Why Turning Point Brands Stock Collapsed This Week

By Brett Schafer – Mar 6, 2026 at 6:31PM ESTKey PointsTurning Point Brands reported earnings this week. The company's nicotine pouch business is growing quickly, but it is coming at the expense of short-term profits. Shares of the stock look cheap if you believe fast pouch growth will continue. Shares of Turning Point Brands (TPB 0.70%) sank 33% this week, according to data from S&P Global Market Intelligence. A fast-growing player in the nicotine pouch space, Turning Point Brands missed on its earnings expectation in Q4 and is projecting weak guidance for 2026, according to Wall Street. The stock has been a large winner over the last year, and is still up around 50% in the last twelve months. Is now a great time to buy the dip on Turning Point Brands? Let's see why shares fell this week, and whether they are a buy for your portfolio today. ExpandNYSE: TPBTurning Point BrandsToday's Change(-0.70%) $-0.65Current Price$91.75Key Data PointsMarket Cap$1.8BDay's Range$89.85 - $93.1452wk Range$51.48 - $146.90Volume22KAvg Vol378KGross Margin57.08%Dividend Yield0.32% Weakened expectations Turning Point Brands owns Zig-Zag rolling papers for tobacco and marijuana, as well as Stoker's chewing tobacco. However, its crown jewel from a growth perspective is its modern oral business, namely nicotine pouches. Modern Oral revenue grew 266% year over year last quarter to $41.3 million and now makes up 34% of overall company sales. Management is guiding for further growth in 2026, with net revenue in modern oral of $180 million-$190 million. However, to scale up its nicotine pouch business, Turning Point Brands is now investing heavily in marketing and distribution, which will temporarily disrupt profitability. Adjusted earnings are expected to be $24 million to $27 million in the first quarter, down from $119 million in 2025 on an annualized basis. Image source: Getty Images. Time to buy the dip? After a rapid dip this week, Turning Point Brands' stock now trades at a market cap of $1.75 billion. It has a price-to-earnings ratio (P/E) of 29, which doesn't look that cheap. However, the company is still in investment mode, and trades at a price-to-sales ratio (P/S) of 3.7. This is a low figure for a fast-growing company in a sector with strong unit economics (nicotine). If you are a believer in Turning Point Brands and its nicotine pouch business, now could be a good time to buy the dip on the stock. Read NextMar 5, 2026 •By Micah Zimmerman3 Dividend Stocks to Buy in March and Hold for the Long TermMar 2, 2026 •By Josh Kohn-LindquistWhy Turning Point Brands Stock Is Plummeting TodayJul 27, 2022 •By Travis HoiumWhy Turning Point Brands Stock Plunged 19.6% TodayOct 26, 2021 •By Rich DupreyWhy Cigarette Alternative Turning Point Brands Is Tumbling TodayNov 2, 2020 •By Luis Sanchez CFAWhy Turning Point Brands Is a Tobacco Stock to WatchOct 20, 2020 •By Luis Sanchez CFAWhy This Tobacco Company Is Booming in 2020About the AuthorBrett Schafer is a contributing Motley Fool stock market analyst covering consumer goods, financials, technology, and industrials. Brett is a self-taught investor and has hosted the Chit Chat Stocks podcast since 2018. He previously worked as a lab engineer for science laboratories. He holds a bachelor’s degree in mechanical engineering with minors in finance and mathematics from Washington State University. His lab work on Major League Baseball’s juiced ball problem was featured in The Wall Street Journal and other national outlets.TMFBrettSchaferX@CCM_BrettStocks MentionedTurning Point BrandsNYSE: TPB$91.66(-0.80%)-$0.74*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.