Core Viewpoint - Philip Morris International Inc. has experienced a significant stock surge of 30.1% over the past six months, driven by its successful transition to the smoke-free market amid increasing health awareness and stricter anti-smoking regulations [1][2]. Group 1: Stock Performance - Philip Morris' stock performance has outpaced its peers, including Altria Group and British American Tobacco, which saw gains of 20.9% and 17.9%, respectively [2]. - The company's stock is currently trading at $130.39, approaching its 52-week high of $134.15, indicating strong upward momentum and positive market sentiment [5]. - Philip Morris has surpassed the Zacks Consumer Staples sector, which declined by 2.6%, and the S&P 500, which grew by 11% during the same period [2]. Group 2: Business Transformation - The smoke-free products segment has shown exceptional performance, with net revenues increasing by 16.8% organically and gross profit rising by 20.2% in Q3 2024 [8][9]. - The IQOS brand, a leading heat-not-burn device, generated over $10 billion in annual net revenues and is expanding globally, particularly in key markets like Japan and Europe [10]. - Philip Morris aims to have its smoke-free products available in 100 markets by 2025, currently reaching 92 markets [11]. Group 3: Financial Performance and Projections - The company has implemented cost-saving measures, achieving cumulative gross cost efficiencies of $490 million year-to-date, with a target of $2 billion in savings by 2026 [13]. - For 2024, Philip Morris expects net revenues to increase by 9.5% on an organic basis, with adjusted earnings per share projected to range between $6.45 and $6.51, reflecting a growth of 7.3% to 8.3% [14][15]. - Analysts have positively revised their earnings estimates, with the consensus for the current fiscal year set at $6.51 per share [16]. Group 4: Market Challenges - Philip Morris faces challenges such as regulatory pressures in markets where traditional tobacco products are still prevalent, which could hinder the growth of its smoke-free products [21]. - Currency volatility has negatively impacted the company's quarterly adjusted EPS and is projected to have a full-year adverse impact [22]. - The current market valuation of Philip Morris is higher than its industry peers, with a forward price-to-sales ratio of 5.09 compared to the industry average of 3.99, indicating potential overvaluation concerns [20].

This company is making all the right moves and running laps around the competition.Investors love dividends for their durability and stability during volatile markets. As anyone who has paid attention to the last five years is aware, we have seen quite volatile markets (both upward and downward). Steady dividend payments can help you weather the volatility storm.But what's an investor to do when the S&P 500 only pays an average dividend that yields 1.32%? That is not much annual income and significantly wor ...

Betting on dividend growth can lead to strong returns over the long haul. Billionaire Stan Druckenmiller called the Nvidia bull run over the last few years. The retired hedge fund manager made a big bet on artificial intelligence (AI), and it paid off handsomely for his portfolio. Now, he has purchased shares of a company in an entirely different sector: Philip Morris International (PM -0.06%). The largest tobacco company by market cap in the world now makes up over 3% of Druckenmiller's portfolio, and that ...

As November gets underway, Schaeffer's Senior Quantitative Analyst Rocky White compiled a list of the 25 worst S&P 500 (SPX) stocks to own this month, with data going back 10 years. Notably, the catalogue is topped by three oil stocks, though there are plenty of other names worth mentioning. Tobacco name Philip Morris International Inc (NYSE:PM) is sixth on the list, finishing the month lower six times in the last decade. The stock averaged a loss of 0.3% during this time, so those hoping for PM to break ou ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles. Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within th ...

I am a 35-year stock market investor, MBA, and retired reporter and editor for the San Francisco Chronicle. I also was a featured investor with the investment app Netvest. My primary style is a mix of growth and income, with attention to special situations.Analyst’s Disclosure: I/we have a beneficial long position in the shares of PM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than ...

Shares of Philip Morris International (NYSE: PM ) hit a new all-time high last week after the tobacco company submitted a better than expected earnings report card for the third-quarter. The tobacco firm presented a strong outlook for the full-year as well Analyst's Disclosure: I/we have a beneficial long position in the shares of MO, BTI, PM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (o ...

Core Viewpoint - Philip Morris International has shown strong performance and growth potential, particularly in next-generation products, making it an attractive investment opportunity despite the overall decline in smoking rates globally [2][4][6]. Company Performance - Philip Morris reported third-quarter revenue of $9.91 billion, reflecting an 11.6% organic growth, surpassing analyst estimates of $9.69 billion [4]. - The company's smoke-free business generated organic revenue growth of 16.8%, amounting to $3.8 billion, while the combustibles segment saw an 8.6% organic revenue increase, with cigarette volumes rising by 1.3% to 163.2 billion [4][5]. - Organic operating income increased by 13.8% to $3.7 billion, and adjusted earnings per share (EPS) rose by 14.4% to $1.91 [5]. Growth Drivers - Approximately 40% of Philip Morris's revenue now comes from next-generation products, including Iqos devices and Zyn nicotine pouches, with significant investments in expanding production capabilities [4]. - Shipments of Zyn increased by 22.2% to 4.4 billion, contributing to the company's overall growth [5]. Future Outlook - The company raised its full-year adjusted EPS guidance to a range of $6.45 to $6.51, up from the previous range of $6.33 to $6.45, indicating strong future performance [5]. - Philip Morris trades at a premium price-to-earnings (P/E) ratio of 20, reflecting investor confidence in its growth prospects, especially compared to peers trading at single-digit P/E ratios [6]. - The company offers a 4.5% dividend yield and recently increased its dividend by 3.8% to $1.35 per quarter, suggesting a commitment to returning value to shareholders [6].

Zyn continues to power the company's growth. The tobacco space hasn't been viewed as a place to find growth stocks in a very long time. However, Philip Morris International (PM -2.21%) may be changing that narrative as its smoke-free business continues to drive tremendous momentum for the company. The stock recently hit an all-time high on the back of yet another strong quarter and is up over 40% year to date. Let's dig into the tobacco company's third-quarter results to see if the stock's rise can continue ...