8 Best Consumer Staples Stocks To Buy Right Now

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

Number of Hedge Fund Investors: 70

Philip Morris International Inc. (NYSE:PM) is a global tobacco company best known for its Marlboro brand. The company operates in more than 180 countries and is taking steps to reduce the harmful effects of smoking through innovation and regulation. Philip Morris International Inc. (NYSE:PM) is focused on transforming the tobacco industry by shifting towards reduced-risk products such as IQOS, a heated tobacco system that emits on average 95% fewer harmful chemicals compared with cigarettes.

On October 22, for the fiscal third quarter of 2024, Philip Morris International Inc. (NYSE:PM) reported record net revenues and earnings per share. The company’s smoke-free business continues to drive growth, with net revenues increasing by 14.2% and gross profit up by 15.9%. As a result, Philip Morris International Inc. (NYSE:PM) has raised its full-year growth outlook for adjusted diluted EPS to a range of 14% to 15%.

The company’s smoke-free business is a key driver of growth, with shipments of smoke-free products reaching 40 billion units in 92 markets in the third quarter. This segment now accounts for 38% of total net revenues and 40% of gross profit, demonstrating the significant impact it has on the company’s overall performance.

IQOS, the company’s heat-not-burn product, continues to gain traction, with adjusted in-market sales volume up by an estimated 14.8%. This product has strengthened Philip Morris International Inc.’s (NYSE:PM) position as the second-largest nicotine brand in markets where it is present, driving the growth of the heat-not-burn category.

Philip Morris International Inc.’s (NYSE:PM) oral smoke-free products, including ZYN nicotine pouches, have also seen significant growth, with shipment volume increasing by 24.7% in cans and 22.2% in pouches or pouch equivalents. In the US,  ZYN shipments reached 149.1 million cans, representing a growth of 41.4% compared to the previous year.