Top 10 Stocks to Buy According to Lone Pine Capital

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

Number of Hedge Fund Holders as of Q4: 102

Lone Pine Capital’s Equity Stake: $778.47 Million 

On February 6, 2025, Philip Morris International Inc. (NYSE:PM) posted its financial results for the quarter ending December 2024, with net sales surging 7.3% year over year to $9.71 billion compared with estimates of $9.44 billion, thanks to strong growth from its products ZYN and IQOS. Moreover, earnings per share increased 14% year-over-year to $1.55 against analysts’ expectations of $1.50 per share. Additionally, the company declared a regular quarterly dividend of $1.35 per share, or an annualized $5.40 per share, reflecting its commitment to shareholder value. These results reinforce Philip Morris’ dominant position in the tobacco industry.

Philip Morris International Inc. (NYSE:PM) projected stronger-than-expected profit growth for 2025, driven by the rapid expansion of its nicotine pouch brand, ZYN, and increasing demand for smoke-free alternatives. The company’s shares surged nearly 10% following the announcement. As consumers seek alternatives to traditional cigarettes due to health concerns, PMI’s heated tobacco device, IQOS, and ZYN have gained significant traction. The U.S. Food and Drug Administration recently granted PMI authorization to market ZYN in the country, citing its lower levels of harmful substances compared to traditional tobacco products. Chief Financial Officer Emmanuel Babeau emphasized that all three business segments—ZYN, IQOS, and traditional cigarettes—will contribute to growth in 2025, bolstering both revenue and profitability.

Philip Morris International Inc. (NYSE:PM), which distributes Marlboro cigarettes globally, expects adjusted annual earnings per share between $7.04 and $7.17, surpassing analysts’ estimates of $7.03. The company also anticipates a significant rise in ZYN shipments to the U.S., its largest market, with an estimated increase of 34% to 41%, while IQOS shipments are expected to grow by 10% to 12%. Barclays analyst Gaurav Jain noted that PMI’s projections for profits, sales volume, and revenue exceeded expectations, reinforcing investor confidence. Historically, the company has been conservative in its forecasts early in the year, leading investors to speculate on potential upward revisions as the year progresses, contributing to the stock’s strong performance.