Is British American Tobacco Stock a Buy?

Stock market volatility has made many investors look for defensive investments, and tobacco stocks have traditionally fit the bill. British American Tobacco (NYSE: BTI) is a London-based company, but its acquisition of Reynolds American in 2017 gave BAT the No. 2 position in U.S. cigarette market share.

Yet even well before the coronavirus pandemic hit, British American was dealing with a host of challenges, and investors hadn't been very happy with the stock's performance. At this point, BAT's declines have made it look especially attractive to value investors, but prospective buyers want to know whether they're getting themselves into a value trap. Below, we'll look more closely at British American Tobacco and whether its stock is a good buy.