Stamford Connecticut-based Philip Morris International Inc. (PM) is a leading global tobacco company, known for its iconic brand Marlboro. However, it aims to become a majority smoke-free company by 2030, investing over $12.5 billion in developing and commercializing alternatives products since 2008. With a market cap of $202.7 billion, Philip Morris has a presence in over 180 countries across the globe.
The tobacco giant has significantly outperformed the broader market over the past year. Philip Morris’ stock prices have surged 40.2% over the past 52-week period and 8.3% on a YTD basis, outpacing the S&P 500 Index’s ($SPX) 21.8% surge over the past year and 2.7% gains in 2025.
Zooming in further, Philip Morris has also outperformed the Consumer Staples Select Sector SPDR Fund’s (XLP) modest 6% gains over the past year and a marginal 1 basis point gain in 2025.
Philip Morris has continued to observe a strong momentum across all regions and categories leading to a robust growth in revenues and earnings in Q3 2024 which led to its stock prices soaring 10.5% after the release of its Q3 results on Oct. 22. The company reported an impressive 8.4% year-over-year growth in net revenues, reaching $9.9 billion, exceeding Wall Street’s topline estimates by a notable 3.6%. The company has been experiencing favorable pricing and rising demand for its smoke-free products. This has also resulted in record-high earnings with its adjusted EPS rising 14.4% year-over-year to $1.91 and exceeding analysts’ estimates by 4.4%.
Observing the solid business momentum Philip Morris raised its full-year adjusted EPS guidance, further bolstering investors’ confidence.
PM is set to announce its fiscal 2024 earnings tomorrow. Analysts expect PM to deliver an 8.2% year-over-year growth in earnings to $6.50 per share. However, the company has a mixed earnings surprise history. While it has surpassed the Street’s bottom-line estimates thrice over the past four quarters, it has missed the estimates on one other occasion.
PM stock has a consensus “Moderate Buy” rating overall. Among the 12 analysts covering the stock, seven recommend “Strong Buy,” one advocates “Moderate Buy,” three advise “Hold,” and one suggests a “Strong Sell” rating.
This configuration has been mostly stable over the past months.
On Jan. 31, Barclays’ (BCS) analyst Gaurav Jain reiterated a “Buy” rating on PM while setting a price target of $145.
PM’ mean price target of $134.90 represents a modest 3.5% premium to current price levels. While its street-high target of $150 suggests a 15% upside potential.
