A.I.dvisor Flashing Bearish Signal for British American Tobacco (BTI)
Cigarette and e-cigarette manufacturer British American Tobacco (NYSE: BTI) dropped by over 50% during 2018 before rallying slightly in the past month. However, if Tickeron’s AI Prediction tool is accurate, the stock could be getting ready for another leg down.
The prediction model generated a bearish signal three days ago with an 84% confidence level. The signal calls for a decline of at least 4% over the coming month.
The daily chart shows a trend line connecting the highs from August, October, and November. The stock is challenging that trend line at this time, but the stock was in overbought territory based on the 10-day RSI and the daily stochastic readings. The stochastic readings just made a bearish crossover and the RSI just dropped out of overbought territory which would also suggest that a downturn is possible.
The fundamentals for BTI are a bit of a mixed picture. The earnings have been growing slowly while the sales have been growing at an above average pace. Earnings have averaged growth of 7% per year over the last three years while sales have grown at a rate of 14% over that same period. Earnings were up 5% in the most recent quarterly report while sales increased by 59%.
The company’s management efficiency measurements and profitability measures are also mixed. The return on equity is average at 15.9% while the profit margin is well above average at 39.3%.
Aroon Indicator for BTI shows an upward move is likely
BTI's Aroon Indicator triggered a bullish signal on June 26, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 256 similar instances where the Aroon Indicator showed a similar pattern. In of the 256 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on July 07, 2025. You may want to consider a long position or call options on BTI as a result. In of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where BTI advanced for three days, in of 365 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for BTI moved out of overbought territory on June 23, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 similar instances where the indicator moved out of overbought territory. In of the 27 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The Moving Average Convergence Divergence Histogram (MACD) for BTI turned negative on June 24, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BTI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BTI broke above its upper Bollinger Band on June 05, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.548) is normal, around the industry mean (4.036). P/E Ratio (25.819) is within average values for comparable stocks, (20.290). Projected Growth (PEG Ratio) (0.394) is also within normal values, averaging (0.994). Dividend Yield (0.062) settles around the average of (0.054) among similar stocks. P/S Ratio (3.020) is also within normal values, averaging (2.133).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 68, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BTI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
a retailer of tobacco related products
Industry Tobacco
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