3 Reasons to Buy British American Tobacco Stock Like There's No Tomorrow
The chief argument against owning any tobacco stock these days is undeniably solid: Smoking is on its way out. Although the prevalence of smokers has been dwindling for years, sheer population growth has kept the industry moving forward anyway. Now, however, smoking cessation efforts have finally and fully caught up with the habit. The World Health Organization believes the worldwide number of smokers currently stands at a little less than 1.3 billion, down from 2015's count of 1.32 billion, en route to an estimated 1.27 billion by 2025. Assuming this trend persists, the number will eventually reach levels that simply aren't big enough to keep tobacco companies in business.
Yet it may be far too soon for investors to give up on tobacco giant British American Tobacco (NYSE: BTI). Indeed, there are three key reasons you might even want to make a point of stepping into this prospect sooner rather than later.
With just a superficial look the backdrop is grim. Smoking is on the defensive, and cigarettes still account for more than 80% of British American's business -- a business that contracted nearly 5% during the first half of this year (as measured by unit volume), extending a trend that's been underway for some time now.
Source Fool.com
