I've Been Wrong About Philip Morris International Stock for 5 Years. Here's Why I'm Finally Changing My Mind.

The author reverses his 5-year bearish stance on Philip Morris International after the company successfully pivoted from declining cigarettes to higher-margin smoke-free products. Smoke-free products now represent 42% of revenue (up from 24% in 2020), with strong growth in IQOS heated tobacco and ZYN nicotine pouches. Q2 results beat expectations with 10.4% revenue growth and 15.2% EPS growth. However, at current valuations near $192, the stock is no longer considered cheap despite the improved business fundamentals.