Philip Morris PM is a leading international tobacco company working to deliver a smoke-free future, evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector.

The stock sports a favorable Zacks Rank #1 (Strong Buy), with earnings expectations moving higher across the board.

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In addition to favorable earnings estimate revisions, the stock resides in the Zacks Tobacco industry, which is currently ranked in the top 7% of all Zacks industries. Let’s take a closer look at how the company stacks up.

PM Shares Soar

Philip Morris shares have benefited nicely from its latest set of better-than-expected results, with the company exceeding both consensus EPS and sales expectations. Demand has remained strong for the tobacco titan, with product innovations, namely its smoke-free business (SFB), remaining key for its future.

Shipment volumes for its smoke-free business increased by nearly 15% year-over-year throughout its latest period. Shares have been very strong overall in 2025, gaining more than 40% and widely outperforming relative to the S&P 500.

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Further, smoke-free products exceeded 40 billion units for the first time ever throughout its latest FY24, further reflecting the healthy demand picture PM has been enjoying.  

Shares currently yield a market-beating 3.5% annually, likely attractive to those with an income-focused approach. And the company has consistently upped its payouts over its history, currently sporting a 2.8% five-year annualized dividend growth rate.

Below is a chart illustrating the company’s dividends paid on an annual basis.

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Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

Philip Morris PM is currently a Zack Rank #1 (Strong Buy).

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Philip Morris International Inc. (PM) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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