British American Tobacco: The New Categories' Opportunity And Challenge

British 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.