British American Tobacco's stock is undervalued, with a low price-to-earnings ratio of 6 and a high dividend yield of 9.2%. The company's non-tobacco nicotine products, such as Velo nicotine pouches, are expected to grow 30% annually through 2030. With a Zyn shortage, Velo sales could accelerate, and British American Tobacco could benefit from a federal crackdown on illegal vaping products.
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