(compared to a 44.8% share for Altria's Phillip Morris USA and a 32% share for Reynolds American ), but it boasts a solid moat.Īccording to management, Vector Group's core Liggett brand boasts a cost advantage of $0.79 per pack compared to its larger rivals - these low production costs can help the company pad profits or keep prices lower than rivals' to gain market share. The company has a small market share of just 4.1% in the U.S. And Vector Group is particularly well-suited to challenging economic environments because of its focus on lower-priced discount cigarette brands like Pyramid, Grand Prix, and Liggett. Great growth stocks Etsy (NASDAQ:ETSY), 48, E-commerce MercadoLibre (NASDAQ:MELI), 63, E-commerce Netflix (NASDAQ:NFLX), 18, Streaming entertainment. Tobacco isn't a growth industry, but it is resilient. And its real estate arm performed surprisingly well during the coronavirus crisis because of its exposure to a wide range of geographic markets in the U.S. The company's tobacco business is a reliable cash cow. Vector Group is a top pick for investors who prioritize diversification and income. With so many compelling tailwinds, MGM's current valuation of just 13 times trailing-12-month EPS looks downright cheap.

If BetMGM maintains its current market share of 17%, that could represent an additional $4 billion in revenue for MGM and its partner Entain holdings over the next four years. Management has high hopes for the opportunity and expects the overall market to be valued at $25.3 billion a year by 2025. Sports betting is arguably the most exciting reason to invest in MGM.

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