Philip Morris International (PM) Surged on Robust Organic Net Sales and Volume Gains

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Value Opportunities Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q1 2025, the Russell 3000 Index declined -4.7%, driven by the mega-cap growth stocks. The Magnificent Seven represented over 28% of the Russell 3000 Index in the quarter, collectively experiencing a decline of 14%. The value outperformed its growth counterpart in the first quarter. The fund returned 2.27% in the quarter, exceeding the Russell 3000 Value Index’s 1.64% return. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its first-quarter 2025 investor letter, Hotchkis & Wiley Value Opportunities Fund highlighted stocks such as Philip Morris International Inc. (NYSE:PM). Philip Morris International Inc. (NYSE:PM) is a tobacco company that offers cigarettes and smoke-free products. The one-month return of Philip Morris International Inc. (NYSE:PM) was -1.73%, and its shares have appreciated by 75.04% over the past 52 weeks. On July 1, 2025, Philip Morris International Inc. (NYSE:PM) stock closed at $177.53 per share, with a market capitalization of $276.329 billion.

Hotchkis & Wiley Value Opportunities Fund stated the following regarding Philip Morris International Inc. (NYSE:PM) in its Q1 2025 investor letter:

"Philip Morris International Inc. (NYSE:PM) is one of the world’s largest tobacco companies and owns the international rights to the world’s most popular cigarette brand, Marlboro. It has a presence in 180 countries worldwide with leading market share in most markets. The company’s shares moved higher on strong organic net sales and volume gains. We like the diversifying benefits the company provides to the portfolio, in addition to its attractive yield."

Philip Morris International Inc. (NYSE:PM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 104 hedge fund portfolios held Philip Morris International Inc. (NYSE:PM) at the end of the first quarter, which was 102 in the previous quarter. Philip Morris International Inc. (NYSE:PM) delivered double-digit organic net revenue growth of plus 10.2% in Q1 2025, reaching $9.3 billion in total.  While we acknowledge the potential of Philip Morris International Inc. (NYSE:PM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Philip Morris International Inc. (NYSE:PM) and shared the list of best FMCG stocks to buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of PM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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