So far, 2025 hasn't exactly been kind to investors. The S&P 500 is down 5.5% year-to-date, weighed down by mounting uncertainty, tariffs, fears of an economic slowdown, and concerns over stretched valuations, particularly in growth-oriented technology stocks.
Philip Morris's Zyn is experiencing explosive growth, with US shipments up 53% and international volumes up 182% year-over-year. PM beat earnings estimates last week and raised guidance after crushing analyst forecasts. The company is in the process of building a massive Zyn factory in Colorado to meet soaring demand, positioning itself for significant future earnings growth.
Philip Morris's stock surged over 41.50% in 2025, driven by the success of its innovative nicotine pouch product, Zyn, which received FDA marketing approval. British American Tobacco's VELO Plus, a Zyn competitor, offers synthetic nicotine, improved pouches, and competitive pricing, capturing 5.4% market share within 12 weeks of launch. BAT trades at a lower valuation compared to Philip Morris and Altria, with a P/E ratio of 9.34x and a 7.05% dividend yield, making it an attractive buy.
Philip Morris (PM) is well positioned to outperform the market, as it exhibits above-average growth in financials.
PM's first-quarter 2025 results reflect increased earnings and sales on robust momentum across all regions.
Philip Morris International Inc. today reported very strong results for the first quarter of 2025, sending PM shares to a new all-time high. At the same time, PM stock, now trading at twice the valuation of its closest peer, raises the question of whether the market has gotten ahead of itself. In this update, I review Philip Morris' latest results and answer the question of whether PM shares are overvalued or rightly trading in line with traditional consumer staples companies.
Shares of Philip Morris International (PM) set an all-time high Wednesday after the tobacco giant topped first-quarter estimates and lifted its full-year profit outlook.
While the top- and bottom-line numbers for Philip Morris (PM) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Philip Morris International Inc (NYSE:PM, ETR:4I1) has raised its earnings outlook for 2025 and delivered an earnings beat for the first quarter, sending its shares almost 3% higher on Wednesday. The multinational tobacco firm best known for its Marlboro cigarettes now expects adjusted earnings for the full year to be between $7.36 and $7.49 per share, representing growth of 12% to 14%, up from its previous forecast of $7.04 to $7.17 per share.
Philip Morris (PM) came out with quarterly earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.61 per share. This compares to earnings of $1.50 per share a year ago.
Philip Morris International gave its earnings outlook a bump after sustained momentum for its popular Zyn pouch brand powered its profit and revenue higher in the first quarter.
Philip Morris International Inc.'s shares have surged due to strong sales of smokeless products like Zyn, positioning the company well for potential recession resilience. The company's strategic shift to smokeless products now contributes 40% of revenue, driving growth alongside the steady legacy combustible business. Despite trading at a premium, Philip Morris' robust cash flows and dividend yield make PM shares a strong buy, especially in uncertain economic times.