Why Philip Morris (PM) is a Top Growth Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why This 1 Growth Stock Should Be On Your Watchlist
Growth investors build their portfolios around companies that are financially strong and have a bright future, and the Growth Style Score helps take projected and historical earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Philip Morris (PM)
Philip Morris International is progressing well with its business transformation in the face of consumers rising health consciousness and stern regulations to dissuade smoking. To this end, the tobacco giant has been expanding in the reduced risk products (RRPs) category, evident from the launch of IQOS (a heating tobacco device) that counts amongst one of the leading RRPs in the industry. We note that RRPs formed 31.4% of the company’s total revenues in second-quarter 2022. Continued rise in revenues from IQOS has been contributing toward RRP’s growth. Nevertheless, the company’s combustible category presently remains its major revenue contributor.
PM is a Zacks Rank #3 (Hold) stock, with a Growth Style Score of A and VGM Score of B. Earnings are expected to grow 5.7% year-over-year for the current fiscal year, with sales growth of 9.4%.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2023, while the Zacks Consensus Estimate has increased $0.60 to $6.32 per share. PM also boasts an average earnings surprise of 10.9%.
On a historic basis, Philip Morris has generated cash flow growth of 4.2%, and is expected to report cash flow expansion of 0% this year.
With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, PM should be on investors' short lists.
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Philip Morris International Inc. (PM) : Free Stock Analysis Report
