Philip Morris International Inc. (PM): A Bull Case Theory

We came across a bullish thesis on Philip Morris International Inc. (PM) on Substack by Chit Chat Stocks. In this article, we will summarize the bulls’ thesis on PM. Philip Morris International Inc. (PM)’s share was trading at $119.80 as of Jan 16th. PM’s trailing and forward P/E were 19.02 and 17.24 respectively according to Yahoo Finance.

Philip Morris International (PM), the leading global nicotine company and owner of brands like Zyn and IQOS, represents a compelling long-term investment opportunity. Following a late-2024 drawdown, the stock now has a market cap of $184 billion and a strong, well-structured debt profile. With a clear path to achieving $20 billion in operating income within the next five years, PMI is positioned to deliver substantial value to shareholders. The company plans to return the majority of these earnings through dividends and share repurchases, underscoring its shareholder-friendly capital allocation strategy. This robust outlook makes it difficult for buy-and-hold investors to incur losses over a 10-year horizon, as PMI’s dominant market position and earnings potential provide a solid foundation for growth and stability. With its current valuation offering an attractive entry point, PMI presents a rare opportunity for investors seeking resilient, long-term returns in a globally significant industry.

Philip Morris International Inc. (PM) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held PM at the end of the third quarter which was 70 in the previous quarter. While we acknowledge the risk and potential of PM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. 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.

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Disclosure: None. This article was originally published at Insider Monkey.