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Philip Morris stock hits 52-week high at $121.86 amid strong growth

Published 27/08/2024, 14:44
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Philip Morris International Inc (NYSE:PM). has reached a new 52-week high, with its stock price soaring to $121.86. This milestone reflects a significant uptrend for the tobacco giant, marking a robust 26.88% increase over the past year. Investors have shown increased confidence in the company's performance and future prospects, as evidenced by the stock's impressive climb. The 52-week high serves as a testament to Philip Morris's enduring appeal in the market, despite the challenges faced by the tobacco industry. This one-year change underscores the company's successful strategies and its ability to adapt and thrive in a rapidly evolving business landscape.

In other recent news, Philip Morris International has announced a $232 million investment to expand its Owensboro, Kentucky, manufacturing facility. The expansion, which is expected to be completed by the second quarter of 2025, is in response to growing demand for ZYN nicotine pouches. The investment is projected to create 450 direct jobs and 410 indirect jobs in Kentucky. This development follows Philip Morris's recent $600 million investment to open a new nicotine pouch manufacturing facility in Aurora, Colorado.

In addition to its expansion efforts, Philip Morris has also been included in Goldman Sachs (NYSE:GS)' US Conviction List, indicating the investment bank's confidence in the company's potential market performance. Analysts from Deutsche Bank (ETR:DBKGn) and BofA Securities have maintained a Buy rating on shares of Philip Morris and increased their price targets following the company's strong second-quarter performance. The company reported a gross profit of $6,139 million and an adjusted operating income rise of 12.5% to $3,656 million.

Furthermore, Philip Morris reported significant organic top-line and operating income growth for the second quarter of 2024, with strong performance from its smoke-free products. The company has raised its full-year growth forecast for 2024 and continues to focus on sustainability and cost savings. These are the recent developments for Philip Morris International.

InvestingPro Insights

Philip Morris International Inc.'s recent achievement of a new 52-week high is accompanied by several notable metrics and insights from InvestingPro. With a market capitalization of $189.28 billion and a P/E ratio of 21.46, the company's financial health appears robust. The stock's performance is further bolstered by a significant gross profit margin of 63.87% over the last twelve months as of Q2 2024, highlighting the company's efficiency in managing its production costs.

InvestingPro Tips suggest that Philip Morris has demonstrated a strong commitment to shareholder returns, having raised its dividend for 16 consecutive years, with a current dividend yield of 4.29%. This consistent dividend growth, coupled with a 34.67% one-year price total return, reflects the company's ability to generate value for investors. Additionally, the stock has experienced a large price uptick over the last six months, with a 38.09% total return in that period.

For investors seeking more detailed analysis and additional insights, there are further InvestingPro Tips available on https://www.investing.com/pro/PM, which can provide valuable context for Philip Morris's stock performance and future outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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