Philip Morris is a growth stock again as shares hit all-time high on Zyn demand boom

philip morris international Shares hit record highs on Tuesday after the tobacco company reported a surge in demand for its Zyn brand.

The Connecticut-based company’s stock traded at a high of more than $130, setting a new intraday record. The stock price hit a new high on a closing price basis, marking the biggest single-day increase since March 2020.

Tuesday’s pop came after the company touted an impressive increase in shipments of its Zyn oral nicotine pouches. It’s the latest milestone in a surge in stocks this year, as Wall Street sees how the product is capturing consumer interest.

The stock saw little movement from 2013 to 2023, with investors viewing it as a dividend shot in a struggling industry. Traders currently view the stock as a growth stock. This is largely due to Zyn’s success since Philip Morris acquired the Zyn brand through a deal with Swedish Match two years ago.

“America’s No. 1 smoke-free brand continues to show very strong underlying momentum,” Finance Director Emmanuel Babeau told analysts on a conference call Tuesday.

Zyn demand in the U.S. primarily drove shipments of Philip Morris’ oral products up nearly 40% in the first nine months of 2024 compared to the same period last year.

Part of this growth is due to easing of product supply constraints. Zyn can shipments in the U.S. in the third quarter increased by more than 41% compared to the same period in 2023. Philip Morris expects Zyn shipments to match demand “at some point” during the fourth quarter, Babeau said.

Growth is also occurring internationally, with the total volume of nicotine pouches outside the United States surging by nearly 70% from Q3 2023 to 2024. Following the brand’s recent expansion into Greece and the Czech Republic, Zyn is now available in 30 markets.

Philip Morris also pointed to Zyn as a key driver of net revenue across its businesses. The company reported third-quarter results that beat the expectations of analysts surveyed by FactSet and also raised its earnings per share outlook for the year.

Zyn has become a symbol of tobacco companies’ transition to alternatives to traditional cigarettes. Philip Morris announced earlier this year that it would invest $600 million to build a new Zyn production facility in Colorado.

Philip Morris stock price rose more than 37% in 2024. This would be the best year ever for the company, which spun off in 2008 in part due to smoker lawsuits. Philip Morris maintained its still growing international tobacco business. shares of Artoriaheld the US tobacco sector afloat, but it has since struggled and remains well below its all-time high set in 2017.