Shares of Philip Morris International (PM) are up 10% and trading at an all-time high after the tobacco giant reported strong quarterly financial results.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The strong earnings have pushed the Connecticut-based company’s stock to above $130, a new intraday record. The stock is posting its biggest one-day increase since 2020. Year-to-date, PM stock has now gained 44%.
While cigarettes continue to be a key product at Philip Morris, it was sales of the company’s Zyn oral nicotine pouches that led to the strong Q3 results and have the share price trending at all-time highs. The company reported that Zyn shipments rose nearly 40% in the first nine months of this year compared with the same period of 2023.
PM Stock Revival
The current rally is a reversal of fortune for PM stock. Between 2013 and 2023, Philip Morris stock barely budged, trading largely sideways for a decade. The company’s dividend yield of greater than 4% has long been the main attraction to the stock for investors.
But now, Philip Morris stock is having its best year on record and hitting new highs as sales of the Zyn nicotine pouch revive the company. Philip Morris’ cigarette business today largely focuses on international markets and foreign sales.
Is PM Stock a Buy?
Philip Morris has a consensus Strong Buy rating among eight Wall Street analysts. That rating is based on eight Buy recommendations issued in the last three months. There are no Hold or Sell ratings on the stock. The average PM price target of $135.88 implies 3.63% upside from current levels.
