Philip Morris Stock Trading Above 200 & 50-Day SMA: Should You Buy?

Core Viewpoint - Philip Morris International Inc. (PM) is experiencing strong upward momentum in its stock performance, driven by effective pricing strategies and a successful transition to smoke-free products, positioning the company favorably in the evolving tobacco industry [1][4][8]. Stock Performance - As of September 18, PM was trading at $120.96, above its 200-day simple moving average (SMA) of $99.21 and 50-day SMA of $117.16, indicating a sustained uptrend [1]. - PM shares have increased by 19.5% over the past three months, outperforming the industry growth of 18.9%, the Consumer Staples sector's increase of 8.4%, and the S&P 500 Index's rise of 2.6% [2]. Pricing Strategy - The company has maintained profitability despite declining cigarette shipment volumes through an effective pricing strategy, anticipating a 7-8% rise in combustible product pricing in 2024 [4]. Smoke-Free Transition - Smoke-free products accounted for 38.1% of PM's net revenues in Q2 2024, with a goal to derive over two-thirds of total revenues from these products by 2030 [5]. - Revenues from the smoke-free business rose 13.6% in Q2 2024, with organic growth at 18.3%, driven by strong performance in IQOS and increased shipments of ZYN [6]. Future Expectations - PM raised its full-year guidance for 2024, expecting net revenues to increase by 7.5-9% on an organic basis, with operating income projected to rise by 11-13% [7]. - Adjusted EPS for 2024 is anticipated to be in the range of $6.33-$6.45, reflecting a growth of 5.3-7.3% [7]. Investment Outlook - The company is positioned as a compelling investment opportunity due to its robust momentum, commitment to innovative smoke-free solutions, and proven profitability [8].