The 3 Best Sin Stocks to Buy in 2019

Although they may get a bad reputation from certain groups, "sin stocks" offer investors an incredible pathway to profits. In fact, one of the top-performing stocks over the last five decades has been a sin stock...

Tobacco-maker Altria (NYSE: MO) saw its stock pop a whopping 14,042% between 1970 and 2018.

That's right. A $10,000 investment in Altria would have been worth $1,404,200 by the end of last year.

Learn How to Trade Like the Pros: Tom Gentile just recorded all of his most lucrative trading income secrets in America's No. 1 Pattern Trader Cash Course. This could set you up for life - and it'll only cost you $1...

That said, sin stocks like Atria aren't for everyone. Many universities and pension systems will avoid sin stocks on ethical or moral grounds. Any they wonder why their portfolios underperform...

Companies in the tobacco, alcohol, gambling, and military industries simply behave differently from most stocks. And there is plenty of academic research proving how uncorrelated these stocks are with the rest of the market.

But this uncorrelation is exactly what we're looking for because it provides the opportunity for above-market returns.

Our goal is to make you the most money possible, plain and simple. So, we put the power of our trusty VQScore™ system to the test this week and identified the top three sin stocks to buy in 2019. You'll recognize some of the names - and you'll definitely love the upside.

Best Sin Stocks to Buy in 2019, No. 3

[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]

Although smoking is on the decline in the United States, it remains a growing trend in global markets.

Of the estimated 1 billion smokers in the world, 80% live in low- and middle-income countries.

And Philip Morris International Inc. (NYSE: PM), which split off from Altria in 2008, is a dominant producer of tobacco products around the globe.

Financially, the firm provides a dividend of roughly 5%, which is more than double the 2% that the average S&P 500 company is currently paying.

PM stock has a "Strong Buy" VQScore rating of 4.45. And the stock is expected to climb...

With governments around the globe loosening regulations on medicinal and recreational cannabis, we expect Philip Morris will rush into the industry the same way its former parent Altria did in 2018.

When that happens, shares can pop 20% to 30% higher, to the $110 to $120 range.

Best Sin Stocks to Buy in 2019, No. 2

Taking a look at gambling companies, VQScore is giving us many different ones to choose from right now...

Casino operators like Red Rock Resorts Inc. (NYSE: RRR) and Monarch Casino & Resort Inc. (NASDAQ: MCRI) both have VQScores above 4.15.

And we've delivered big gains before in gambling stocks like Dover Downs Gaming & Entertainment Inc. (NYSE: DDE) - where we earned a whopping 107% in just a few weeks.

But Churchill Downs Inc. (NYSE: CHDN) is currently the best sports gambling stock to own.

In January, the company purchased the Presque Isle Downs racetrack and casino from Eldorado Resorts for $179 million. This deal immediately gives Churchill Downs a foothold into the growing legalized sports betting market in Pennsylvania.

Our conservative one-year price target on Churchill Downs is $103.50 (22% higher from here). But because of the company's high VQScore and ability to capitalize on the growing legal gambling trend, 50% upside is possible by the end of the year.

Best Sin Stocks to Buy in 2019, No. 1

When you think about sipping a cold one the beach, you probably imagine holding a Corona in your hand.

Well, Corona falls under the massive umbrella of the beer, wine, and spirits giant Constellation Brands Inc. (NYSE: STZ).

Constellation shares have taken a bit of a beating over the last year, but there are signs the company is turning a corner...

First, the firm is working on cleaning up its balance sheet. According to reports, it's now in talks to sell its low-end wine brands to E&J Gallow Winery. That deal could fetch about $2 billion.

When it comes to cheaper wines, the market is telling us consumers haven't been as interested in a $9 bottle of Clos du Bois. So, Constellation is focusing on ramping up sales of its higher-end products - which also happen to generate higher margins for the business.

The firm's premium-and-up wine brands like Black Box, Meiomi, Kim Crawford, and The Prisoner shot up 13.5%, 14%, 18%, and 22% respectively year over year during fiscal 2018.

But there's another angle that has made Constellation one of the best sin stocks moving forward...

Constellation purchased a massive $4 billion stake for 38% of Canopy Growth Corp. (NYSE: CGC) - the largest cannabis grower in the world. And the warrants on the deal could take STZ's ownership of CGC up to 50%. It's by far the largest deal in the legal marijuana space to date.

Our conservative Constellation price target is $206. That figure represents an upside of 23%.

But STZ's 4.75 VQScore signals that even bigger things are ahead. Should legal cannabis continue to explode - and it will - across North America, we could easily see Constellation stock jump 77% to $300 by the end of the year.

Bottom Line

While sin stocks may not be for everyone, finding breakout stocks should be. That's why Money Morning gives readers exclusive access to the VQScore system. Every week, we dig into the scores with "Strong Buy" ratings and help you identify the ones poised to break out in the weeks and months ahead. To learn more about the VQScore system, go here now.

Get Access to America's No. 1 Pattern Trader Cash Course (for Just $1)

Tom Gentile's seven-day Cash Course covers all the essential trading ideas you need to know to get the most out of your potential profits in 2019.

And not only will Tom review the basics, he'll share dozens of his most lucrative secrets to potentially start collecting anywhere from $1,190, $1,313, and even $2,830 in consistent income - each and every week.

All of this and more can be yours for only $1.

Click here to learn more...

Follow Money Morning onFacebook and Twitter.