Philip Morris InternationalNYSE: PM

Is Philip Morris (PM) a strong choice for momentum investors? Let's take a closer look.

The PM has announced strong results for the third quarter of 2024, which has led to a significant increase in its stock prices. The company's success is mainly due to rising sales of combustibles and higher prices this year, boosting its revenue and market share. Additionally, the effective smoke-free products like IQOS and ZYN suggest that the fourth quarter of 2024 may also show impressive results.

Philip Morris is successfully shifting its focus to less harmful tobacco products, such as ZYN nicotine pouches. Despite facing regulatory challenges and supply issues, ZYN is becoming increasingly popular. These nicotine pouches have important benefits, including no known cancer risk, the ability to be used in places where smoking is not allowed, and no flavor restrictions from the FDA, unlike e-cigarettes.

Philip Morris International reached a record high following a strong earnings report for the third quarter, which showed significant revenue growth and an improved forecast for 2024. The company's newer products, like IQOS and ZYN, are growing much faster than traditional tobacco, contributing to an increase in overall profits. PM has raised its earnings expectations for 2024, anticipating up to a 7.3% growth compared to last year, while also ensuring a solid dividend coverage ratio.

This tobacco stock continues to rise.

Zyn keeps driving the company's expansion.

Check out ETFs that include Philip Morris, as the tobacco company has exceeded earnings expectations and reached an all-time high.

Stifel analyst Matthew E. Smith has maintained a Buy rating for Philip Morris International Inc PM and has increased the price target from $138 to $145.

PM announced its eleventh earnings triple play, the first one since February 2023. As a result of the significant increase in its stock price, PM's dividend yield fell from 4.54% on Monday to 4.15% on Tuesday. Although the yield has decreased and is now in the lower 25% of its historical range, it still ranks as the 37th highest yield among all S&P 500 companies.