Is Philip Morris International Inc. (PM) A Good Stock To Buy Now?

Ricardo Pillai

3 min read

Is PM a good stock to buy? We came across a bullish thesis on Philip Morris International Inc. on X.com by @MoneyShow. In this article, we will summarize the bulls’ thesis on PM. Philip Morris International Inc.’s share was trading at $164.20 as of April 24^th. PM’s trailing and forward P/E were 23.12 and 19.42 respectively according to Yahoo Finance.

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Philip Morris International is transitioning from a traditional tobacco company into a smoke-free-focused business, combining strong cash generation with evolving growth drivers. While it retains the characteristics of a mature, income-oriented stock, including a dividend yield near 4% and a 17-year track record of annual dividend increases since its 2008 spin-off, the company is increasingly supported by a structural shift toward reduced-risk products.

Adjusted EPS is expected to grow by around 14%, highlighting that the business is no longer purely defensive but also offers meaningful growth optionality. Smoke-free products, including IQOS heated tobacco and ZYN nicotine pouches, now contribute roughly 39% of total net revenues and continue to scale rapidly. The acquisition of Swedish Match in 2022 strengthened Philip Morris’s position in the U.S. through ZYN, which has experienced significant volume growth and dominates the oral nicotine pouch category.

A potential regulatory catalyst lies ahead, with the FDA set to review ZYN under the modified-risk framework in January 2026, which could further enhance its market positioning and profitability. At the same time, IQOS continues expanding globally, and the company’s regained U.S. commercialization rights open a large, previously untapped opportunity in the world’s biggest nicotine market.

Despite regulatory risks and execution challenges in shifting consumers to alternatives, the company’s transformation is already tangible and profitable. With resilient cash flows supporting its dividend and a growing smoke-free segment driving expansion, Philip Morris offers a compelling mix of income stability and long-term growth potential.

Previously, we covered a bullish thesis on Philip Morris International Inc. (PM) by Hidden Market Gems in April 2025, which highlighted the company’s macro resilience, pricing power, and tariff-proof, cash-generating tobacco business model. PM’s stock price has appreciated by approximately 8.16% since our coverage. @MoneyShow shares a similar view but emphasizes on its smoke-free transition, growth optionality, and regulatory-driven expansion catalysts.

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