Philip Morris International Inc. Stock Outperforms Competitors Despite Losses on the Day

Philip Morris International Inc. (PM) stock has been on a roll, outperforming its competitors despite a slight dip on the day. The company's strategic shift towards smoke-free products and strong financial performance have contributed to its stock's resilience. Here's a closer look at PM's recent performance and the factors driving its stock's outperformance.



PM's stock price has been on an upward trajectory, with a year-to-date (YTD) return of 28% as of January 7, 2025. This strong performance can be attributed to the company's successful pivot towards smoke-free products, such as IQOS and ZYN, which now make up nearly 40% of its revenue. The company's focus on delivering a smoke-free future and evolving its portfolio has resonated with investors, driving its stock's outperformance.



PM's revenue growth has been driven by its smoke-free products segment, which reported a 17% organic growth in the third quarter of 2024. The company's overall revenue increased by 11.6% on an organic basis to $9.9 billion, with the cigarette business also performing strongly. This growth has been supported by PM's geographic diversification, with revenue generated from various regions, including Europe, Asia, Eastern Europe, Middle East, and Africa, Latin America and Canada, and other regions.

PM's market share in the tobacco industry has remained strong, with a market share of 38.13% as of Q3 2024. The company's market share relative to its competitors within the Consumer Non-Cyclical Sector is also 38.13%. This strong market position is a testament to PM's successful pivot towards smoke-free products and its ability to maintain a significant presence in key regions.

PM's dividend policy and yield have also contributed to its stock's attractiveness. The company offers a dividend yield of 4.5%, which is higher than the S&P 500 average of 1.24%. This high yield is attractive to income-oriented investors and has contributed to PM's stock performance.

In conclusion, PM's stock has outperformed its competitors despite a slight dip on the day, driven by the company's strategic shift towards smoke-free products, strong financial performance, and geographic diversification. The company's focus on delivering a smoke-free future and evolving its portfolio has resonated with investors, contributing to its stock's resilience and outperformance. As PM continues to invest in and innovate in the smoke-free products space, it is well-positioned to continue its strong performance in the long term.