Why British American Tobacco Plc (BTI) Surged on Monday

We recently compiled a list of the 10 Firms Post Impressive Gains on Monday. In this article, we are going to take a look at where British American Tobacco Plc (NYSE:BTI) stands against the other stocks.

Wall Street ended the first trading day of the week on a mixed note, with the Dow Jones the sole gainer, up 0.65 percent.

The S&P 500 and Nasdaq both fell by a whopping 1.46 percent and 3.07 percent, respectively, over fears that China is overtaking the US in innovations in the Artificial Intelligence industry, dampening confidence at a time when the world’s largest economy is bolstering investments in the sector.

Meanwhile, ten companies under mixed sectors ended the day stronger. In this article, we will take a look at which of the 10 companies posted impressive gains during a broader market pessimism and look at the reasons behind their rally.

Monday’s top advancers only considered 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 Plc (NYSE:BTI)

Share prices in British American Tobacco increased by 4.43 percent on Monday to finish at $39.61 apiece as investors took heart from a move from President Donald Trump to nix a proposal to ban menthol cigarettes in the US.

According to reports, the draft ruling to ban menthol was officially withdrawn in a regulatory docket earlier this week, sending shares of tobacco makers popping during Monday’s trading.

Former president Joe Biden floated the possible ban on menthol cigarettes under his administration in a bid to save lives by reducing the tobacco epidemic. The ban was part of the administration’s cancer moonshot initiative, which aims to reduce the threat of cancer.

The tobacco industry is currently one of the largest revenue-generating industries in the US, and banning the sector would have cost the economy billions of dollars in lost revenues.

Overall BTI ranks 6th on our list of Monday’s top advancers. 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 Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

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