Chicago, IL – March 31, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Altria Group MO, Las Vegas Sands LVS, Molson Coors Beverage Co. TAP, Wynn Resorts, Ltd. WYNN and Philip Morris International Inc. PM.
Here are highlights from Friday’s Analyst Blog:
Investing in "sin stocks" — shares of companies engaged in industries deemed unethical or immoral by some — has long been a subject of debate. These include companies operating in industries considered unethical or controversial, such as alcohol, tobacco and gambling. Despite the moral concerns, sin stocks have historically outperformed broader markets and offered attractive returns due to their strong cash flows, loyal customer bases and inelastic demand. While ethical investing has gained traction, many investors still see these stocks as resilient and lucrative.
A key reason sin stocks tend to perform well is their ability to thrive in both economic booms and downturns. These stocks offer several advantages, including stable demand, strong pricing power and consistent dividend payouts. These industries have historically been recession-proof, as consumers continue to gamble, drink and use tobacco regardless of economic conditions. These industries also generate a significant free cash flow, allowing companies to reward shareholders with dividends and stock buybacks.
For instance, Altria Group dominates the tobacco industry, consistently delivering strong dividends, thanks to its market presence and pricing strategy. Similarly, as sports betting legalization accelerates and online gaming expands, Las Vegas Sands has positioned itself as a leader in the gambling sector.
Alcohol companies thrive on steady consumer demand and strong brand loyalty. According to ResearchAndMarkets.com, the U.S. alcoholic beverages market is projected to grow from $543.13 billion in 2024 to $806.44 billion by 2033, seeing a CAGR of 4.99%. Meanwhile, Grand View Research forecasts that the global alcoholic drinks market will expand at a CAGR of 9.7% from 2025 to 2030.
The tobacco industry is also evolving, with companies investing in reduced-risk alternatives like e-cigarettes and heated tobacco products. A SkyQuest report estimates that the global tobacco market will grow from $899.9 billion in 2024 to $1,157.8 billion by 2032, achieving a CAGR of 3.2% over 2025-2032.
The gambling industry has experienced significant expansion, driven by online betting, casino growth and sports wagering legalization. According to Grand View Research, the North America online gambling market was valued at $16.56 billion in 2024 and is projected to expand at a CAGR of 12.2% from 2025 to 2030.
With strong brand recognition, pricing power and recession-resistant qualities, sin stocks remain an attractive option for many investors. While ethical concerns may deter some investors, others see them as an opportunity to capitalize on industries with deep-rooted consumer demand and long-term financial strength.
If you are looking to capitalize on this trend, our Sin Stocks Screen makes it easy to identify high-potential stocks such as Molson Coors Beverage Co., Wynn Resorts, Ltd. and Philip Morris International Inc..
Molson Coors, a legacy brewer with a rich history in the beer industry, has been actively transforming its business to align with evolving consumer preferences. Facing a competitive market landscape and shifting consumer demands, the company has prioritized premiumization, innovation and revitalization to fuel sustainable growth. By investing strategically, diversifying its product portfolio and emphasizing higher-margin brands, Molson Coors is strengthening its position as a leader in the evolving beverage landscape.
TAP is successfully adapting to shifting consumer preferences by enhancing its portfolio with premium offerings, expanding innovation beyond beer and modernizing its core operations for greater efficiency. The company has broadened its portfolio beyond traditional beer to meet the rising demand for premium and super-premium beverages. This focus on premiumization is reflected in the expansion of high-end beer brands, a stronger presence in the craft beer segment, and a growing emphasis on spirits and ready-to-drink cocktails.
Innovation remains central to the Zacks Rank #1 (Strong Buy) company's long-term growth strategy, driving initiatives, such as the Beyond Beer expansion, advancements in product and packaging, and a stronger digital presence. Molson Coors is also implementing a structured revitalization plan aimed at strengthening its core beer business and optimizing operational efficiency. As TAP continues to build on these strategic initiatives, it is well-positioned to cement its status as a leading total beverage company. You can see the complete list of today's Zacks #1 Rank stocks here.
Wynn Resorts has established itself as a global leader in luxury hospitality, gaming and entertainment, consistently setting the standard for premium experiences. As consumer preferences evolve, the company has adopted a comprehensive growth strategy centered on expansion, innovation and operational excellence. By entering new markets, enhancing its high-end properties and prioritizing customer-centric luxury offerings, Wynn Resorts continues to strengthen its position in the ultra-premium hospitality sector.
WYNN is venturing into high-growth markets while reinforcing its presence in key destinations to expand its global footprint. One of its most ambitious projects, Wynn Al Marjan Island in the United Arab Emirates, marks its first entry into the Middle East, promising to redefine luxury in the region. In Macau, Wynn is diversifying beyond gaming with investments in luxury retail, fine dining and cultural experiences as part of its renewed gaming concession agreement. Meanwhile, Wynn Las Vegas remains a flagship property, continuously elevating its casino floor, VIP gaming salons and world-class entertainment offerings to maintain its reputation as a premier luxury destination.
Wynn Resorts' growth strategy is driven by expansion, digital transformation and innovation in luxury hospitality. The Zacks Rank #2 (Buy) company is enhancing its guest experience through the renovation of Wynn Tower Suites and Encore Villas, and the introduction of wellness-focused accommodations and immersive relaxation experiences, catering to the rising demand for high-end wellness tourism.
At the same time, cutting-edge technology, including AI-driven personalization and smart resort innovations, is improving both guest engagement and operational efficiency. By maintaining a strong focus on financial discipline, cost optimization, and high-margin revenue streams, Wynn Resorts ensures sustainable growth, reinforcing its leadership in the competitive luxury travel, hospitality and gaming industries.
Philip Morris is undergoing a groundbreaking transformation, reshaping its business model to lead the industry toward a smoke-free future. Once known primarily for traditional cigarettes, the company has emerged as a dominant force in reduced-risk products, capitalizing on innovation, acquisitions and strong pricing power to fuel its evolution. By accelerating the adoption of smoke-free alternatives like IQOS and ZYN, the company is redefining its product portfolio and reinforcing its commitment to a healthier, more sustainable future — all while maintaining solid financial performance.
At the core of Philip Morris' growth strategy is the aggressive expansion of its smoke-free portfolio, bolstered by strategic market penetration and a resilient combustible business. Key initiatives include the rapid global rollout of IQOS, the acquisition of Swedish Match to strengthen its position in the nicotine pouch market and the continued optimization of its traditional tobacco segment. PM is leading the smoke-free revolution, with reduced-risk products now accounting for a significant portion of total revenues. Meanwhile, the company's strong pricing discipline ensures revenue growth, even as cigarette volumes decline, demonstrating its ability to navigate shifting consumer preferences while maximizing profitability.
Philip Morris' transformation is not just about diversification; it represents a fundamental industry shift. With IQOS and ZYN fueling momentum, a robust pricing strategy sustaining financial strength and relentless innovation enhancing consumer experiences, the Zacks Rank #3 (Hold) company is well-positioned for long-term success. As the company moves closer to its goal of becoming a majority smoke-free business by 2030, it continues to set benchmarks for innovation, sustainability and leadership in the evolving global tobacco industry.
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Altria Group, Inc. (MO) : Free Stock Analysis Report
Philip Morris International Inc. (PM) : Free Stock Analysis Report
Las Vegas Sands Corp. (LVS) : Free Stock Analysis Report
Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
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