British American Tobacco: The New Categories' Opportunity And Challenge

Manika PremsinghInvesting GroupFollow5ShareSavePlay(9min)CommentsSummaryBritish American Tobacco has outperformed the S&P 500 YTD, rising ~6% amid market uncertainty, supported by resilient fundamentals.BTI's new categories segment now contributes 14% to revenues and saw 7% growth in 2025 despite multiple challenges.The company's overall performance in the past year, its outlook for 2026 and beyond, the market multiples and dividends, all work in its favour too.Looking for a helping hand in the market? Members of Green Growth Giants get exclusive ideas and guidance to navigate any climate. Learn More » OLEKSII KRIACHKO/iStock via Getty Images Uncertain times are good for defensive stocks, and 2026 isn't turning out to be any different. Even as the S&P 500 (SP500) is down by 1% YTD, British American Tobacco p.l.c. (NYSE:BTI) (OTCPK:BTAFF) or BAT is up by ~6%. TheThis article was written byManika Premsingh4.5K FollowersFollowManika is a macroeconomist with over 20 years of experience in industries including investment management, stock broking, investment banking. She also runs the profile Long Term Tips [LTT], which focuses on the generational opportunity in the green economy. Her investing group, Green Growth Giants, takes the theme a step further from LTT with a deeper dive into opportunities presented by the segment.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in BTI over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.