Stamford, Connecticut-based Philip Morris International Inc. (PM) is a leading global tobacco company, known for its iconic brand Marlboro. It aims to become a majority smoke-free company by 2030, investing over $12.5 billion in developing and commercializing alternative products since 2008. With a market cap of $203.1 billion, Philip Morris has a presence in over 180 countries.
The tobacco giant has substantially outperformed the broader market over the past year. Philip Morris’ stock prices have surged 38.9% on a YTD basis and 46.8% over the past 52 weeks compared to the S&P 500 Index’s ($SPX) 20.1% gains in 2024 and 35.2% returns over the past year.
Narrowing the focus, Philip Morris has also outpaced the Consumer Staples Select Sector SPDR Fund’s (XLP) 11.3% gains on a YTD basis and 18.2% returns over the past 52 weeks.
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, exceeding analysts’ estimates by 4.4%.
Observing the company’s year-to-date performance Philip Morris raised its full-year adjusted EPS guidance, further bolstering investors’ confidence.
For the current fiscal, ending in December, analysts expect Philip Morris to report 8.3% year-over-year growth in adjusted EPS, reaching $6.51. The company’s earnings surprise history has been mixed. It has surpassed Wall Street’s earnings estimates thrice over the past four quarters while missing on one other occasion.
PM stock has a consensus “Moderate Buy” rating overall. Among the 11 analysts covering the stock, seven recommend a “Strong Buy,” three advise a “Hold,” and one suggests a “Strong Sell” rating.
This configuration is less bullish than two months ago, with eight analysts suggesting a “Strong Buy.”
On Oct. 30, Barclays PLC (BCS) analyst Gaurav Jain reiterated the firm’s “Overweight” rating while raising the price target to $155.
The mean price target of $135.44 suggests a potential upside of 3.7% from current price levels.
On the date of publication, Aditya Sarawgi 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.
