From Nasdaq: 2025-06-01 06:35:00

In 2025, the stock market has been turbulent, with the S&P 500 index remaining relatively flat. Philip Morris International (NYSE: PM) has seen a 50% total return, outperforming the index due to its focus on new-age nicotine products. The company’s revenue has increased to $38 billion over the last 12 months, with 42% coming from smoke-free products. Additionally, a weaker U.S. dollar is benefiting Philip Morris International’s revenue, as it operates primarily outside the U.S.

Despite the success of new nicotine products, traditional tobacco still plays a vital role in Philip Morris International’s business. With cigarette usage declining globally, the company’s revenue and earnings growth are supported by pricing power in international markets. While the stock’s valuation has increased, it still offers a 3% dividend yield and potential for long-term growth in both new and traditional nicotine products.

Investors may question whether Philip Morris International can sustain its strong performance. While the stock’s high returns may not be sustainable, it still presents a solid investment opportunity with potential for steady growth. The company’s focus on new-age nicotine products like Iqos and Zyn, combined with the enduring demand for traditional cigarettes, positions it for continued success in the market.



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