Why These 15 Defensive Stocks Are Surging In 2025

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5. Philip Morris International Inc (NYSE:PM)

Number of Hedge Fund Holders In Q4 2024: 102

Philip Morris International Inc (NYSE:PM) is a tobacco company that sells cigarettes and smoke-free products.

The stock is up significantly so far in 2025 as the company is successfully pivoting to smoke-free products. These products now account for 40% of revenue and over 40% of gross profits.

This includes a 7.3% revenue increase to $9.7 billion in Q4 2024 and a 14% earnings per share growth. Demand for ZYN nicotine pouches and IQOS heated tobacco gadgets are raking in serious cash, with ZYN boasting solid margins.

On top of that, the company’s killing it with strong pricing power and volume growth, even in a tricky global market. Their latest earnings showed a juicy 9.3% bump in adjusted diluted EPS for 2024, and they’re projecting more growth in 2025. Investors love the steady $1.35 quarterly dividend too.

The FDA has also greenlit ZYN in the U.S.

The consensus price target of $144.56 implies 6% downside.

PM stock is up 27.83% year-to-date.

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