Core Viewpoint - Philippe Laffont of Coatue Management has invested significantly in Philip Morris International, indicating the company's potential as a growth stock within the defensive tobacco industry [1][3][17] Investment Details - Laffont purchased over $220 million worth of Philip Morris stock in Q1, marking it as his fourth-largest purchase and second-largest new addition [3] - This investment is notable given Laffont's typical focus on technology stocks, which include major companies like Meta Platforms and Amazon [2] Growth Drivers - Philip Morris is experiencing growth through its smokeless products, particularly Zyn and Iqos, which are appealing alternatives to traditional tobacco [5][8] - Zyn's U.S. shipment volumes surged 53% to 202 million cans in Q1, prompting an increase in full-year shipment guidance to between 800 million and 840 million cans [7] - Iqos has also seen a nearly 12% increase in heated tobacco units (HTUs) to 37.1 billion units, with strong sales growth in Japan and Europe [9] Market Position - Philip Morris has successfully bought back Iqos' U.S. rights and is preparing for a broader rollout in the U.S. market, which could enhance growth without cannibalizing existing customers [10] - The company has managed to produce modest cigarette volume growth internationally, contrasting with the steep decline seen in the U.S. market [12][13] Financial Metrics - Zyn and Iqos have better unit economics compared to traditional cigarettes, with Zyn offering six times better product contribution levels and Iqos providing 2 to 2.5 times [11] - The stock is currently trading at a forward P/E ratio of under 23 and a PEG ratio of under 0.35, suggesting it is undervalued [15] Conclusion - Given its defensive nature, growth potential, and attractive valuation, Philip Morris is viewed as a favorable investment opportunity [14][17]

Group 1: Valuation and Market Position - Enterprise Products Partners LP (EPD) is currently trading at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 10.28x, which is below the industry average of 11.49x and significantly lower than midstream competitors like Kinder Morgan Inc. (KMI) at 14.18x and Enbridge Inc. (ENB) at 15.14x [1][2] Group 2: Business Resilience - EPD is largely immune to market uncertainties related to tariffs, as it has secured 85% to 90% of its LPG export capacity through long-term take-or-pay agreements with international counterparties, providing predictable revenue sources [3][4] - The company’s contracts are primarily with international trading companies, insulating it from geopolitical risks such as tariffs or sanctions, as traders can reroute barrels based on global demand [4] Group 3: Asset Portfolio and Growth Potential - EPD has a diversified asset portfolio with over 50,000 miles of pipelines and a storage capacity of 300 million barrels, which supports stable fee-based revenues from long-term contracts [5] - The company has a backlog of $7.6 billion in major capital projects, which will generate additional fee-based earnings and stable cash flows for unitholders [6] - EPD has achieved over two decades of distribution growth, with a current distribution yield of 6.7%, slightly above the industry average of 6.4% [7] Group 4: Operational Outlook - EPD connected more than 1,000 wells in the Permian Basin last year and plans to add a similar number this year, which will increase the volume of oil, natural gas, and natural gas liquids transported through its pipelines [15][16] - Even if oil production remains flat, the volume of natural gas and NGLs will continue to grow due to the byproducts from oil wells, generating incremental cash flows for the partnership [16] Group 5: Stock Performance - Over the past year, EPD's stock price has increased by 19%, outperforming the industry's composite stocks, which improved by 18.3% [17]

Group 1 - The stock market is currently experiencing volatility, which is expected to persist [1] - Stock prices referenced are from the afternoon of April 11, 2025, indicating a specific timeframe for the analysis [1] - The video discussing this volatility was published on April 13, 2025, suggesting timely insights into market conditions [1]