Valued at a market cap of $202.9 billion, Philip Morris International Inc. (PM) is a leading global tobacco company committed to delivering a smoke-free future and diversifying its portfolio beyond tobacco and nicotine products. Based in Stamford, Connecticut, the company offers a range of smoke-free products, including heat-not-burn devices, vapor systems, and oral nicotine solutions 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. Its portfolio includes traditional cigarettes, consumer accessories such as lighters and matches, as well as wellness and healthcare products. Founded in 1987, Philip Morris International is driving innovation to transform its business and contribute to long-term sustainability.
Despite this, the tobacco giant declined 1.3% from its 52-week high of $134.15, recorded on Oct. 31. Shares of PM have gained 5.7% over the past three months, lagging behind the broader Nasdaq Composite’s ($NASX) 15.2% return over the same time frame.
However, in the longer term, PM stock is up 40.7% on a YTD basis, outperforming NASX’s 31.4% gain. Moreover, shares of PM have gained 43.1% over the past 52 weeks, compared to NASX’s 38.7% return over the same time frame.
PM has been trading above its 200-day and 50-day moving average since late-April, indicating a bullish trend.
Shares of Philip Morris International surged 10.5% on Oct. 22, driven by a stellar Q3 2024 performance that exceeded expectations, with adjusted EPS rising 14.4% to $1.91, beating the consensus estimate. Net revenues grew 8.4% to $9.9 billion, surpassing estimates, fueled by a 41.4% increase in ZYN shipments, strong IQOS sales, and resilience in combustible products. Additionally, the company raised its 2024 adjusted EPS guidance to $6.45-$6.51, reflecting increased confidence in organic revenue growth.
PM has outperformed its rival Altria Group, Inc. (MO), which rose 34.7% over the past 52 weeks. But, Philip Morris International has slightly lagged behind MO’s 42.2% on a YTD basis.
Despite PM’s outperformance relative to the Nasdaq over the past year, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 11 analysts in coverage, and as of writing, PM is trading below the mean price target of $135.44.
