10 Best Low Risk Stocks To Buy in 2025

6. Philip Morris International Inc. (NYSE:PM)

Number of Hedge Fund Holders: 102

Equity Beta: 0.51x

Philip Morris International Inc. (NYSE:PM) is a global tobacco company that manufactures and sells cigarettes and smoke-free products outside the United States. Its leading brand, Marlboro, is one of the most recognized in the industry. The company is shifting towards reduced-risk alternatives, including its IQOS heated tobacco system and nicotine pouches, as part of its long-term strategy to transition away from traditional cigarettes. PM operates through a global distribution network, serving markets across Europe, Asia, Latin America, and the Middle East. A key strategic focus of the company is innovation and adaptation as its legacy tobacco business has been pressured by regulatory and other exogenous threats.

Philip Morris International Inc. (NYSE:PM) has achieved significant milestones in its smoke-free transformation, with smoke-free business now generating 40% of revenues and over 40% of gross profits. The company has expanded its smoke-free product presence to 100 markets, with the category approaching $15 billion in revenue and becoming self-financing through its own profitability. IQOS has surpassed Marlboro’s revenues, reaching over $11 billion in just 10 years compared to the 60-70 years it took Marlboro to reach that level. The company has successfully transitioned from volume declines to sustainable 2% volume growth since 2020, marking a significant shift in its business model.

In terms of financial performance, Philip Morris International Inc. (NYSE:PM) has lifted its revenue growth from 4-6% to 6-8% while maintaining strong pricing power and adding volume growth. The company’s smoke-free portfolio now demonstrates higher gross margins than the combustible business, with smoke-free margins almost 3 points higher than combustible products. Looking ahead, PM has set an aspirational target of achieving two-thirds of revenues from smoke-free products by 2030, with progress already evident as the top 5 operating income markets are at the 60% mark. With an equity beta of only 0.51x, PM is one of the best low risk stocks to buy now.