Philip Morris International Inc. (PM): A Bull Case Theory

We came across a bullish thesis on Philip Morris International Inc. (PM) on Librarian Capital’s Substack. In this article, we will summarize the bulls’ thesis on PM. Philip Morris International Inc. (PM)'s share was trading at $177.87 as of 29^th May. PM’s trailing and forward P/E were 28.02 and 23.75, respectively, according to Yahoo Finance.

Philip Morris (PM) demonstrated solid growth in Q1 2025, with revenues up 5.8%, EBIT up 12.8%, and EPS up 13.1%, driven notably by a 15% increase in U.S. ZYN consumer offtake volume and a 53% rise in shipments. The company raised its 2025 outlook, projecting adjusted EPS growth of 12-14% in dollar terms.

Despite potential political risks, PM is viewed as largely “Trump-proof” due to its diversified exposure and product portfolio. Trading at $170.24 with a ~23x P/E and a 3.2% dividend yield, PM offers an attractive total return potential of 57% (13.7% annualized) by the end of 2028. Having been a cornerstone of the “Select 15” model portfolio since 2023 and a top-five holding since September 2023, PM has delivered strong long-term performance, with shares up 120% since the initial Buy rating in 2019. The company’s structural growth and resilience to macroeconomic shocks, including new U.S. tariffs, underpin its investment appeal, making it a compelling buy with limited downside risk and strong upside potential.

Previously, we have covered Philip Morris International Inc. (PM) in April 2025 wherein we summarized a bullish thesis by Hidden Market Gems on Substack. The author highlighted the company’s resilience amid rising trade tensions and economic uncertainty. The author argued that PM’s locally sourced supply, strong pricing power, and macro-proof product lineup made it an ideal investment in a volatile market environment. Since our last coverage, the stock is up 17.6% as of 29^th May.

Philip Morris International Inc. (PM) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 104 hedge fund portfolios held PM at the end of the first quarter which was 102 in the previous quarter. While we acknowledge the potential of PM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.