Core Insights - The Consumer Staples sector is currently underperforming, ranking among the bottom 32% of Zacks classified sectors, with earnings expected to decline in the upcoming reports [2][3]. Industry Overview - U.S. consumer stocks are facing challenges such as weakening consumer confidence, persistent inflation, and pressure on discretionary spending, which are squeezing margins and making earnings growth difficult [3]. - Global demand uncertainty, inflationary pressures, weather volatility, and geopolitical concerns are further constraining margins and limiting near-term earnings growth [3]. Earnings Performance - As of now, 26.7% of Consumer Staples companies have reported earnings, with a year-over-year earnings decline of 3.7% and a revenue drop of 1.1% [5]. - For the December quarter, earnings are expected to decline by 2.4% year-over-year, while revenues are projected to rise by 2.4% [6]. Company-Specific Insights - **Estee Lauder Companies Inc. (EL)**: Expected to report revenue of $4.22 billion, a 5.3% increase year-over-year, with earnings estimated at 83 cents per share, reflecting a 33.9% growth [8]. The company is benefiting from its Profit Recovery and Growth Plan [9]. - **Hershey Company (HSY)**: Anticipated to report revenues of $3 billion, a 4% increase, but earnings are expected to decline by nearly 48% to $1.40 per share [10][11]. Continued demand in its core portfolio is expected to support results despite margin pressures [11]. - **Newell Brands Inc. (NWL)**: Expected to see a revenue decline to $1.89 billion, a 3.3% drop, while earnings are projected to grow by 12.5% to 18 cents per share [12]. The company is facing challenges from inflation and geopolitical volatility [12]. - **Coty Inc. (COTY)**: Projected to report revenues of $1.66 billion, a slight decline of 0.3%, with earnings expected to increase by 63.6% to 18 cents per share [13]. The company is experiencing revenue constraints due to a highly promotional market and tariff pressures [13]. - **Philip Morris International Inc. (PM)**: Expected to report revenues of $10.4 billion, a 7.3% increase, with earnings stable at $1.67 per share, reflecting a 7.7% growth [14]. The company is benefiting from strong pricing power and a growing smoke-free product portfolio [14].

Core Insights - Philip Morris International Inc. (PM) is expected to show growth in both revenue and earnings for Q4 2025, with revenue estimates at approximately $10.4 billion, reflecting a 7.3% increase year-over-year [1][9] - The earnings consensus remains steady at $1.67 per share, indicating a 7.7% increase from the previous year [2][9] Revenue and Earnings Performance - The anticipated revenue growth is supported by the company's shift towards a smoke-free product portfolio, which accounted for over 42% of gross profit in Q3 2025, driven by strong sales of IQOS, ZYN, and VEEV [3][9] - Smoke-free shipment volumes rose by 16.6%, and organic smoke-free revenues increased by 13.9%, indicating a favorable product mix and pricing strategy [4] Margin and Profitability - Pricing discipline and cost efficiencies have been significant contributors to margin expansion, with notable adjusted operating margin growth in Q3, supported by strong gross margins across both smoke-free and combustible categories [5] - Ongoing productivity initiatives and benefits from smoke-free growth are expected to continue supporting profitability, despite high commercial investments [5] Challenges and Headwinds - The company faces challenges from declining combustible cigarette volumes and foreign exchange volatility, with cigarette shipment volumes decreasing at a low-single-digit rate in Q3 [6] - These structural industry pressures are likely to persist into Q4, potentially impacting overall performance [6] Earnings Prediction Model - The current earnings prediction model does not indicate a strong likelihood of an earnings beat for Philip Morris, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [7]

Philip Morris International Inc. (NYSE:PM) is one of the best long term low volatility stocks to invest in. Philip Morris International Inc. (NYSE:PM) announced that its experts presented scientific evidence to the FDA’s Tobacco Products Scientific Advisory Committee on January 22 as part of the FDA’s process for a Modified Risk Tobacco Product designation for their ZYN nicotine pouch products. Management stated that the designation would allow Philip Morris International Inc.’s (NYSE:PM) U.S. family of bu ...

Core Insights - Philip Morris International Inc. (PM) is a leading global tobacco and nicotine company with a market cap of $279.3 billion, transitioning from traditional cigarettes to smoke-free alternatives like the IQOS heated tobacco system [1] Performance Summary - PM stock has outperformed the broader market over the past 52 weeks, surging 37.7% compared to the S&P 500 Index's 14.3% gain [2] - Year-to-date, PM shares are up 11.9%, while the S&P 500 has only increased by 1.4% [2] - PM stock has also outpaced the State Street Consumer Staples Select Sector SPDR Fund (XLP), which saw a 4.7% increase over the past 52 weeks [3] Dividend and Earnings Outlook - On December 22, PM shares rose by 1.8% following the announcement of a quarterly dividend of $1.47 per share [5] - For FY2025, analysts project PM's earnings per share (EPS) to grow by 14.3% year-over-year to $7.51, with a strong earnings surprise history [5] - The consensus rating among 14 analysts covering PM is a "Moderate Buy," consisting of eight "Strong Buy" ratings, two "Moderate Buys," and four "Holds" [5] Analyst Ratings and Price Targets - Recently, Jefferies analyst Edward Mundy downgraded PM from "Buy" to "Hold" and reduced the price target from $220 to $180 [7] - The mean price target of $183.33 suggests a potential upside of 2.2%, while the highest price target of $200 indicates an upside of 11.5% from the current price [7]

Market Performance - S&P 500 increased by 0.3% while Nasdaq decreased by 0.2% this week[1] - Small-cap stocks led the decline with Russell 2000 value down by 1.0% and Russell 2000 growth down by 3.1%[1] - Key sectors showing gains include telecommunications (+9.0%) and technology hardware (+4.6%) while software and services fell by 6.9%[1] Fund Flows - Estimated fund flow for S&P 500 components was -$84.1 million this week, a significant drop from +$5.6 million last week[2] - Major inflows were seen in technology hardware (+$40.3 million) and media and entertainment (+$39.5 million) while software and services experienced outflows of -$106.0 million[2] Earnings Forecast - S&P 500's forward 12-month EPS expectation increased by 0.8% this week, up from 0.2% last week[3] - Notable upward revisions were in technology hardware (+5.6%) and automotive (+3.2%) sectors, while energy saw a downward revision of -2.7%[3] Risk Factors - Economic fundamentals, international political uncertainties, U.S. fiscal policy, and Federal Reserve monetary policy present significant risks[3]

Market Performance - S&P 500 increased by 0.3% while Nasdaq decreased by 0.2% this week[1] - Small-cap stocks led the decline with Russell 2000 value down by 1.0% and Russell 2000 growth down by 3.1%[1] - 13 sectors saw gains, while 10 sectors experienced losses, with telecommunications leading at +9.0%[1] Fund Flows - Estimated fund flow for S&P 500 components was -$84.1 million this week, down from +$5.6 million last week[2] - Major inflows were seen in technology hardware (+$40.3 million) and media & entertainment (+$39.5 million)[2] - Significant outflows occurred in software & services (-$106.0 million) and healthcare equipment & services (-$57.7 million)[2] Earnings Forecast - S&P 500's forward 12-month EPS expectation increased by 0.8% this week, up from 0.2% last week[3] - 21 sectors had upward revisions, with technology hardware & equipment seeing the largest increase at +5.6%[3] - Energy sector saw a downward revision of -2.7%[3] Risks - Economic fundamentals, international political situations, U.S. fiscal policies, and Federal Reserve monetary policies present uncertainties[3]

Group 1: Institutional Investment Activity - National Pension Service increased its stake in Philip Morris International by 2.7% in Q3, owning 3,810,514 shares valued at $618,065,000 after acquiring an additional 98,450 shares [2] - WCM Investment Management LLC significantly raised its position by 24,968.0% in Q2, now holding 11,275,606 shares worth $2,041,223,000 after purchasing 11,230,626 shares [3] - Vanguard Group Inc. increased its holdings by 1.6% in Q2, owning 142,857,055 shares valued at $26,018,555,000 after acquiring 2,235,380 shares [3] - DZ BANK AG increased its stake by 69.0% in Q2, now owning 4,512,311 shares worth $821,826,000 after buying 1,842,754 shares [3] - Prudential Financial Inc. grew its position by 88.9% in Q2, now holding 2,138,118 shares valued at $389,415,000 after purchasing 1,006,014 shares [3] - Panagora Asset Management Inc. raised its stake by 142.2% in Q2, now owning 1,512,514 shares valued at $275,474,000 after buying 888,148 shares [3] - Institutional investors collectively own 78.63% of Philip Morris International's stock [3] Group 2: Analyst Ratings and Price Targets - Stifel Nicolaus set a price target of $180.00 for Philip Morris International [4] - Barclays lowered its target price from $220.00 to $180.00 while maintaining an "overweight" rating [4] - Wall Street Zen downgraded the stock from a "buy" to a "hold" rating [4] - Goldman Sachs reiterated a "buy" rating for the stock [4] - Weiss Ratings restated a "buy (b)" rating for Philip Morris International [4] - Eleven analysts rated the stock as a "Buy" and two as "Hold," with a consensus rating of "Moderate Buy" and an average target price of $184.56 [4] Group 3: Stock Performance and Financial Metrics - Philip Morris International's stock opened at $179.42, with a market cap of $279.29 billion [5] - The stock has a price-to-earnings ratio of 32.50, a PEG ratio of 1.92, and a beta of 0.40 [5] - The 12-month low for the stock is $128.25, and the 12-month high is $186.69 [5] - The company's 50-day moving average is $161.53, and the 200-day moving average is $161.56 [5] Group 4: Dividend Information - Philip Morris International announced a quarterly dividend of $1.47 per share, paid on January 14th [6] - The annualized dividend amounts to $5.88, resulting in a yield of 3.3% [6] - The dividend payout ratio is 106.52% [6] Group 5: Company Overview - Philip Morris International Inc. is a global tobacco company that manufactures and sells cigarettes and smoke-free alternatives [7] - The company was established as an independent entity following a separation from Altria in 2008 [7] - Philip Morris International focuses on international markets outside the United States [7] - The product mix includes traditional combustible cigarettes and smoke-free offerings such as heated tobacco systems [8]

Investment Activity - Berman McAleer LLC purchased 2,965 shares of Philip Morris International Inc. valued at approximately $481,000 in Q3 [2] - Legacy Investment Solutions LLC and Traub Capital Management LLC each acquired new stakes worth $25,000 in Q2 [3] - Marquette Asset Management LLC increased its holdings by 1,677.8% in Q3, now owning 160 shares valued at $26,000 after buying an additional 151 shares [3] - Briaud Financial Planning Inc raised its position by 266.7% in Q2, now owning 165 shares worth $30,000 after an additional purchase of 120 shares [3] - Institutional investors own 78.63% of the company's stock [3] Analyst Ratings - Wall Street Zen downgraded Philip Morris International from "buy" to "hold" [4] - Goldman Sachs Group maintained a "buy" rating with a target price of $175.00 [4] - Eleven analysts rated the stock as "Buy" and two as "Hold," with a consensus rating of "Moderate Buy" and an average price target of $184.56 [4] Stock Performance - Shares opened at $179.42, with a 52-week low of $128.25 and a high of $186.69 [5] - The market cap is $279.29 billion, with a PE ratio of 32.50 and a PEG ratio of 1.92 [5] Dividend Information - A quarterly dividend of $1.47 was declared, representing an annualized dividend of $5.88 and a yield of 3.3% [6] - The payout ratio is 106.52% [6] Company Overview - Philip Morris International Inc. is a global tobacco company focused on manufacturing and selling cigarettes and smoke-free alternatives [7] - The company has a product mix that includes traditional combustible cigarettes and reduced-risk products [8]

Core Insights - The tobacco sector is primarily represented by two industry leaders: Altria Group, Inc. and Philip Morris International Inc., each with distinct geographic focuses and strategies to adapt to the evolving nicotine landscape [1][2] Altria Group, Inc. (MO) - Altria focuses on the U.S. market, leveraging its Marlboro brand while expanding into smoke-free alternatives like NJOY and oral nicotine products [2] - In 2025, Altria achieved a 4.4% increase in adjusted earnings per share and returned approximately $8 billion to shareholders through dividends and share repurchases, highlighting its strong cash-flow generation [3] - The smokeable products segment generated over $11 billion in adjusted operating income with margins expanding to 63.4%, demonstrating Altria's pricing power despite a 9.5% decline in domestic cigarette volumes [4][6] - Altria's smoke-free strategy is advancing, with on! brand shipment volumes rising 10.9% in 2025, and plans for a national rollout of on! PLUS to capture growth in the nicotine pouch category [5] - The long-term investment outlook for Altria is challenged by structural and regulatory headwinds, with ongoing volume declines in traditional cigarettes [6] Philip Morris International Inc. (PM) - Philip Morris is transitioning towards smoke-free products, with smoke-free offerings accounting for 41% of total net revenues and 42% of gross profit in Q3 2025, driven by strong performance from IQOS, ZYN, and VEEV [7][8] - The company reported a record quarterly smoke-free gross profit of $3.1 billion, indicating a shift towards a more sustainable profit model [7] - Philip Morris' operational discipline and productivity initiatives have supported margin expansion and earnings growth, despite a 3.2% decline in cigarette shipment volumes in Q3 [10][11] - The reliance on smoke-free products introduces risks, as any slowdown in adoption could impact the ability to offset declines in combustible product volumes [11] Stock Performance and Valuation - Over the past year, Altria's shares increased by 15.9%, underperforming Philip Morris, which surged by 36.5%, and the industry's growth of 38.7% [12] - Altria's forward P/E ratio is 10.7, slightly below its one-year median, while Philip Morris' forward P/E ratio stands at 21.12, above its median [13] - Philip Morris is viewed as a more promising investment due to its diversified international presence and established portfolio of reduced-risk products, while Altria's growth is limited by its heavy exposure to the U.S. cigarette market [16][17]

Article contentPhilip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch and e-vapor products. Our smoke-free products are available for sale in over 100 markets, and as of June 30, 2025 PMI estimates the ...