10 Cheap and High-Quality Stocks Picked by Former SAC Capital Analyst

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

Number of Hedge Fund Holders: 19   

Prevatt Capital’s Stake: $24,400,000  

British American Tobacco p.l.c. (NYSE:BTI) provides tobacco and nicotine products. It is placed fourth on our list of top stock picks of Prevatt Capital. Earlier this year, British American Tobacco p.l.c. (NYSE:BTI) posted earnings for the fiscal year 2023, reporting a revenue of more than $34 billion, up over 3% year-on-year on an organic basis at constant rates. The firm ticks all the boxes for a value investor. It has strong cash flow generation, a high dividend yield, a low PE Ratio, strong operating margins, and growing revenues. Analysts predict the firm to increase share buybacks this year, a confidence-boosting measure for value investors.

Two key recent developments bode well for the short-term future of the company. British American Tobacco p.l.c. (NYSE:BTI) recently announced that the number of trade representatives of the firm have increased by 10%. This will help the tobacco company increase retail presence, taking on competitors like Altria and Phillip Morris. The launch of a new single-use vapor product is also likely to contribute to the revenue and volume numbers of the firm in the second half of this year. The leadership of British American Tobacco p.l.c. (NYSE:BTI) expects balance sheets to strengthen in the coming months.