Should I buy Philip Morris stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of Philip Morris for more than three years. Every month, hundreds of thousands of users across the United States rely on us to interpret market trends and pinpoint the best investment opportunities. Our analysis is intended for informational purposes only and does not constitute investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Philip Morris.

What is Philip Morris?

How much is Philip Morris stock?

The price of Philip Morris stock is rising this week. As of today, PM shares trade at $170.05, reflecting a 0.01% decrease over the past 24 hours but a gain of 8.89% for the week. The company holds a robust market capitalization of $264.69 billion, with an average trading volume of 3.2 million shares over the past three months. Philip Morris boasts a price-to-earnings (P/E) ratio of 34.99, a solid dividend yield of 3.18%, and a stock beta of 0.49, signaling lower volatility compared to the wider market. Despite recent strong performance, the low beta indicates relatively stable price movements, which may appeal to investors seeking consistency.

Our full analysis on Philip Morris stock

Having thoroughly analyzed Philip Morris International’s (PM) latest financial results alongside the stock’s vigorous performance over the past three years, our proprietary screening models—drawing upon multidimensional financial data, technical signals, and competitive benchmarking—point toward a stock that is again commanding serious investor attention. The company’s recent acceleration in both its core and innovative segments, paired with strengthening institutional confidence and a robust technical foundation, suggests a notable shift in the strategic calculus for consumer defensive sector investors. So, why might Philip Morris stock once again become a strategic entry point into the global next-generation nicotine sector in 2025?

Recent Performance and Market Context

Philip Morris has staged an extraordinary rally, advancing 41.3% year-to-date to reach $170.05 and generating a stunning 77% gain over the past twelve months, vastly outpacing both the S&P 500 and consumer staples index. Over a five-year horizon, the share price delivered a return of 132%, reinforcing both resilience and growth potential rarely found among legacy tobacco peers. This robust ascent has been underpinned by consensus-beating quarterly results, notably the Q1 2025 report which saw organic net revenues rise 10.2% and adjusted diluted EPS advance an impressive 24.6% year-on-year.

Recent positive events have further burnished investor sentiment. Management not only raised full-year 2025 guidance but also affirmed continued high-teens organic growth for operating income—signaling both visibility and operational strength amid a challenging macroeconomic backdrop. With the U.S. economy showing resilience and defensive consumer sectors regaining favor as inflation moderates, PM’s consistency of returns, above-market dividend, and lower beta profile (0.49) appeal to a broad spectrum of investors seeking stability with growth.

It’s particularly noteworthy that Philip Morris’s ongoing transformation into a smoke-free leader is now reshaping sector dynamics, making it an especially compelling story amid shifting regulatory and consumer trends.

Technical Analysis

A closer examination of the technical picture reveals sustained strength and pivotal support. The stock currently trades marginally above its 5-day moving average, underscoring recent price consolidation after a strong run. The 20-, 50-, and 100-day moving averages—all sharply upward—confirm a well-established uptrend, with the 200-day MA posting a remarkable 61.8% change, underscoring persistent long-term momentum.

• RSI (14): At 50.2, PM sits in neutral territory, providing substantial upside without risk of overextension.
• MACD: Remains positive at 0.31, clearly flashing a buy signal, supported by bullish crossover dynamics.
• Stochastics: Both %K and %D are elevated above 93%, reflecting powerful price action, though suggesting short-term consolidation is possible before the next leg higher.

Support levels at $168.89 and $161.35 are well buttressed by recent price action and moving averages, while resistance appears limited to the $172 zone—just above the current price. The narrow trading range near all-time highs, together with increasing average true range (3.92), points to contained volatility within a bullish regime.

Overall, the short- and medium-term technical profile supports the case for further appreciation, with the current consolidation providing a potentially attractive entry window for both tactical and long-term investors.

Fundamental Analysis

Philip Morris stands apart on the strength of its fundamentals. The company reported trailing twelve-month revenue of $38.39 billion and net income of $7.57 billion, driving EPS to $4.86. Its reported operating income for Q1 2025 surged 16.4% year-on-year, with net revenues climbing by 10.2% organically—reflecting both volume and pricing leverage.

Profitability metrics are robust: the adjusted operating income margin widened to 40.7% in Q1 2025, a 2.5 percentage point improvement, signaling both operating efficiency and premiumization across its diversified product portfolio.

While the current P/E ratio of 34.99 is elevated relative to tobacco sector norms, the forward P/E moderates to 21.84—more justifiable given the substantial mix-shift toward high-growth, high-margin smoke-free products. The PEG and P/S ratios, benchmarked against both consumer defensive and broader mid-cap growth stocks, suggest that Philip Morris’s valuation is increasingly warranted by its rapidly expanding smoke-free segment and future growth runway.

Underlying these headline numbers is a business undergoing structural transformation:

• Smoke-Free Leadership: Smoke-free revenues now comprise 42% of group sales and 44% of total gross profit, with organic growth rates exceeding 20%.
• Brand Power and Innovation: IQOS—setting benchmarks in heat-not-burn—commands a global volume share nearing 77% in its category, while ZYN nicotine pouches are catalyzing outsized expansion in both North America and international markets.
• Global Reach and Diversified Markets: With smoke-free offerings now in 95 markets, and product rollouts accelerating, PM has substantially de-risked its regional portfolio.

These competitive advantages reinforce the company’s reputation for both defensive reliability and forward-focused growth.

Volume and Liquidity

Philip Morris benefits from deep and persistent trading liquidity, with sustained high volumes reflecting robust institutional interest and enhancing price discovery. The current $264.69 billion market capitalization positions PM as a heavyweight within global consumer defensives, while its 1.56 billion shares outstanding ensure trading flexibility for large and small investors alike.

Elevated volume levels—especially during recent breakouts and earnings surprises—underscore strong market confidence, suggesting that accumulation remains in force. The float structure, with a dispersed and institutionally anchored shareholder base, supports a dynamic valuation and ensures the company remains a primary index constituent, drawing systematic flows.

Liquidity remains an unsung but crucial pillar of PM’s investability, enabling nimble position-building and offering a buffer during periods of market turbulence.

Catalysts and Positive Outlook

Several clear and present catalysts underpin a positive forward outlook for Philip Morris, markedly improving its medium- and long-term risk/reward profile:

• ZYN Nicotine Pouch Momentum: U.S. shipments are projected to rise to 800–840 million cans in 2025, reflecting 38–45% growth, with production expansions already ahead of schedule.
• Global Expansion: The ongoing rollout of smoke-free brands in both developed and emerging markets (including recent launches in the UK, Poland, Italy, South Africa, Pakistan) multiplies future growth vectors.
• Innovation Pipeline: Continuous R&D efforts—notably in multicategory, non-combustible alternatives—reinforce PM’s position as the world’s leading next-generation nicotine company.
• Margin Enhancement: The migration toward higher-margin products is already translating into improving profitability, safeguarding earnings growth even as legacy cigarette volumes decline.
• ESG Progress: Commitment to advancing corporate responsibility and product harm reduction aligns PM with evolving investor mandates and may drive incremental flows from ESG-focused funds.
• Regulatory Resilience: While the sector faces ongoing scrutiny, PM’s rapid shift to reduced-risk products and its broad geographic spread lessen idiosyncratic market exposure.

Notably, the recent upward revision to management’s 2025 guidance signals both confidence and upward visibility, increasing the probability of positive future earnings surprises—a historically potent bullish driver.

Investment Strategies

Philip Morris’s current set-up lends itself to multiple investment horizons, each with its own compelling entry rationale:

• Short Term:
• Technical indicators point to a consolidation phase just beneath all-time highs, with clearly defined support at $168.89 and $161.35. Momentum indicators suggest any near-term retracements could represent accumulation opportunities prior to the next upside push.
• The narrow trading band and low beta offer a controlled risk profile for tactical traders seeking exposure ahead of the next earnings release or major product announcements.
• Medium Term:
• The acceleration in ZYN shipments and further international market launches establish a credible pathway for sustained top-line growth through 2025.
• Margin expansion and an improving dividend outlook provide tailwinds for mid-term capital appreciation, while the dividend payout of $5.40 (yielding 3.18%) enhances total return potential.
• Long Term:
• Structural transformation toward reduced-risk, innovative nicotine delivery sharpens PM’s long-term investment case, positioning it for durable outperformance as regulatory frameworks evolve and category leadership solidifies.
• Stable cash flow generation, deep market penetration, and continuous innovation yield a stable bedrock for long-duration holders.

For investors considering incremental exposure, current levels offer an advantageous entry point at or near robust technical support, while the anticipation of further upward catalysts enhances the risk/reward profile.

Is it the Right Time to Buy Philip Morris?

Bringing together the technical, fundamental, and thematic dimensions of this analysis, Philip Morris International stands out as a stock whose recent transformation and accelerating fundamentals appear to justify renewed investor interest. Key strengths—outstanding smoke-free growth, operational agility, clear global leadership, robust dividend, and a demonstrable commitment to innovation—equip PM to seize opportunities amid an evolving consumer landscape.

With the stock consolidating just beneath its 52-week high following a decisive multi-year breakout, the technical structure hints at a brewing new bullish phase, while the company’s upwardly revised guidance, market share gains, and rapid margin improvements provide a solid underpinning for further appreciation.

While the sector is not without its external challenges, Philip Morris’s strategic pivot, financial resilience, and expanding portfolio in higher-growth segments offer a uniquely attractive blend of defensive security and future-oriented growth. Against this backdrop, the stock seems to represent an excellent opportunity—both in terms of current positioning and prospective upside—for investors seeking exposure to a large-cap consumer defensive undergoing profound positive structural change.

In a climate of global uncertainty and shifting consumer behavior, Philip Morris International’s compelling financial performance, state-of-the-art innovation, and strong technical foundation collectively serve as a powerful rationale for serious consideration as a portfolio cornerstone for 2025 and beyond. The confluence of these strengths suggests the timing may again be highly favorable to position for both income and long-term growth as the company enters a new chapter of industry leadership.

How to buy Philip Morris stock in United States?

Buying Philip Morris (PM) stock online is straightforward and secure when using a regulated U.S. broker. Investors generally choose between two main methods: purchasing shares outright (“spot” or “cash” buying), or trading Contracts for Difference (CFDs), which allow you to speculate on the stock’s price movements. Spot buying means owning the shares directly; CFD trading lets you use leverage for potentially greater gains—or losses. Both approaches can be started with just a few clicks on your broker’s trading platform. To help you choose the best broker for your needs, see the detailed broker comparison further down this page.

Spot Buying

A cash or “spot” purchase of Philip Morris stock means you buy and own real shares directly on the NYSE, becoming a part-owner of the company. U.S. brokers usually charge a fixed commission per trade, typical fees ranging from $0 to $7 per order, but $5 is a common benchmark.

Example

Suppose the Philip Morris share price is $170.05. With a $1,000 investment and a $5 brokerage fee, you could buy about 5 shares ($1,000 - $5 = $995; $995 ÷ $170.05 ≈ 5 shares).

Gain scenario: If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, or +10% on your investment.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on the price movements of Philip Morris shares without owning the underlying stock. CFDs offer flexibility—you can trade both rising and falling markets and use leverage to amplify your exposure. Typical fees include the spread (difference between buy and sell price) and possibly overnight financing charges if held for more than a day.

Example

With a $1,000 deposit and 5x leverage, you open a CFD position on Philip Morris, gaining exposure to $5,000 worth of stock.

Gain scenario: If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain on your $1,000 stake (excluding fees).

Final Advice

Before investing, it’s important to compare brokers’ fees and conditions—not all platforms offer the same rates or services. Your choice between cash buying and CFD trading depends on your objectives: direct ownership and long-term growth, or flexibility and leverage for short-term opportunities. To find the broker best suited to your needs, you’ll find a detailed comparison table further down this page.

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Our 7 tips for buying Philip Morris stock

The latest news about Philip Morris

Philip Morris International reported robust first-quarter 2025 results, with adjusted diluted EPS rising 12.7% and organic net revenues up 10.2%. This strong performance was driven by margin expansion, improved operating income, and a substantial contribution from the smoke-free segment. The company’s U.S.-listed shares surged 41.3% year-to-date, sharply outperforming market benchmarks. The momentum in earnings, coupled with management’s upward revision of 2025 guidance—including a projected 12-14% growth in adjusted diluted EPS—reflects both the company’s operational execution and resilient consumer demand for its products.

Smoke-free products, with a particular focus on the U.S. expansion of ZYN nicotine pouches, remain a core growth driver for Philip Morris. Shipments of ZYN in the United States exceeded 200 million cans in the last quarter, marking a 53% growth year-over-year and reinforcing the United States as a prime market for the company’s next-generation nicotine offerings. Early ramp-up of additional production capacity positions Philip Morris to meet surging demand, with full-year shipment projections of 800-840 million cans. This rapid expansion not only diversifies revenue streams away from traditional combustibles but also strengthens the company’s regulatory and market positioning in the U.S. nicotine category.

Philip Morris’s market share in both traditional and smoke-free product categories continues to advance, supported by innovation and geographic reach. In the United States and globally, the IQOS device and ZYN pouches are building on their leading positions, with IQOS products capturing additional industry share in key markets. The U.S. combustible business remains stable, showing a 1.1% increase in cigarette shipment volume, which contrasts favorably with declines elsewhere in the industry. The success of IQOS, now the number two global nicotine brand by volume where available, and record market shares in Europe and Japan, highlight the effectiveness of Philip Morris’s multi-category approach.

Technical analysis points to continued market strength and positive sentiment around PM shares despite a period of consolidation. With moving averages at all durations tilted significantly upward, and the MACD showing a continued ‘buy’ pulse, the stock remains well-positioned technically. The neutral RSI reading and proximity to recent highs indicate a healthy digestion of the prior rally, while support at $168.89 and a 200-day average far below current prices underscore ongoing investor confidence. The stock’s relatively low beta also provides U.S. investors with an attractive risk-adjusted return profile in uncertain macro environments.

Shareholder returns remain a priority, with a secure, above-market dividend yield and rising profitability supporting ongoing distributions to U.S. investors. Philip Morris’s quarterly dividend of $1.35 per share (annualized at $5.40, yielding 3.18%) is firmly backed by growing cash flows, enhanced by margin gains in the higher-profit smoke-free segment. The consistency of payouts, combined with robust potential for further capital appreciation, continues to make PM stock an attractive holding for U.S.-based dividend and growth investors alike, particularly given its strong positioning in new categories and ongoing market share gains.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.