Tobacco stocks present an underappreciated opportunity.
Brexit uncertainty, trade tension, and political unrest have pressured consumer cyclical stocks.
Despite the dividend cut, profit contraction, and SEC investigation, we think shares are undervalued.
Shares are trading around a 15% premium to our valuation for the wide-moat firm.
The narrow-moat firm's results show that it is withstanding intense competitive and macro headwinds well, and our long-term outlook remains.