Friday's Underperforming Sectors: Cigarettes & Tobacco, Sporting Goods & Activities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 03 2025
0mins
Should l Buy PM?
Source: NASDAQ.COM
Market Performance: Sporting goods and activities shares are lagging, down approximately 0.4%, with Leslie's dropping 7.8% and Planet Fitness down 2.2%.
Sector Laggards: The report also highlights that cigarettes and tobacco are among the sectors underperforming on the same day.
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Analyst Views on PM
Wall Street analysts forecast PM stock price to rise
11 Analyst Rating
8 Buy
3 Hold
0 Sell
Moderate Buy
Current: 164.830
Low
175.00
Averages
191.95
High
210.00
Current: 164.830
Low
175.00
Averages
191.95
High
210.00
About PM
Philip Morris International Inc. is an international tobacco company. The Company’s product portfolio primarily consists of cigarettes and smoke-free products. Its smoke-free business (SFB) also includes wellness and healthcare products, as well as consumer accessories, such as lighters and matches. The Company’s segments include Europe Region; South and Southeast Asia, Commonwealth of Independent States, Middle East and Africa Region (SSEA, CIS & MEA); East Asia, Australia & PMI Global Travel Retail (EA, AU & PMI GTR), and Americas Region. The Company's brands include Marlboro, HEETS, IQOS, IQOS ILUMA, TEREA, VEEV and ZYN. Its IQOS smoke-free product brand portfolio includes heated tobacco and nicotine-containing vapor products. Its international cigarette brands are Chesterfield, L&M, and Philip Morris. It also owns a number of local cigarette brands, such as Dji Sam Soe and Sampoerna A in Indonesia, and Fortune and Jackpot in the Philippines.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- U.S. Debut: PMI's global science and innovation platform, Technovation, will debut in the U.S. on April 14, 2026, bringing together experts, policymakers, and business leaders to accelerate the transition to a smoke-free future, marking a significant strategic move for the company in the U.S. market.
- Investment and Expansion: PMI has invested over $16 billion in the U.S. for the development and commercialization of smoke-free products, with over 43 million legal-age consumers currently using its products, demonstrating the company's strong market influence in promoting smoke-free alternatives.
- Market Leadership: PMI's ZYN product is the first nicotine pouch authorized by the FDA in the U.S., establishing itself as a leader in the smoke-free product market, driving changes in consumer behavior, and fostering a responsible brand image in a highly regulated market.
- Scientific and Technological Advancements: The Technovation event will showcase PMI's scientific progress in smoke-free products, emphasizing collaboration with law enforcement to combat illicit trade, further solidifying the company's leadership position in the industry.
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- Procter & Gamble Overview: Founded in 1837, Procter & Gamble boasts a market cap of $335 billion, showcasing strong profitability and a market-leading dividend through products like Tide and Gillette, making it ideal for investors seeking stable returns.
- Dividend Growth Record: With a current dividend yield of 2.94%, Procter & Gamble has increased its payout for 69 consecutive years, demonstrating reliability and sustainability in long-term returns, appealing to stability-focused shareholders.
- Philip Morris International Overview: With a market cap of $257 billion, Philip Morris International has seen an 83% stock price increase over the past five years, and its diversified global operations mitigate risks from market fluctuations, enhancing the company's resilience.
- Innovation and Acquisition Strategy: By acquiring Swedish Match, Philip Morris International gained access to the leading oral tobacco product Zyn and is transitioning towards lower-harm products, with a dividend yield of 3.55% and a 17-year streak of payout increases, indicating strong potential for innovation-driven growth.
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- Transformation Progress: Philip Morris International (PM) emphasizes in its Value Report 2025 that its transformation extends beyond product innovation to capital allocation and stakeholder engagement, showcasing a comprehensive strategy for sustainable growth.
- Smoke-Free Product Sales: As of the end of 2025, PM's smoke-free products are sold in 106 markets and used by approximately 43.5 million adult consumers, indicating a significant increase in global market penetration that drives revenue growth.
- Revenue Contribution: PM's smoke-free products generated $16.9 billion in revenue last year, accounting for 41.5% of total annual revenue, reflecting the success of the company's transformation and laying a foundation for future sustainable development.
- Future Strategy: The company's Value Plan 2030+ focuses on six priorities, including consumer health, circularity, and climate change, aiming to align sustainability with business performance to enhance long-term resilience and market competitiveness.
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- Stock Price Surge: As of March 26, Altria (MO) has risen over 12% year-to-date, indicating investor preference for value stocks despite a sluggish overall market performance.
- Attractive Dividends: With a dividend yield of 6.5%, Altria has consistently increased its dividends for 57 consecutive years, earning it the title of 'Dividend King' and providing a competitive edge within the S&P 500.
- Market Challenges: While Altria leads the tobacco industry, the declining number of adult smokers in the U.S. poses a significant challenge; although the company has raised prices to offset volume declines, the long-term viability of this strategy is questionable.
- Investment Potential: Despite limited success in the smoke-free category, Altria's strong cash flow and ongoing shareholder return strategies, including a $1 billion stock buyback in 2025, continue to make it appealing to value investors.
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- Dividend Growth: Altria has increased its dividend for 57 consecutive years, currently boasting a 6.5% yield ($1.06 quarterly), ranking among the highest in the S&P 500, reflecting its strong commitment to shareholder returns.
- Market Challenges: Despite its impressive dividend record, the decline in U.S. adult smokers has led to falling volumes, forcing Altria to rely on price increases to offset this decline, a strategy that may not be sustainable in the long term.
- Investment Risks: Altria's attempts to establish a foothold in the smoke-free category have not yielded significant success, particularly with nearly $13 billion lost on its Juul investment and competition from Philip Morris International's Zyn, adding uncertainty to future growth prospects.
- Value Investment Opportunity: Despite these challenges, Altria is viewed as an ideal choice for value investors due to its strong cash flow and ongoing shareholder return strategies, making it particularly suitable for retirees seeking reliable income.
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- Sustainability Strategy: Philip Morris International (PMI) released its 2025 Value Report, introducing the Value Plan 2030+ aimed at driving the company's transformation towards a smoke-free future through continuous innovation and capital allocation, which is expected to significantly enhance its competitiveness in global markets.
- Strong Financial Performance: PMI's smoke-free products achieved net revenues of $16.9 billion in 2025, representing 41.5% of total annual net revenues, indicating substantial market share growth during the transformation and reinforcing its leadership in consumer health.
- Reduced Environmental Impact: PMI achieved a 46% reduction in greenhouse gas emissions compared to 2019 and reached carbon neutrality in its direct operations by 2025, demonstrating proactive efforts in addressing climate change and enhancing its sustainable brand image.
- Commitment to Social Responsibility: By the end of 2025, 99.6% of contracted farmers achieved a living income, showcasing PMI's success in promoting agricultural sustainability and social responsibility, which further enhances trust and brand loyalty among stakeholders.
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