10 Best Sin Stocks to Invest in 2025

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

Number of Hedge Fund Holders: 75

Philip Morris International Inc. (NYSE:PM) is an American multinational tobacco company that manufactures and offers cigarettes and smoke-free products in more than 180 markets around the world. PMI is one of the best sin stocks to invest in. The company’s portfolio of cigarette brands includes Marlboro, L&M, and Chesterfield. In 2022, Philip Morris International Inc. (NYSE:PM) acquired Swedish Match to create a strong global leader in smoke-free products, featuring the brands IQOS and ZYN.

Broyhill Asset Management, an investment advisor, noted in its Q3 2024 investor letter that the shares of Philip Morris International Inc. (NYSE:PM) surged by 21% in the third quarter of 2024. The investment management firm also pointed out that the company is focused on transitioning from combustible cigarettes to reduced-risk products. Broyhill Asset Management emphasized the growing popularity of Zyn, which has become very popular and is often out of stock despite increased production efforts by the company.

The company is strategically focused on growing its smoke-free business segment. In Q3 2024, Philip Morris International Inc. (NYSE:PM) reported that the shipment of smoke-free products reached nearly 40 billion units, with the products being available in 92 markets. In the third quarter of 2024, the smoke-free business made up 38% of the company’s total net revenues and 40% of its gross profit.

On January 16, Philip Morris International Inc. (NYSE:PM) announced that the US Food and Drug Administration (FDA) has authorized all ZYN nicotine pouches currently marketed by Swedish Match. This move makes ZYN the first and only authorized nicotine pouch in the US.

Overall, PM ranks first among the 10 best sin stocks to invest in 2025. While we acknowledge the potential of sin stocks, 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. 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 the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.