Turning Point Brands (TPB) has gained 106.3% since being added to Hedgeye’s Signal Strength Stocks on June 14, 2024.
We identified this “double bagger” through our proven “triple-tested” stock-picking process—combining fundamental, quantitative, and macro analysis.
Consumables Analyst Howard Penney and our CEO Keith McCullough both believe this stock is headed higher.
Here’s how our investing process works:
1. Fundamentally Approved
TPB is a leader in the tobacco and nicotine alternative market, leveraging an asset-light model focused on branding and distribution across 217,000 North American locations.
Its modern oral nicotine product, FRĒ, is rapidly scaling and poised to capitalize on the growing $10–15 billion non-combustible nicotine market.
The company is expanding FRĒ into convenience stores and alternative channels like cannabis dispensaries while managing regulatory risks and supply chain complexities.
TPB's ability to navigate headwinds while executing on its strategic initiatives solidifies its position as a Best Idea Long for Hedgeye.
2. Signal Approved
On top of our research team's fundamental analysis, our quantitative signaling process plays the most important role.
Since Hedgeye CEO Keith McCullough’s signal turned bullish, and it was added to our Signal Strength Stocks product on 6/14/24, TPB has gone up 106.3%. Our signals incorporate fractal-based calculations to get ahead of big stock moves.
The best part? It’s not too late to get in on this winning stock pick, as our signal remains bullish, predicting a continued bullish trend for this stock.
However, this relies on a strong overall economy to promote growth. That’s where our extensive Macroeconomic analysis plays a role.
3. Macro: Neutral
TPB’s strategy fits well with Hedgeye’s Macro process, which looks for long-term growth opportunities in strong consumer markets.
The company is capitalizing on growing demand for oral nicotine products and expanding into cannabis and hemp, positioning itself to thrive alongside shifting consumer trends and regulatory changes.
As you can see, our triple-tested stock picking process that combines fundamental, quantitative, and macro analysis can be leveraged to help protect and grow your investments.
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