From Nasdaq: 2025-05-18 04:10:00

During the first quarter, billionaire investor Philippe Laffont added Philip Morris International (NYSE: PM) to his portfolio, diversifying from his tech-heavy holdings. He also made significant investments in other industries, like utility Constellation Energy and industrial giant Eaton.

Laffont’s interest in Philip Morris may stem from its growth potential, fueled by products like Zyn and Iqos. Zyn, a flavored nicotine pouch, saw a 53% surge in Q1 shipments to 202 million cans, with strong demand driving increased full-year guidance. Iqos, a heated tobacco product, also experienced growth internationally.

Philip Morris’ smokeless products, Zyn and Iqos, offer better unit economics than traditional cigarettes, contributing to higher profitability. The company’s international focus and strong pricing power have helped maintain growth in its traditional cigarette business while its smokeless portfolio drives additional expansion.

Philip Morris presents an attractive investment opportunity with its defensive nature, global manufacturing network, and favorable valuation metrics. Trading at a forward P/E ratio of under 23 times and PEG ratio of under 0.35, the stock offers potential upside. Investors can consider following Laffont’s lead and exploring opportunities in Philip Morris.

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Disclaimer: This article reflects the author’s opinions and does not necessarily align with Nasdaq’s views. Key figures and statistics from the news article have been summarized to provide a concise overview of the investment landscape.



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