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 marketreach, 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.
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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.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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