Stamford, Connecticut-based Philip Morris International Inc. (PM) is a tobacco company that offers cigarettes and smoke-free products, including heat-not-burn, vapor, and oral nicotine products, as well as consumer accessories like lighters and matches. Valued at a market cap of $260.2 billion, the company also offers a range of wellness and healthcare products. 

Companies worth $200 billion or more are typically classified as “mega-cap stocks,” and PM fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the tobacco industry. The company's strength lies in its robust global brand portfolio, with Marlboro as one of the world’s best-selling cigarette brands. It specializes in leveraging innovation and science to transition toward smoke-free products, benefiting from a vast international distribution network that operates in over 180 markets. 

Despite its notable strength, this tobacco giant has dipped 10.5% from its 52-week high of $186.69, reached on Jun. 16. Moreover, shares of PM have declined 6% over the past three months, underperforming the Consumer Staples Select Sector SPDR Fund’s (XLP) 1.6% drop during the same time frame.

Nonetheless, in the longer term, PM has soared 36.4% over the past 52 weeks, considerably outpacing XLP's 1.8% downtick over the same time period. Moreover, on a YTD basis, shares of PM are up 38.9%, compared to XLP’s 2.8% rise. 

To confirm its recent bearish trend, PM has been trading below its 50-day moving average since late July, with a minor fluctuation. Nonetheless, it has remained above its 200-day moving average over the past year. 

On Jul. 22, shares of PM plunged 8.4% after its Q2 earnings release. The company’s net revenue of $10.1 billion grew 7.1% from the prior-year quarter, with total shipment volumes up 1.2%. However, the top-line figure fell short of the consensus estimates, which might have lowered investor confidence. Nonetheless, on the brighter side, its adjusted EPS of $1.91 managed to surpass the analyst estimates of $1.85 and surged by an impressive 20.1% year-over-year. 

PM has outpaced its rival, Altria Group, Inc. (MO), which gained 26.3% over the past 52 weeks and 28.5% on a YTD basis. 

Despite PM’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 15 analysts covering it, and the mean price target of $194.92 suggests a 16.6% premium to its current price levels.