Latest news with #PhilipMorrisInternationalInc
Yahoo
4 days ago
- Business
- Yahoo
Philip Morris International Inc. (PM): A Bull Case Theory
We came across a bullish thesis on Philip Morris International Inc. (PM) on Librarian Capital's Substack. In this article, we will summarize the bulls' thesis on PM. Philip Morris International Inc. (PM)'s share was trading at $177.87 as of 29th May. PM's trailing and forward P/E were 28.02 and 23.75, respectively, according to Yahoo Finance. Pixabay/Public Domain Philip Morris (PM) demonstrated solid growth in Q1 2025, with revenues up 5.8%, EBIT up 12.8%, and EPS up 13.1%, driven notably by a 15% increase in U.S. ZYN consumer offtake volume and a 53% rise in shipments. The company raised its 2025 outlook, projecting adjusted EPS growth of 12-14% in dollar terms. Despite potential political risks, PM is viewed as largely 'Trump-proof' due to its diversified exposure and product portfolio. Trading at $170.24 with a ~23x P/E and a 3.2% dividend yield, PM offers an attractive total return potential of 57% (13.7% annualized) by the end of 2028. Having been a cornerstone of the 'Select 15' model portfolio since 2023 and a top-five holding since September 2023, PM has delivered strong long-term performance, with shares up 120% since the initial Buy rating in 2019. The company's structural growth and resilience to macroeconomic shocks, including new U.S. tariffs, underpin its investment appeal, making it a compelling buy with limited downside risk and strong upside potential. Previously, we have covered Philip Morris International Inc. (PM) in April 2025 wherein we summarized a by Hidden Market Gems on Substack. The author highlighted the company's resilience amid rising trade tensions and economic uncertainty. The author argued that PM's locally sourced supply, strong pricing power, and macro-proof product lineup made it an ideal investment in a volatile market environment. Since our last coverage, the stock is up 17.6% as of 29th May. Philip Morris International Inc. (PM) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 104 hedge fund portfolios held PM at the end of the first quarter which was 102 in the previous quarter. While we acknowledge the potential of PM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Kuwait Times
28-05-2025
- Business
- Kuwait Times
PMI's report details progress towards its smoke-free vision
DUBAI: Philip Morris International Inc recently published its sixth annual Integrated Report, marking the company's 10th year of business transformation and sustainability disclosures. The document details PMI's continued progress in delivering long-term value to shareholders and other stakeholders while advancing its purpose of having its smoke-free alternatives make cigarettes obsolete as soon as possible. 'Our 2024 Integrated Report celebrates a milestone year that marked the 10th anniversary of the commercialization of IQOS, VEEV and ZYN and our journey toward achieving one of the most ambitious business transformations in modern history,' said Jacek Olczak, Chief Executive Officer of PMI. 'By the end of 2024, our efforts to expand access to smoke-free products allowed us to reach 95 markets with an estimated 38.6 million adult users, demonstrating our deep commitment to sustainability and business transformation. These achievements fill me with profound optimism as we continue to create long-term value while addressing our product and operational impacts, not only sustaining but accelerating our momentum, accomplishing a number of goals that only a few years ago seemed too ambitious.' The Integrated Report describes the company's strategy, business model, and both product-related ('what' the Company produces) and operational-related ('how' the Company operates) performance. The report explains the Company's performance and approach to sustainability in the context of a comprehensive five-pillar framework that includes compliance and risk mitigation as well as operational efficiency, innovation, and purposeful impact. It emphasizes how regulatory compliance serves as the foundation while risk management ensures business resilience. It highlights how this approach streamlines processes for enhanced productivity and profitability, aligns sustainability with long-term business goals to drive innovation and competitive value, and ultimately aims to lead a significant industry transformation by influencing standards, shaping policy, and driving systemic change that redefines market expectations. 'The path to transformation is rarely linear, and our experience in 2024 reinforces a crucial truth: Achieving a smoke-free future requires collective effort beyond our direct control. Our smoke-free business accounted for approximately 39 percent of PMI's total net revenues for the full year 2024, with an acceleration in top- and bottom-line growth. Competing in the cigarette market while simultaneously working to transform it is not a contradiction but a necessary phase in our journey,' said Emmanuel Babeau, Chief Financial Officer of PMI. 'Our integrated approach—linking financial success with positive impact—positions us well to continue investing in the future. We remain confident that our financial strength, combined with our sustainability leadership, is the right path forward.' Product and Operational Impact: Performance Highlights * Six markets where more than 75% of net revenues are generated from smoke-free. * Over $14 billion cumulative investment behind smoke-free products since 2008 (2023: $12.5) * 99% of total shipment volume covered by youth access prevention programs in indirect retail channels (2023: 98%) * 99% of contracted farmers supplying tobacco to PMI who make a living income (2023: 96%) * 10 human rights impact assessments completed since 2018 in highest-risk countries (2023: 8) * 61% of PMI manufacturing facilities certified as carbon neutral (2023: 43%) * First pre-certified environmental product declarations (EPD) published on IQOS ILUMA i series of devices 'We understand the importance of setting ambitious yet realistic targets that drive our business success. Our Sustainability Index has proven instrumental in ensuring our ambitions are balanced and our metrics are objective, while our enhanced nonfinancial data governance helps us report with precision and consistency,' said Jennifer Motles, Chief Sustainability Officer of PMI. 'Our commitment to sustainability is inseparable from future-proofing our business, creating tangible impacts within our control and sphere of influence, and contributing to a transformation that extends beyond our company.' The Integrated Report 2024 has been prepared with reference to the Global Reporting Initiative (GRI) Universal Standards (2021) and relevant topic-specific standards. The report takes into account guidance from the International Sustainability Standards Board (ISSB) of the IFRS Foundation, including using its SASB Standards, Integrated Thinking Principles, and Integrated Reporting Framework. PMI's SASB Index and GRI Index, which also maps the principles and standards of the UN Global Compact (UNGC), is available on The report is accompanied by the PMI Sustainability KPI Protocol 2024, which provides a transparent explanation of how we define and measure progress for each Sustainability Index KPI. Please visit to learn more and read the full Integrated Report 2024, as well as case studies and market stories and the Sustainability KPI Protocol 2024.
Yahoo
23-05-2025
- Business
- Yahoo
Consumer Sentiment Hits New Low: 3 Consumer Staple Stocks to Buy
Volatility returned to Wall Street this week after markets showed signs of recovery earlier this month. The ongoing volatility is being triggered by tariff fears that could push the economy into a recession, while high inflation has continued to weigh on consumer sentiment. Consumer sentiment fell for the fifth straight month in May, reaching one of its lowest points on fears of an economic slowdown. With the Federal Reserve unlikely to implement interest rate cuts in the near term, the stock market may continue to remain volatile for a longer period. Given the uncertainty, it may be a wise decision to focus on safe-haven stocks such as consumer staples. In this regard, Philip Morris International Inc. PM, Nomad Foods Limited NOMD and Zevia PBC ZVIA appear to be attractive options. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Also, these stocks are from the low-beta category (beta greater than 0 but less than 1). Hence, the recommended approach is to invest in low-beta stocks with a high dividend yield and a favorable Zacks Rank. The University of Michigan's preliminary consumer sentiment index dropped to 50.8 in May, declining 2.7% from April. This is the second-lowest level recorded in the survey's 75-year history, with the lowest point coming in June 2022 when inflation peaked to a four-decade high. Since January, consumer sentiment has declined by nearly 30%. At the same time, short-term inflation expectations have worsened, with the projected 12-month inflation outlook rising to 7.3% in May from 6.5% in the prior month. The five-year inflation outlook also increased slightly, climbing to 4.6% from 4.4%. The Federal Reserve halted interest rate cuts in January due to renewed signs of inflation rising. Prior to that, the Fed had lowered rates by 100 basis points, as inflation eased significantly following a period of aggressive monetary tightening. Recently, inflation has shown signs of easing again — the consumer price index rose by only 0.2% in April compared to the previous month and was up 2.3% year over year, the smallest annual increase since February 2021. Even though inflation appears to be on track to meet the Fed's 2% target, the central bank remains cautious. It is unlikely to resume rate cuts until officials are certain inflation is on a clear downward path. Several investors still expect the Fed to make at least two rate cuts of 25 basis points each this year, though the first one likely won't come before September. President Donald Trump announced sweeping tariffs in April on all U.S. trading partners, sparking concerns about a potential global trade war that could drag the economy into a recession. The announcement triggered a sharp sell-off in the financial markets. However, the situation has since calmed down, and the markets have recently seen a rebound following Trump's decision to temporarily halt tariffs for most countries. Just last week, the Trump administration announced a 90-day trade truce with China, the United States' largest trading partner, effectively delaying additional tariffs. The United States had initially slapped tariffs of up to 145% on Chinese goods, prompting China to retaliate with 125% tariffs on American products. While negotiations between the two nations are ongoing, the final outcome of a potential trade deal remains unclear. Consumers are unsure how the tariffs will ultimately be structured and what impact they will have on the economy. This uncertainty has been weighing heavily on consumer sentiment in recent weeks. Philip Morris International Inc. is progressing well with its business transformation in the face of consumers' rising health consciousness and stern regulations to dissuade smoking. To this end, PM has been expanding its reduced risk products (RRPs) or smoke-free products category, as evident from the success of IQOS (a heating tobacco device) that counts among one of the leading RRPs in the industry. Philip Morris International has an expected earnings growth rate of 13.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.6% over the past 60 days. PM currently carries a Zacks Rank #2. Philip Morris International has a beta of 0.50 and a current dividend yield of 3.09%. Nomad Foods Limited manufactures and distributes frozen foods primarily in the United Kingdom, Italy, Germany, Sweden, France and Norway. NOMD's portfolio of frozen food brands includes Birds Eye, Iglo and Findus. Nomad Foods Ltd. is headquartered in Feltham, the United Kingdom. Nomad Foods has an expected earnings growth rate of 7.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4% over the last 60 days. NOMD presently sports a Zacks Rank #1. Nomad Foods has a beta of 0.81 and a current dividend yield of 3.80%. Zevia PBC is focused on addressing health challenges resulting from excess sugar consumption by offering a portfolio of zero-sugar, zero-calorie, naturally sweetened beverages. Nomad Foods has an expected earnings growth rate of 38.7% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 20.8% over the last 60 days. ZVIA presently has a Zacks Rank #2. Zevia has a beta of 0.76. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Philip Morris International Inc. (PM) : Free Stock Analysis Report Nomad Foods Limited (NOMD) : Free Stock Analysis Report Zevia PBC (ZVIA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
03-05-2025
- Business
- Yahoo
Philip Morris International (PM): Jim Cramer Believes There's No Other Like It – 'The Number One Story of All Time Is the Breakup of Phillip Morris'
We recently published a list of . In this article, we are going to take a look at where Philip Morris International Inc. (NYSE:PM) stands against other stocks that Jim Cramer discussed. In his recent appearance on CNBC's Squawk on the Street, Jim Cramer discussed the impact of markets extending their rally after President Trump's remarks suggested that his administration was de-escalating its showdown with China. To further assuage market concerns, Trump also asserted that he had no plans to fire Federal Reserve Chairman Jerome Powell. Cramer remarked: 'Well I think that if you go back to Monday's stock market, that was one of the worst days in my career that I've ever seen. I had that comparisons to 1932, a lot of people just saying let's just forget about this, let's turn it off, I don't want to be in this anymore. David, there seemed to me on Monday to be a belief that we're really on our own, do whatever you want, tariff away, we don't need anybody, interest rates going the wrong way, gold going the wrong way. It was just a hideous day.' Given that Cramer has interacted with the markets in one form or the other before most of us were born, naturally his remarks about Monday being the worst of his career raised eyebrows. Co-host David Faber refused to believe it and asked Cramer whether he really did think that it was the all-time worst day. In response, Cramer clarified that it was the worst day in terms of despair. 'No, because in terms of despair. Despair. Level of despair. . .Just saying the level of despair on Monday when I left,' he said. Cramer also outlined that those who had predicted that a bear market was in play were proven wrong. 'Everyone said bear market rally yesterday, well you know those people have been pantsed,' he said. 'There was a guy on this morning . .was talking about tariffs, you know I was really hammered. I said jeez you know it's early in the morning,' Cramer added. However, even though the bears were 'pantsed,' it didn't mean that the performance was stellar. Commenting on JPMorgan calling recent market events a wholesale divorce from dollar-denominated assets, Cramer outlined: 'I felt like I could go very easily into pretty much any market in the world and be better than ours.' The CNBC host also shared that Treasury Secretary Bessent appears to be driving the policy, as for now. According to him: 'I think that Bessent, Treasury Secretary Bessent, is regarded as being at the tiller, right now. And he understands the stock market. And there's, Navarro, who understands death by China.' Commenting on the link between Bessent and President Trump, Cramer shared: 'Look obviously he [Bessent] just knows there's some connection between the stock market and the country. And I know that the President, first go around, regarded as being really important. In the second go around he's just said basically it's an abstraction even to the point where I can do tariffs higher than Smoot-Hawley and not care what happens.' To make our list of the stocks that Jim Cramer talked about, we listed down the stocks he mentioned during CNBC's Squawk on the Street aired on April 23rd. For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders In Q4 2024: 102 Philip Morris International Inc. (NYSE:PM) is one of the biggest tobacco companies in the world. As stocks were sold during the tariff selloff earlier this month, Cramer wistfully pointed at the demand inflexibility of the firm's products. Philip Morris International Inc. (NYSE:PM)'s shares are up by 40% year-to-date, which reflects the somewhat defensive nature of the stock. Here are Cramer's latest thoughts about Philip Morris International Inc. (NYSE:PM): 'Jeez I think Phillip Morris if they didn't sell what they sell, by the way, you know that's the number one story of all time is the breakup of Phillip Morris. It's more than all the other stocks. Yes, in the last ten years it's NVIDIA. But the longest CAGR is Phillip Morris. . .' Overall, PM ranks 3rd on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of PM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
02-05-2025
- Business
- Yahoo
Is Philip Morris International Inc. (PM) the Best Tobacco and Cigarette Stock to Buy Now?
We recently compiled a list of the 10 Best Tobacco and Cigarette Stocks to Buy Now. In this article, we are going to take a look at where Philip Morris International Inc. (NYSE:PM) stands against the other Tobacco and Cigarette stocks. Cigarette and tobacco stocks are companies that produce and sell cigars, snuff, chewing tobacco, cigarettes, e-cigarettes, and all other tobacco products. The tobacco industry has long been a huge winner for investors. Tobacco companies were among the top performers during the 20th century because of their reputation for providing investors with substantial dividend yields as well as their addictive, extremely profitable, and recession-proof product. However, tobacco firms now confront a different set of challenges. Globally, smoking rates have been progressively declining, particularly in the United States, as a result of growing legislation and health concerns. The industry has attempted to shift to next-generation products as a result. Some people believe that e-cigarettes, vaporizers, and chewable nicotine pouches are healthier options since they avoid some of the negative aspects of smoking cigarettes, such as unpleasant odors. Some companies are expanding beyond tobacco, working with cannabis businesses to capitalize on the potential development in a market that shares numerous similarities with tobacco. There are other hazards associated with tobacco stocks, such as heightened regulation and a decline in smoking rates. According to the Centers for Disease Control and Prevention, the number of tobacco farms in the United States decreased from 93,530 in 1997 to roughly 3,000 in 2022. Nonetheless, the USA was the world's fifth-largest producer of tobacco in 2021, harvesting 431.6 million pounds in 2022, compared to 1.74 billion pounds in 1997. Seventy-seven percent of U.S. production came from North Carolina or Kentucky. Price reductions accounted for $5.7 billion (72%) of the $8.6 billion tobacco businesses spent on advertising in 2022, which included $572.7 million for smokeless tobacco and $8.01 billion for cigarettes. Marketing costs for e-cigarettes came to $859.4 million in 2021. Sales of cigarette packs fell from 12.5 billion to 9.1 billion packs between 2015 and 2021, a 27% decrease. In 2024, the average cigarette tax in each state was $1.93, while the federal tax was $1.01. Despite the industry's weak revenue and profit development, investors continue to be drawn to these stocks due to their consistent dividends, profitability, and solid profit margins. Investors believe that stronger growth will eventually be catalyzed by next-generation products. However, on April 2, 2025, the U.S. Supreme Court upheld the FDA's decision to deny approval for flavored e-cigarettes in a major decision. According to Justice Samuel Alito, vape producers were given 'adequate notice' of the FDA's review criteria. In this case, businesses like Vapetasia and Triton Distribution applied for certification for products such as 'Mother's Milk and Cookies' and 'Killer Kustard Blueberry.' The FDA has been regulating vaping products since 2016, claiming that flavored vapes represent a health concern and may encourage young people to use tobacco. More than 2.1 million youths in the US reported using e-cigarettes in 2023, with 10% of high school students vaping. The FDA has rejected thousands of flavored products and has only approved tobacco and menthol flavors. One specific issue, marketing plan consideration, was returned to lower courts after the Supreme Court reversed the 5th Circuit's prior criticism of the FDA's changing criteria. Companies that promote unapproved products risk 'civil and criminal penalties,' the FDA warned. A man exhaling smoke from a cigarette indicating the use of tobacco products. For this article, we sifted through the online rankings to form an initial list of the 15 Tobacco and Cigarette Stocks. We have also included e-cigarette and cannabis companies. From the resultant dataset, we chose 10 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 1009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock's market cap as of April 25, 2025, as a tie-breaker in case two or more stocks have the same number of hedge funds invested. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). Number of Hedge Fund Holders: 102 With sales of cigarettes in almost 170 countries, Philip Morris International Inc. (NYSE:PM) is one of the biggest tobacco firms in the world. The company aims to replace its cigarette sales with lower-risk alternatives despite its supremacy. Although its target of two-thirds of sales by 2030 seems ambitious, as of 2024, almost 40% of revenue came from smoke-free items. By 2029, Morningstar analysts anticipate that this percentage will have increased to about 50%. This does not indicate that analysts expect PMI to underperform in reduced-risk, but rather the consistent and significant contributions from traditional smokeable items. The stock grew by more than 39% YTD, making it the Best Tobacco Stock. The smoke-free products of Philip Morris International Inc. (NYSE:PM) were sold in 95 markets as of December 31, 2024, and 38.6 million adults globally were estimated to be using them. The smoke-free division of the company generated 42% of its total net revenues in the first quarter of 2025. Despite the secular drop in smoking worldwide, combustibles expanded 4%, while smoke-free grew 20% organically. The investment management company, Andvari Associates, published its investor letter for the first quarter of 2025. The fund said as follows: 'Last year, Andvari made its first investments in tobacco companies with the purchase of Philip Morris International Inc. (NYSE:PM) and Altria. At the time of our purchase, Philip Morris and Altria had underperformed the S&P 500 over the prior 5- and 10-year periods. Both traded at low valuations and with high dividend yields. But thanks to following the industry on and off for 10+ years, and thanks to many discussions with long-time shareholders of the companies, Andvari felt the time was right to make the plunge. The timing could not have been much better for us, as both companies have so far contributed positively to Andvari's recent overall performance. Overall, PM ranks 1st on our list of the 10 Best Tobacco and Cigarette Stocks to Buy Now. While we acknowledge the potential of Tobacco and Cigarette companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than PM but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
