Market News / Story
Investors push into tobacco stocks amid interest rate anxiety
Seeking Alpha ·
Seeking Alpha reports: Investors are warming up to the tobacco sector on a day that spiking Treasury yields has the broad market in the red. Analysts note that in general tobacco stocks may outperform when interest rates rise because their steady cash flows and relatively low capital-spending needs make them somewhat less dependent on cheap financing. In addition, the pricing power in the tobacco sector can help offset inflation and declining cigarette sales to help support earnings. Unlike…