Philip Morris International Inc. (PM), with a market capitalization of $238.7 billion, is a global leader in the tobacco industry, focused on advancing a smoke-free future and expanding beyond traditional tobacco and nicotine products. Headquartered in Stamford, Connecticut, the company offers a diverse portfolio of smoke-free alternatives, including heat-not-burn devices, vapor systems, and oral nicotine products, under brands like IQOS and ZYN.
Companies worth over $200 billion are generally described as “mega-cap” stocks, and Philip Morris International fits this criterion perfectly. It benefits from a strong brand portfolio, global market reach, and leadership in smoke-free alternatives like IQOS and ZYN. Its pricing power, heavy R&D investment, and regulatory adaptability drive innovation and market dominance. With resilient financial performance and a focus on reduced-risk products, PM is well-positioned for long-term growth.
The tobacco giant has declined 5.4% from its 52-week high of $159.51, recorded recently on March 3. Shares of PM have gained 15.6% over the past three months, outpacing the broader Dow Jones Industrial Average’s ($DOWI) 4.1% fall during the same time frame.
Over the past six months, PM shares surged 20%, outperforming DOWI’s 6.1% gain. Moreover, shares of PM have gained a whopping 65% over the past 52 weeks, compared to DOWI’s 10.3% rally in the same time frame.
PM has been trading above its 200-day moving average since late-April, and over its 50-day moving average since mid-January, indicating a bullish trend.
On Feb. 6, Philip Morris released its Q4 earnings, and its shares jumped 11%. It reported net revenues of $9.7 billion, marking a 7.3% increase year-over-year. The company's smoke-free products segment saw a 9.2% rise in net revenues, now comprising 40% of total net revenues.
PM has outperformed its key rival Altria Group, Inc. (MO), which rose 39.1% over the past 52 weeks and 7.6% in the past six months.
Nevertheless, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 12 analysts in coverage. PM currently trades above its mean price target of $150.60.
