Billionaire Daniel Sundheim’s Top 15 Stock Picks Heading Into 2025

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

D1 Capital Partners’ Equity Stake: $399.03 Million

Number of Hedge Fund Holders as of Q3 2024: 75

Philip Morris International Inc. (NYSE:PM) is a tobacco company that delivers a smoke-free future through products outside the tobacco and nicotine sector. Its product portfolio consists of cigarettes and smoke-free products, including heat-not-burn, vapour, and oral nicotine products. Its stock has climbed to an all-time high, affirming why it is one of billionaire Daniel Sundheim’s top 15 stock picks heading into 2025.

The 32% year-to-date gain comes from Philip Morris International Inc. (NYSE:PM) delivering better-than-expected results and raising its full-year outlook amid strong demand for non-cigarette products. The maker of Marlboro cigarettes and Zyn nicotine pouches reported third-quarter adjusted earnings per share (EPS) of $1.91 on October 22, 2024. Revenues grew 6.7% from a year ago to $2.96 billion. Philip Morris expects its full-year adjusted diluted EPS of $6.45 to $6.51, up from its previous outlook of $6.33 to $6.45.

Philip Morris International Inc.’s (NYSE:PM) oral product shipments increased by almost 40% in the first nine months of 2024 compared to the same period the previous year. The increase was due to strong Zyn demand in the United States. Reducing the product’s supply constraints has contributed to some of that growth.

Zyn has emerged as a symbol of the transition towards alternatives away from traditional cigarettes. Consequently, it is expected to generate significant long-term value. Philip Morris International Inc. (NYSE:PM) announced earlier this year that it would invest $600 million to build a new production facility for Zyn in Colorado to take advantage of the soaring demand.