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

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 24th. 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.

Philip Morris International Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 82 hedge fund portfolios held PM at the end of the fourth quarter which was 90 in the previous quarter. While we acknowledge the risk and potential of PM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PM and that has 10,000% upside potential, check out our report about this cheapest AI stock.