There are billions to be made, as money is being made hand over fist in states that allow marijuana sales. Big Tobacco and Big Pharma are a little late in the game, but would love to corner markets and production.
If When marijuana consumption becomes legalized at the federal level (and leaving aside health and moral issues), Big Tobacco should stake a claim. Cigarette makers are grappling with declining numbers of smokers, especially in the U.S. The smoking prevalence rate among Americans in 2014 -- the latest available data -- was 17.4 percent, down from 21 percent a decade ago.
Lower gas prices have helped tobacco stocks as of late because almost half of cigarette sales are made at gas-station convenience stores. However, the broader trend isn't moving in the industry's favor.