With a market cap of $253.7 billion, Philip Morris Worldwide Inc. (PM) is a world tobacco firm targeted on delivering a smoke-free future. Its product portfolio contains conventional cigarettes, smoke-free alternate options like IQOS and ZYN, and increasing choices in wellness and healthcare.
Shares of the Stamford, Connecticut-based firm have outperformed the broader market over the previous 52 weeks. PM inventory has surged 38.3% over this timeframe, whereas the broader S&P 500 Index ($SPX) has gained 18.4%. Furthermore, shares of Philip Morris are up 35.4% on a YTD foundation, in comparison with SPX’s 7.6% improve.
Narrowing the main focus, the tobacco large inventory has additionally outpaced the Shopper Staples Choose Sector SPDR Fund’s (XLP) 1.6% rise over the previous 52 weeks.
Regardless of reporting a better-than-expected Q2 2025 adjusted EPS of $1.91, shares of Philip Morris tumbled 8.4% on Jul. 22. Whole gross sales rose 7.1% to $10.1 billion and ZYN shipments got here in at 190 million cans, each lacking analysts’ estimates.
For the fiscal 12 months ending in December 2025, analysts anticipate PM’s adjusted EPS to develop 14.3% year-over-year to $7.51. The corporate’s earnings shock historical past is promising. It beat the consensus estimates within the final 4 quarters.
Among the many 14 analysts overlaying the inventory, the consensus score is a “Sturdy Purchase.” That’s based mostly on 9 “Sturdy Purchase” scores, two “Average Buys,” and three “Holds.”
On Jul. 14, UBS maintained its “Impartial” score on Philip Morris however raised its worth goal to $181, citing robust smoke-free margin progress pushed by IQOS and ZYN, with strong U.S. quantity projections and revised earnings estimates via 2027.
As of writing, the inventory is buying and selling beneath the imply worth goal of $193.38. The Avenue-high worth goal of $220 implies a possible upside of almost 35% from the present worth.
On the date of publication, Sohini Mondal didn’t have (both straight or not directly) positions in any of the securities talked about on this article. All info and information on this article is solely for informational functions. This text was initially revealed on Barchart.com