter & Gamble, showcasing its strong performance in the consumer goods sector despite challenges in industry innovation.
- Dependence on Tobacco Products: While Altria generates around 88% of its revenue from smokeable products, its competitor Philip Morris International has successfully derived 41.5% of its revenue from smoke-free products, highlighting Altria's lag in adapting to market changes, which could impact future growth potential.
- Future Growth Potential: Altria is expected to continue offsetting declining cigarette volumes through price increases, and if it can successfully launch smokeless products, it could significantly enhance its valuation, with a current price-to-earnings ratio of only 12 times, indicating its attractiveness as a long-term investment.
See More
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- Dividend Growth: Altria Group has raised its dividend for 56 consecutive years, achieving Dividend King status with a current forward yield of 6.3%, which not only boosts investor confidence but also provides a stable cash flow for the company.
- Superior Investment Returns: Over the past five years, Altria has generated annualized returns nearing 18%, significantly outperforming the S&P 500's 13%, indicating that despite lagging in industry innovation, Altria can still deliver substantial returns to investors.
- Dependence on Tobacco Products: Although Altria has made slow progress in transitioning to smoke-free products, it still derives around 88% of its revenue from combustible products; however, successful future launches of smoke-free products could significantly enhance the company's valuation and market performance.
- Acquisition Potential: To bolster its smokeless product line, Altria may consider acquiring smaller competitors like Turning Point Brands, which could not only enhance earnings growth but also drive valuation expansion, as Altria currently trades at a forward P/E of just 12 times, well below competitors' 22 times.
See More
Stoker's Launches New Sub-Brand Stoker's Proud to Meet Consumer Demand
- New Brand Launch: Stoker's Proud, a new sub-brand from Stoker's, is designed to meet the growing consumer demand for high-quality, affordable tobacco products, reflecting the company's keen awareness of market trends.
- Product Features: The brand uses 100% American-grown tobacco and continues Stoker's traditional curing processes, offering a more classic long cut tobacco format that ensures product quality and brand consistency.
- Market Positioning: By providing competitively priced options, Stoker's Proud broadens the Stoker's portfolio, aiming to attract consumers seeking affordable choices and further solidifying its market leadership.
- Sales Channels: The new products are now available through authorized distributors and select retailers nationwide, with consumers able to purchase them on Stokers.com, showcasing Stoker's proactive approach to market promotion.
See More
Stoker's Proud Launches Affordable Tobacco Products
- New Brand Launch: Stoker's Proud, as a new sub-brand of Stoker's, aims to meet consumer demand for high-quality, affordable tobacco products, marking a significant expansion in the brand's market presence.
- Product Features: The brand utilizes 100% American-grown tobacco and employs traditional curing and flavoring processes, offering a distinct long cut tobacco experience that enhances product diversity within the portfolio.
- Market Positioning: Stoker's Proud meets consumer needs for convenience and familiarity by providing a classic 1.2-ounce can format while maintaining the brand's core values and quality standards.
- Brand Heritage: With over 85 years of history, Stoker's holds the leading position in the chewing tobacco category, and the launch of Stoker's Proud further solidifies its dominance in the moist snuff market.
See More
Warning Signs for Momentum Investors in Consumer Staples
- Overbought Warning: As of January 29, 2026, two stocks in the consumer staples sector, Turning Point Brands Inc (NYSE:TPB) and TreeHouse Foods Inc (NYSE:THS), are showing overbought signals with an RSI above 70, indicating potential short-term price correction risks.
- Momentum Indicator Analysis: The RSI serves as a momentum indicator by comparing the strength of a stock on up days versus down days, providing traders with insights into short-term performance, and an overbought condition may prompt a reassessment of holding strategies.
- Market Reaction Expectations: The emergence of overbought signals may lead investors to adopt a cautious stance regarding the future performance of TPB and THS, potentially impacting their short-term stock price movements and increasing market volatility.
- Investment Strategy Adjustment: In light of the overbought warnings, investors may need to reevaluate their momentum trading strategies to avoid losses during potential corrections, especially in the current market environment.
See More
Altria Group, Inc. (MO) Accelerates Shift to Smoke-Free Products with 14.8% Growth in Oral Nicotine Sales
- Smoke-Free Transition: Altria Group is accelerating its shift towards smoke-free products in Q3 2025, particularly in oral nicotine and heated tobacco, demonstrating ongoing market adaptability and strategic realignment.
- Oral Nicotine Growth: The on! brand saw a 14.8% increase in shipment volumes to 133.6 million cans over the first nine months of 2025, maintaining a stable retail share of 8.7%, which lays a solid foundation for future growth in a competitive market.
- New Product Launch: Altria introduced the premium on! PLUS in select U.S. markets, aimed at attracting both existing smokeless users and adult consumers migrating from competing brands, thereby enriching its oral nicotine portfolio.
- Regulatory Progress: Altria filed a combined application with the FDA for the Ploom device and Marlboro heated tobacco sticks, marking a pivotal advancement in its smoke-free strategy and laying the groundwork for future market introduction in the U.S.
See More
