12 Best FMCG Stocks to Buy According to Billionaires

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

Number of Billionaire Investors: 22

Number of Hedge Fund Holders: 102

Philip Morris International Inc. (NYSE:PM) operates as a tobacco company. Bonnie Herzog, an analyst from Goldman Sachs, reiterated a “Buy” rating on the company’s stock. Notably, the associated price target stood at $165.00. The rating is backed by factors demonstrating its promising future. As per the analyst, Philip Morris International Inc. (NYSE:PM)’s leadership continues to exhibit healthy confidence in its ability to witness sustainable growth and provide shareholder returns, thanks to its commitment to a smoke-free transformation. The analyst went on to add that the transition is aided by a strong multi-category strategy that focuses on capturing a significant share of the growing global nicotine market.

Elsewhere, Eric Serotta from Morgan Stanley maintained a “Buy” rating on the company’s stock with a price objective of $156.00. The rating is backed by Philip Morris International Inc. (NYSE:PM)’s robust positioning in the broader smoke-free product market. As per the analyst, the company remains optimistic about the sustained growth of the smoke-free portfolio, which consists of products such as IQOS and ZYN. With respect to the smoke-free business (SFB), Q4 2024 shipments of HTU and oral smoke-free products surpassed 40 billion units for the first time, fueling Philip Morris International Inc. (NYSE:PM)’s smoke-free business to a superior performance, with full-year net revenues rising 14.2% and gross profit improving 18.7%.

Broyhill Asset Management, an investment advisor, released a Q3 2024 investor letter. Here is what the fund said:

“Shares of Philip Morris International Inc. (NYSE:PM) gained 21% in Q3. Philip Morris was by far the largest contributor for the quarter. Our core thesis focuses on the shift in business mix from combustible cigarettes towards reduced risk products as well as the company’s re-entry to the US market with its acquisition of Swedish Match. This year, Zyn has become wildly popular. So much so that the company can barely keep it in stock, even as it expands production. We recently discussed how youth usage of these products, a common critique of the company, remains under 2%, even as its overall popularity drives higher volume.”

While we acknowledge the potential of PM as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued 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 30 Best Stocks to Buy Now According to Billionaires.

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