14 Best 52-Week High Stocks to Buy According to Short Sellers

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

52 Week Range: $87.23 – $123.05

Current Share Price: $122.55

Short interest rate: 0.61%

Number of Hedge Fund Holders: 70

Philip Morris International Inc. (NYSE:PM) is a consumer defensive investment play that operates as a tobacco company. It strives to deliver a smoke-free future backed by a portfolio of products outside of the tobacco and nicotine sector. It is one of the stocks trading near its 52-week highs, signaling market confidence about its long-term prospects.

The company was on a roll in the second quarter, with both organic revenue and operating earnings hitting all-time highs. The firm’s products without tobacco, including IQOS and ZYN, have demonstrated considerable growth in regions such as Japan, Europe, and the U.S.

Even though challenges with the supply chain have impacted the ZYN product in the U.S. and delayed obtaining regulatory approval in Taiwan, the company has increased its projections for total revenue and operating earnings and adjusted diluted earnings per share for the full year.

During its second quarter, Philip Morris International Inc. (NYSE:PM) experienced robust expansion, with its organic revenue climbing 9.6% to $9.5 billion and adjusted earnings per share rising 10.6% to $1.77. The expansion within its smoke-free product lines was particularly noteworthy, with organic revenue surging by 18% and gross profit increasing by 22%. As the company’s focus shifts towards smoke-free offerings, it is expected to fuel further revenue growth.

Philip Morris International Inc. (NYSE:PM)’s shares have surged as the firm has excelled in shifting towards products without tobacco compared to competitors such as Altria and British American Tobacco. Approximately 40% of its income originates from advanced offerings such as Zen nicotine pouches and IOS heat-not-burn devices. Furthermore, it has secured the right to distribute its sticks in the U.S., creating a vast market for its tobacco-free products.

Philip Morris International Inc. (NYSE:PM) has revealed plans to invest $232 million to enlarge its manufacturing plant in Owensboro, Kentucky. This expansion, slated for completion by the second quarter of 2025, aims to meet the growing demand for its ZYN nicotine pouches. The investment also follows the company’s commitment to establish a new facility for nicotine pouch production in Aurora, Colorado.

Philip Morris International Inc. (NYSE:PM) appears to be trading at a discount, with a price-to-earnings multiple of 19, while offering a 4.24% dividend yield.

By the end of the second quarter, 70 of the 912 hedge funds tracked by Insider Monkey held shares in Philip Morris International Inc. (NYSE:PM). The largest shareholder was GQG Partners, managed by Rajiv Jain, with a $3.67 billion investment in the company.