Philip Morris: Gen Z Likes Zyn

Summary

  • Zyn, Philip Morris International's nicotine pouch product, has demonstrated exceptional growth, particularly among Gen Z, and holds a significant market share in the US.
  • Despite Zyn's success, Philip Morris' stock has underperformed, creating an opportunity for investors as the market undervalues Zyn's potential.
  • Zyn's strong performance is reflected in Philip Morris' Q1 2024 earnings report, with robust volume growth and exceeding revenue expectations.

Zyn Nicotine Pouches Come Under Political Scrutiny

Michael M. Santiago/Getty Images News

Investment Thesis

I believe Philip Morris International (NYSE:PM) is a compelling buy due to the continued transformative potential of Zyn, its nicotine pouch product.

I believe Zyn has demonstrated exceptional growth, particularly in the US, where

This article was written by

This account is managed by Noah's Arc Capital Management. Our goal is provide Wall Street level insights to main street investors. Our research focus is mainly on 20th century stocks (old economy) undergoing a 21st century transformation, but occasionally we'll write on companies that help transform 20th century firms as well. We look for innovations in a business model that will cause a stock to change dramatically. Associated with SA contributor Elijah Buell.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Noah Cox (account author) is the managing partner of Noah’s Arc Capital Management. His views in this article are not necessarily reflective of the firms. Nothing contained in this note is intended as investment advice. It is solely for informational purposes. Invest at your own risk.

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