We recently compiled a list of the Weak Earnings, Outlook Drag Shares of These 10 Firms on Thursday. In this article, we are going to take a look at where British American Tobacco p.l.c. (NYSE:BTI) stands against the other stocks.

The stock market finished firmer on Thursday, as investors cheered fresh inflation data and tariff updates that helped alleviate concerns about inflationary pressures and global trade tensions.

The Dow Jones rose by 0.77 percent, the S&P 500 increased 1.04 percent, while the Nasdaq jumped 1.50 percent.

Despite overall market gains, ten companies managed to register declines, mostly due to disappointing earnings performance, a weaker outlook, and downgraded ratings.

To come up with Thursday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A close-up of an array of tobacco products, emphasizing the selection and consumer choice.

British American Tobacco p.l.c. (NYSE:BTI)

British American Tobacco p.l.c. (NYSE:BTI) sank by 7.32 percent on Thursday to end at $39.61 apiece as investors sold off positions following dismal earnings performance in 2024, coupled with continued expected headwinds for the rest of the year.

On Thursday, British American Tobacco p.l.c. (NYSE:BTI) announced a drop of 5.2 percent in revenues at £25.87 billion, primarily due to the sale of its business in Russia and Belarus in September 2023, coupled with translational foreign exchange headwinds. Meanwhile, analysts expected the company to clock in revenues worth £26.11 billion.

For this year, British American Tobacco p.l.c. (NYSE:BTI) expects significant regulatory and fiscal headwinds to persist, particularly in its combustibles performance in Bangladesh and Australia.

However, British American Tobacco p.l.c. (NYSE:BTI) CEO Tadeu Marroco said he is confident that the company will progressively build on its delivery as it shifts from investment to deployment.

“We remain committed to returning to our mid-term guidance of 3-5 percent revenue and 4-6 percent adjusted profit from operations growth on a constant currency in 2026,” he said.

Overall BTI ranks 8th on our list of Thursday's top losers. While we acknowledge the potential of BTI as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BTI but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

 

Disclosure: None. This article is originally published at Insider Monkey.