5-Star Stocks Poised to Pop: Philip Morris
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global tobacco giant Philip Morris International (NYS: PM) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Philip Morris' business and see what CAPS investors are saying about the stock right now.
Philip Morris facts
Headquarters (founded) | New York (1987) |
Market Cap | $151.1 million |
Industry | Tobacco |
Trailing-12-Month Revenue | $31.1 billion |
Management | Chairman/CEO Louis Camilleri (since 2008) |
Return on Capital (average, past 3 years) | 34.4% |
Cash/Debt | $2.6 billion / $18.5 billion |
Dividend Yield | 3.5% |
Competitors | British American Tobacco |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 98% of the 2,858 members who have rated Philip Morris believe the stock will outperform the S&P 500 going forward.
Earlier this year, one of those Fools, Naxias, tapped the stock as a steady long-term outperformer:
I have no illusions that I will ever see the returns of 2011 ever again. ... Instead, I anticipate that the growth prospects, which are truly fantastic, will sustain the price and deliver a trend that bests the [S&P 500] for the next 5 and 10 years. Consider that a company like Apple has to invent new products to be king of the hill. In contrast, [Philip Morris] has to execute its proven business plan. Long live the dividend portfolio.
If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong five-star rating, Philip Morris may not be your top choice.
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Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.
At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Philip Morris and Apple, as well as creating a bull call spread position in Apple. The Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.
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