British American Tobacco PLC

The US Food and Drug Administration has authorized Philip Morris International's ZYN nicotine pouches as modified risk tobacco products, making ZYN the first and only smoke-free nicotine pouch to receive this regulatory status in the United States. The decision recognizes the company's harm reduction science and sets a new benchmark for smoke-free alternatives. The authorization explicitly links complete switching from cigarettes to ZYN with lower exposure to harmful chemicals and a lower expected risk of several smoking-related diseases. The ruling comes with strict conditions on communication and surveillance, so ZYN's contribution will depend on how Philip Morris International balances commercial rollout with these obligations. The move strengthens the company's push toward smoke-free products at a time when traditional cigarettes face ongoing regulatory and volume pressure, and gives it a differentiated regulatory asset in the US nicotine pouch category against competitors such as Altria, British American Tobacco, and Japan Tobacco.

Turning Point Brands is pivoting from legacy tobacco to high-growth nicotine pouches, targeting a 10% U.S. market share by 2030 that could represent a $1.5 to $2.5 billion revenue opportunity against trailing twelve-month sales of approximately $481 million. The company is investing in a new Louisville, Kentucky manufacturing facility expected to lift gross margins above 60% and EBITDA margins above 25% once scaled, though near-term spending on production, marketing, and distribution is temporarily suppressing profitability. Its ALP brand, backed by a joint venture with Tucker Carlson, has expanded from roughly 1,000 to 10,000 stores within months, while FRE is building retail presence through sports partnerships. Despite intense competition from Zyn, On!, and Velo, the bullish thesis sees the recent 40% share-price decline as an attractive entry point, with shares trading at roughly 12 times estimated 2027 free cash flow and offering potential for a 7- to 10-times return over five years if execution meets expectations.

British American Tobacco is cutting 5,500 jobs and outsourcing another 3,500 roles by the end of this year, equal to about one-fifth of its 47,000-person global workforce, as part of a plan to deliver 600 million in annual cost savings by the end of 2028. The figures do not include BAT's US business, which operates through Reynolds American. Certain roles in the UK, Singapore, Costa Rica, Mexico, Poland, Romania and Malaysia have moved to Accenture, while some roles in Pakistan have been outsourced to Systems Ltd. The restructuring comes as BAT faces weaker demand for traditional cigarettes and invests more heavily in smoke-free products like Vuse vapes and Velo nicotine pouches, aiming for more than half of revenue to come from these alternatives.

Comcast announced plans to separate into two independent publicly traded companies through a tax-free spin-off of NBCUniversal and Sky, expected to be completed in approximately one year. Following the transaction, Comcast shareholders will own shares in both companies, with Comcast retaining a stake of up to 19.9% in NBCUniversal for up to one year after completion. Separately, Rocket Lab announced a cash-and-stock deal valued at approximately $8 billion to acquire Iridium Communications, creating a vertically integrated space company. Iridium shareholders will receive $27.00 in cash plus Rocket Lab shares for each Iridium share, for a total implied value of $54.00 per share. The Supreme Court rejected in a 5-4 decision President Donald Trump's attempt to immediately fire Federal Reserve Board Governor Lisa Cook, allowing her to stay on the central bank board while her lawsuit proceeds. British American Tobacco announced plans to cut 5,500 jobs and move a further 3,500 roles to strategic partners, affecting about 20% of its global workforce, as it accelerates an AI-driven transformation program expected to generate an additional £600 million in annualized cost savings by 2028.

GameStop shares rose Monday after the video game retailer projected adjusted EBITDA of more than $600 million for fiscal 2027, up sharply from $345.4 million in fiscal 2025. The company also said its leadership remains focused on advancing its proposed acquisition of eBay, reinforcing its strategic expansion plans. Earlier in May, GameStop submitted a non-binding proposal to acquire eBay at $125 per share in cash and stock, and has increased its stake to 7.8% of eBay’s outstanding shares through derivative-linked structures. Among other notable movers, Comcast surged 23% after announcing a tax-free spin-off of NBCUniversal into a separate publicly traded company, while British American Tobacco slipped 2% on plans to cut 5,500 jobs as part of an AI-driven restructuring expected to deliver an additional £600 million in annualized cost savings by 2028.

Shopify is reportedly preparing to ban all vape products from its platform as soon as this week, following pressure from U.S. state attorneys general over illegal e-cigarette sales. Reuters reported that Shopify has been in talks since last year with a bipartisan group of 25 state attorneys general, who have pushed the company to crack down on vape sellers operating without legally required U.S. licenses or violating other laws. A Shopify spokesperson said the company has always prohibited illegal activity and takes action when merchants violate its rules, adding that enforcement decisions consider global legal frameworks and are not based on pressure from any single group. The move could disrupt e-commerce sellers and create a chilling effect across the vape market, where British American Tobacco has estimated the illegal U.S. vape market at about $9 billion.

Zacks Equity Research has identified Philip Morris International, British American Tobacco, and Altria Group as tobacco stocks worth watching despite persistent pressure on cigarette volumes, elevated costs, and a rapidly evolving product landscape. The Zacks Tobacco industry carries a Zacks Industry Rank of 217, placing it in the bottom 12% of more than 247 Zacks industries, with the consensus estimate for the industry's current financial-year earnings having decreased 0.5% since the beginning of April 2026. Over the past year, the industry has gained 5.4%, underperforming the S&P 500's 29.5% rise but outperforming the broader Zacks Consumer Staples sector's 0.6% growth, and it currently trades at a forward 12-month price-to-earnings ratio of 15.52X. Philip Morris, a Zacks Rank #3 stock, has seen its 2026 and 2027 earnings per share estimates remain unchanged at $8.43 and $9.23 respectively, while its shares have fallen 1.8% in the past year. British American Tobacco, also a Zacks Rank #3, has had its 2026 and 2027 EPS estimates edge down to $4.81 and $5.22, yet its shares have jumped 20.5% over the same period. Altria Group, another Zacks Rank #3, has maintained 2026 and 2027 EPS estimates of $5.68 and $5.87, with its shares surging 15.9% in the past year.