Track market-moving stories before they get noisy

On May 27, 2026, Sea Ltd SE shares rose 5.0% to a current price of $93.46. This move comes amidst a 52-week trading range of $77.05 to $199.30, highlighting significant volatility for the stock over the past year.

GF Value™ verdict: Current price of $93.46 is 28.4% below the GF Value™ estimate of $130.44.GF Score™ of 71/100 indicates an above-average rating in terms of potential long-term returns.Most notable signal: Insiders sold $161.4M worth of shares in the last three months, indicating a lack of buying confidence. Is SE Overvalued or Undervalued? Currently, Sea Ltd’s shares are trading at $93.46, significantly below the GF Value™ estimate of $130.44, which implies a margin of safety of 28.4%. This suggests that the stock is undervalued based on GuruFocus’ proprietary intrinsic value measure. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Being labeled as "modestly undervalued," the stock presents an opportunity for potential appreciation. However, investors should be cautious, as the recent insider selling may reflect concerns regarding the company’s future performance.

Moreover, with a GF Score™ of 71/100, Sea Ltd ranks above average, indicating some strengths in its financial metrics despite significant challenges, as reflected in its price performance year-to-date and over the past year.

How Does SE's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 36.8x 99.6x Forward P/E 30.8x N/A Sea Ltd's current P/E (TTM) of 36.8x is significantly below its 5-year median P/E of 99.6x, indicating that the stock is trading at a much lower valuation compared to its historical norm. This P/E analysis aligns with the GF Value™ verdict of the stock being undervalued, suggesting that there may be an opportunity for investors if the company can capitalize on its growth prospects.

What Does SE's GF Score™ Tell Us? Metric Rating GF Score™ 71 Financial Strength 8/10 Profitability 4/10 Growth 9/10 Valuation 4/10 Momentum 2/10 The GF Score™ provides a comprehensive look at Sea Ltd's strengths and weaknesses. With a strong growth rank of 9/10 and solid financial strength at 8/10, the company demonstrates potential in its operational performance. However, it falls short in profitability (4/10) and momentum (2/10), suggesting challenges in sustaining recent price increases and generating consistent profits. This mixed performance highlights the need for investors to consider both the growth potential and current profitability when evaluating the stock.

What Are Insiders Doing with SE Stock? Recent insider activity for Sea Ltd has shown a significant selling trend, with insiders offloading $161.4 million worth of shares in the last three months and no notable buying. This pattern might suggest a lack of confidence among insiders regarding the stock's immediate prospects and could serve as a red flag for potential investors. The absence of insider buying further emphasizes caution, as it may indicate that those closest to the company do not foresee a favorable near-term outlook.

What This Means for Investors Based on the GF Value™ assessment, Sea Ltd is currently undervalued, trading significantly below its intrinsic value. However, potential investors should remain cautious due to recent insider selling and the company's mixed financial metrics. The stock's valuation suggests an opportunity, but the risks associated with its profitability and momentum cannot be overlooked.

For the complete analysis, visit the Sea Ltd SE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SE's GF Score™?

The GF Score™ for Sea Ltd is 71/100, indicating an above-average potential for long-term returns based on its financial metrics.

Is SE overvalued or undervalued?

Sea Ltd is currently undervalued, trading at a price of $93.46, which is 28.4% below the GF Value™ estimate of $130.44.

What is SE's P/E ratio?

Sea Ltd's P/E (TTM) ratio is 36.8x, which is significantly lower than its 5-year median P/E of 99.6x, indicating the stock is trading at a lower valuation compared to its historical performance.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Sea Limited is upgraded to Buy, citing a compelling GARP/PEG setup and bottoming chart pattern. SE offers robust fundamentals: 44% gross margin, $5.3B FCF, and a strong balance sheet with $10.5B cash ($6.6 billion net of debt). Valuation is extremely attractive—EV/EBITDA 12.1x (2026E), PEG

FILE PHOTO: A BP logo is seen at a petrol station in London, Britain, January 15, 2015. REUTERS/Luke MacGregor/File Photo Purchase Licensing Rights, opens new tab

CompaniesJune 2 (Reuters) - BP (BP.L), opens new tab held advanced talks to sell its ​UK North Sea assets to Ithaca ‌Energy (ITH.L), opens new tab in a deal worth nearly £2 billion ($2.69 billion), the Financial Times reported on Tuesday, citing people ​familiar with the matter.

While the talks failed ​in recent weeks, BP is still ⁠exploring options and may pursue a deal ​with other competitors, the report said.

Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.

Ithaca Energy declined ​to comment, while BP did not immediately respond to Reuters' request for comment.

Bloomberg News reported last month ​that BP was weighing a sale of ​some or all of its UK North Sea operations.

The ‌energy ⁠major operates five key production hubs in the North Sea region, including the Clair oilfield, the largest on the UK continental shelf, ​according to ​its website.

Under ⁠new CEO Meg O'Neill, who took charge in April, BP is reorganising ​into two main business units - upstream ​and ⁠downstream.

The company has cut billions of dollars from planned renewable energy projects, pledged to ⁠divest $20 ​billion of assets by 2027, ​and reduce debt and costs.

($1 = 0.7429 pounds)

Reporting by Fabiola ​Arámburo in Mexico City; Editing by Diti Pujara

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Sea Limited Sponsored ADR (SE - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this company have returned -0.6%, compared to the Zacks S&P 500 composite's +4.6% change. During this period, the Zacks Internet - Software industry, which Sea Limited falls in, has gained 6.4%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Sea Limited is expected to post earnings of $1.03 per share, indicating a change of +21.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -5.3% over the last 30 days.

The consensus earnings estimate of $4.24 for the current fiscal year indicates a year-over-year change of +28.9%. This estimate has changed -2.1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $5.72 indicates a change of +34.9% from what Sea Limited is expected to report a year ago. Over the past month, the estimate has changed +1.2%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Sea Limited.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Sea Limited, the consensus sales estimate for the current quarter of $7.34 billion indicates a year-over-year change of +36.8%. For the current and next fiscal years, $30.72 billion and $37.61 billion estimates indicate +30.8% and +22.4% changes, respectively.

Last Reported Results and Surprise HistorySea Limited reported revenues of $7.33 billion in the last reported quarter, representing a year-over-year change of +43.2%. EPS of $0.84 for the same period compares with $0.86 a year ago.

Compared to the Zacks Consensus Estimate of $6.95 billion, the reported revenues represent a surprise of +5.5%. The EPS surprise was -12.5%.

Over the last four quarters, Sea Limited surpassed consensus EPS estimates times. The company topped consensus revenue estimates each time over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Sea Limited is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Sea Limited. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Yemen's Iran-aligned Houthis said on Monday that they would ban ships linked to Israel from the Red Sea after Israel renewed its military attacks on Iran, adding to concerns about global shipping and energy flows.

STAMFORD, CT--(BUSINESS WIRE)--Regulatory News:

Philip Morris International Inc. (PMI) (NYSE: PM) announced today that Massimo Andolina has been appointed Group Chief Financial Officer, effective August 1, 2026, reporting to Jacek Olczak, Group CEO PMI. Massimo succeeds Emmanuel Babeau, who will remain with the Company until March 31, 2027 as Strategic Advisor to the Group CEO PMI, to ensure a smooth CFO transition.

“Massimo is a highly respected leader with a deep knowledge of PMI and a strong track record of driving innovation, business growth, and people development,” said Jacek Olczak, Group CEO PMI. “I am confident that his experience, business judgment, and leadership will serve him extremely well in his new role as we continue to deliver best-in-class growth and sustainable performance for shareholders.

I would like to warmly thank Emmanuel for his leadership and strong delivery over the past 6 years, a period of remarkable success for our smoke-free business, with strong financial performance and excellent shareholder returns.”

Mr. Andolina joined PMI in 2008, and over the course of his journey, he has made significant contributions across the organization in a number of senior operational and strategic roles.

Since being appointed President, Europe Region in 2023, Mr. Andolina’s responsibilities have included the execution of strategic and operational priorities, as well as the financial performance of the largest region and most advanced smoke-free geography in the group. Under Mr. Andolina’s leadership the Europe Region delivered robust top and bottom-line growth, underpinned by excellent smoke-free progress at-scale and resilient combustibles performance. He led significant regional organizational changes to strengthen management depth, improve financial discipline, and accelerate sustainable growth, while remaining a visible advocate for innovation, people development and constructive engagement with external stakeholders across Europe.

From 2018 to 2023, Mr. Andolina served as PMI’s Senior Vice President, Global Operations, where he led a supply chain and manufacturing organization of over 30,000 people in an increasingly complex environment with significant external volatility. Mr. Andolina implemented a number of enterprise-wide transformation initiatives and operational efficiencies, many of which continue to benefit the company today, contributing to sustained improvements in PMI’s gross margin while enhancing resilience. Earlier, from 2016 to 2017, he served as Vice President, PMI Transformation, playing an important role at a pivotal moment in the company’s evolution.

Prior to joining PMI, Mr. Andolina held a number of strategic and business development roles at other large multinational corporations. He holds a Master of Science in Mechanical and Industrial Engineering from the University of Palermo, and an MBA from IMD in Lausanne.

Mr. Babeau was appointed Chief Financial Officer in May 2020 and joined PMI with extensive experience of transformation and Finance leadership across several industries, including at Schneider Electric and Pernod Ricard. Over the past six years, Mr. Babeau has made a significant contribution to both PMI’s strong financial performance and its evolution into a recognized growth company, including through the acquisition of Swedish Match in 2022 and a substantial increase in the share of net revenues derived from our smoke‑free business, which reached 43% in Q1 2026.

Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch and e-vapor products. Our smoke-free products are available for sale in over 105 markets, and as of December 31, 2025, PMI estimates they were used by over 43 million legal-age consumers around the world, many of whom have moved away from cigarettes or significantly reduced their consumption. The smoke-free business accounted for 43% of PMI’s first-quarter 2026 total net revenues. Since 2008, PMI has invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables and General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness areas. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and goals and other forward-looking statements, including statements regarding business plans and strategies. Achievement of future results is subject to risks, uncertainties, and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.

PMI's business risks include: marketing and regulatory restrictions that could reduce our competitiveness, disrupt our SFP commercialization efforts, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; excise tax increases and discriminatory tax structures; health concerns relating to the use of tobacco and other nicotine-containing products; litigation related to tobacco and/or nicotine products and intellectual property rights; intense competition; inability to anticipate changes in adult consumer preferences; use and reliance on third-parties; the adverse effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; geopolitical instability affecting international trade; the impact and consequences of Russia's invasion of Ukraine; changes in adult smoker behavior; continued decline of tax-paid cigarettes; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, sustained periods of elevated inflation, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; disruptions in the credit markets or changes to its credit ratings; recent and potential future tariffs imposed by the U.S. and other countries; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as product components for our electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies. PMI's future profitability may also be adversely affected should it be unsuccessful, in key markets or systemically, in its efforts to introduce, commercialize, and grow smoke-free products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity; if there are prolonged disruptions of facilities used to produce its products; if it is unable to enter new markets or improve its margins through increased prices and productivity gains; if other market participants are more successful in their SFP commercialization efforts; if it is unable to attract and retain the best global talent; or if it is unable to successfully integrate and realize the expected benefits from recent transactions and acquisitions. Future results are also subject to the lower predictability of our smoke-free products performance.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI’s Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2025 and Quarterly Report on Form 10-Q for the first quarter ended March 31, 2026. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

When it comes to finding the top dividend stocks to buy and hold, many investors take one of two routes. Either they focus on high-yield dividend stocks or on stocks with long, established dividend growth records.

While both strategies are valid, they each have flaws. For instance, an overemphasis on yield could lead you to own many stocks that turn out to be "yield traps" or "value traps," weighing down your portfolio's long-term total returns.

In the case of long-standing dividend growth stocks, you could be paying too high a valuation premium, and/or focusing too much on mature businesses that are more limited in their future dividend growth potential.

With this in mind, you may want to consider a third route: Focus on stocks that could be dividend royalty in the making. These stocks are prime examples: Mastercard (MA +0.53%), Microsoft (MSFT +0.11%), and Philip Morris International (PM +1.95%).

Image source: Getty Images.

Mastercard: A financial tollbooth on a dividend growth streak Mastercard, along with competitors like Visa, operates under a tollbooth-style business model. Rather than being the bank issuing the credit cards and taking on the credit risk, payment processing network operators like this one generate fees from the trillions of personal and business transactions completed using credit and debit cards.

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This not only creates a steady, high-margin revenue stream. It also opens the door for elevated growth, as payment transactions around the globe shift from cash-based to card- and digitally based. With this, it's not surprising that Mastercard shares have handily outperformed the S&P 500 in the last decade.  

Mastercard has experienced 14 years of consecutive dividend growth. Quarterly dividends have gone from less than $0.01 per share in 2006 to $0.87 per share today.

In recent years, annual dividend growth has averaged 10% to 15%. If this trend continues, Mastercard, with a forward yield of 0.7%, could produce a tremendous yield on your long-term position in the stock.

Don't sleep on Microsoft's dividend growth potential When you think of Microsoft, the tech giant's generative artificial intelligence (GenAI) tailwinds may be what first come to mind. However, even if Microsoft's AI-related growth slows down in the years ahead, the company's strength as a dividend growth stock could persist.

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With 24 years of dividend growth under its belt, Microsoft is nearly halfway to becoming a Dividend King. Dividend Kings are stocks with at least 50 years of consecutive dividend growth. Microsoft's forward dividend yield may be 0.9%, but if Microsoft's current rate of dividend growth persists, its quarterly payouts could become a greater contributor to overall returns.

In recent years, annual dividend growth has averaged over 10%. Relatively high levels of dividend growth may be sustainable, even if earnings growth starts slowing down from current levels exceeding 20%.

With its payout ratio currently at around 21%, Microsoft has plenty of room to allocate even more of its free cash flow to dividends, especially as AI growth slows down, and the company starts taking its foot off the gas in terms of AI-related capital expenditures.

Philip Morris International -- from smokeless leader to Dividend King? Philip Morris International is another stock that debuted in the 2000s and has since become one of the blue chip dividend stocks. When former parent company Altria Group spun off Philip Morris International, or PMI for short, the Swiss-based tobacco company focused primarily on selling Marlboro and other cigarette brands outside the United States.

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Since going public, however, PMI has diversified heavily into "smokeless" tobacco and nicotine products. First, the company launched its IQOS heated tobacco product. Then, after acquiring Swedish Match, PMI became the company behind the popular Zyn line of nicotine pouches. Last year, smoke-free products produced net revenues of $16.9 billion, representing 41.5% of total net sales.

Currently, Philip Morris International shares sport a moderately high 3.1% forward dividend yield. The stock has 18 years of consecutive dividend growth under its belt. I wouldn't rule out its potential to become one of the Dividend Kings, as smokers continue to transition from cigarettes to smoke-free cigarettes and nicotine product alternatives.

Annual dividend growth came in at 6.4% last year. Further mid-single-digit growth could persist, especially as earnings continue to grow at a double-digit clip.

Recognition reinforces the growing consumer relevance of IQOS and the strength of Philip Morris International’s smoke-free vision

STAMFORD, Conn.--(BUSINESS WIRE)--Philip Morris International’s (PMI) (NYSE: PM) IQOS, the #1 tobacco heating system1, has been listed for the first time as one of the top 100 most valuable brands in the world in Kantar’s BrandZ 2026 Most Valuable Global Brands. This ranking solidifies IQOS’s global momentum and its emergence as a culturally relevant, iconic brand for adult nicotine users seeking better alternatives to cigarettes.

According to the BrandZ 2026 Most Valuable Global Brands, IQOS achieved a ranking of #74 globally.

With more than 35 million IQOS users worldwide—most of whom have fully switched away from cigarettes2—the brand continues to lead from the front and champion in a smoke-free era through science-backed innovation and consumer-centric design. Within 10 years of inception, IQOS surpassed $10 billion in annual net revenues, reaching this milestone faster than some of the world’s most recognized technology companies—and making up the large majority of Philip Morris International’s smoke-free business which reached close to $17 billion in net revenues in 2025.

“This milestone is a powerful validation of the journey we are on,” said Oggie Kapetanovic, President Heat-Not-Burn Products at Philip Morris International. “IQOS is not only the world’s leading smoke-free brand - it is becoming a truly iconic brand, built on science, innovation, and consumer trust. This recognition reaffirms IQOS’s continued growth and its pivotal role in transforming the industry. It inspires us to go further, faster, in delivering better alternatives for adults who would otherwise smoke.”

BrandZ charts the way in which global brands have continued to evolve and innovate. Now in its 21st edition, it spotlights the importance of building meaningful difference where a brand meets consumer needs, stands out from competitors and remains top-of-mind in its sector for a prolonged period.

“The brand era has changed. People now interact with brands in thousands of different ways. Many of these are shaped by AI, like personalized feeds or LLMs that influence what we see. Machines are increasingly surfacing and prioritizing content. That means brands need to work harder than ever to stand out as meaningful and different,” said Martin Guerrieria, Head of Kantar BrandZ.

IQOS’s inclusion in the Kantar Top 100 for the first time underscores its growing role beyond product innovation — positioning the brand at the intersection of technology, design, and culture, aiming to meet the preferences of adult nicotine users. This recognition marks another important step toward achieving a future where cigarettes can become obsolete.

Other notable brands featured in this year’s BrandZ 2026 global rankings include Google, Claude and Chinese-based companies like Alibaba and Xiaomi, highlighting industry leaders driving global brand value. Kantar BrandZ is a global ranking that assesses brand value by combining financial data and extensive brand equity research, offering an in-depth view of over 22,000 brands in 54 markets.

IQOS is not risk-free and provides nicotine, which is addictive. Only for use by adults who would otherwise smoke or use nicotine products.

Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch and e-vapor products. Our smoke-free products are available for sale in over 105 markets, and as of December 31, 2025, PMI estimates they were used by over 43 million legal-age consumers around the world, many of whom have moved away from cigarettes or significantly reduced their consumption. The smoke-free business accounted for 43% of PMI’s first-quarter 2026 total net revenues. Since 2008, PMI has invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumables and General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness areas. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.

Forward-Looking and Cautionary Statements

This press release contains projections of future results and goals and other forward-looking statements, including statements regarding business plans and strategies. Achievement of future results is subject to risks, uncertainties, and inaccurate assumptions. In the event that risks or uncertainties materialize, or underlying assumptions prove inaccurate, actual results could vary materially from those contained in such forward-looking statements. Pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, PMI is identifying important factors that, individually or in the aggregate, could cause actual results and outcomes to differ materially from those contained in any forward-looking statements made by PMI.

PMI’s business risks include: excise tax increases and discriminatory tax structures; increasing marketing and regulatory restrictions that could reduce our competitiveness, eliminate our ability to communicate with adult consumers, or ban certain of our products in certain markets or countries; health concerns relating to the use of tobacco and other nicotine-containing products and exposure to environmental tobacco smoke; litigation related to tobacco and/or nicotine use and intellectual property; intense competition; the effects of global and individual country economic, regulatory and political developments, natural disasters and conflicts; the impact and consequences of Russia’s invasion of Ukraine; changes in adult smoker behavior; the impact of natural disasters and pandemics on PMI’s business; lost revenues as a result of counterfeiting, contraband and cross-border purchases; governmental investigations; unfavorable currency exchange rates and currency devaluations, and limitations on the ability to repatriate funds; adverse changes in applicable corporate tax laws; adverse changes in the cost, availability, and quality of tobacco and other agricultural products and raw materials, as well as components and materials for our electronic devices; and the integrity of its information systems and effectiveness of its data privacy policies. PMI’s future profitability may also be adversely affected should it be unsuccessful in its attempts to introduce, commercialize, and grow smoke-free products or if regulation or taxation do not differentiate between such products and cigarettes; if it is unable to successfully introduce new products, promote brand equity, enter new markets or improve its margins through increased prices and productivity gains; if it is unable to expand its brand portfolio internally or through acquisitions and the development of strategic business relationships; if it is unable to attract and retain the best global talent; or if it is unable to successfully integrate and realize the expected benefits from recent transactions and acquisitions. Future results are also subject to the lower predictability of our smoke-free products’ performance.

PMI is further subject to other risks detailed from time to time in its publicly filed documents, including PMI’s Annual Report on Form 10-K for the fourth quarter and year ended December 31, 2024 and the Quarterly Report on Form 10-Q for the second quarter ended June 30, 2025. PMI cautions that the foregoing list of important factors is not a complete discussion of all potential risks and uncertainties. PMI does not undertake to update any forward-looking statement that it may make from time to time, except in the normal course of its public disclosure obligations.

About Kantar

Kantar is the world’s leading marketing data and analytics business. We deliver the intelligence needed to power brand growth.

We provide the signals that help organizations act quickly and confidently. We empower brands to make effective marketing decisions based on predictive evidence. And we help them craft powerful growth strategies rooted in the connection between consumers, brands and enterprise value. All this is powered by our uniquely robust human and synthetic data, our unrivalled IP, our AI-native platform and the team of global brand experts that bring this all together.

About Kantar BrandZ

Kantar BrandZ is the global currency when assessing brand value, quantifying the contribution of brands to business’ financial performance. Kantar’s annual global and local brand valuation rankings combine rigorously analyzed financial data, with extensive brand equity research. Since 1998, BrandZ has shared brand-building insights with business leaders based on interviews with 4.6 million consumers, for over 22,000 brands in 54 markets. Discover more about Kantar BrandZ here.

During the depths of the Great Recession in 2009, Warren Buffett said: "Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it's imperative that we rush outdoors carrying washtubs, not teaspoons."

In other words, market crashes should be seen as great opportunities to buy the best stocks at discounted prices. If that happens, I'd scoop up more shares of Walmart (WMT +0.44%), Realty Income (O +1.31%), and Philip Morris International (PM +1.95%) without any hesitation.

Image source: Getty Images.

Walmart is an evergreen retailer Walmart, the world's largest brick-and-mortar retailer with over 10,800 stores and clubs across 19 countries, has raised its dividend for 53 consecutive years. Its forward yield of 0.8% might seem low today, partly because its stock has soared 155% over the past five years, but it has consistently raised its payout through wars, recessions, and other economic downturns.

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Over the years, Walmart upgraded its e-commerce marketplace, used its stores to fulfill online orders, rolled out more curbside and same-day delivery options, matched Amazon's prices, and launched its own Walmart+ service to challenge Amazon Prime.

Walmart also expanded overseas, opened more Sam's Club stores to compete against Costco, and even launched its own advertising business across its physical stores, mobile app, and connected TVs. All of those efforts kept Walmart relevant as the retail sector faced seismic shifts in consumer spending and other existential challenges.

From fiscal 2026 (which ended this January) to fiscal 2029, analysts expect Walmart's revenue and EPS to grow at CAGRs of 5% and 9%, respectively. Those growth rates are steady, but its stock doesn't look cheap at 37 times next year's earnings. If a market crash finally compresses those valuations, I'd gladly buy some shares of this evergreen retail stock.

Realty Income is a top-notch REIT Realty Income -- which owns more than 15,500 commercial properties across the U.S., the U.K., and Europe -- is one of the world's largest real estate investment trusts (REITs). As an REIT, it leases its properties to businesses and must pay out more than 90% of its taxable income to its investors as dividends to maintain a lower tax rate.

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Ever since its 1994 IPO, Realty Income's occupancy rate has stayed above 96%. That's because it primarily leases its properties to recession-resistant businesses such as convenience stores, drugstores, and discount retailers. In 2025, its occupancy rate rose 20 basis points to 98.9%, even as macro headwinds drove many of its top tenants to close some stores.

Realty Income is also one of the few REITs that pays monthly dividends. It's raised its payout 134 times since its IPO, and it currently pays an attractive forward yield of 5.2%. It expects its adjusted funds from operations (AFFO) per share, which rose 2% in 2025, to grow another 3%-4% to $4.41-$4.44 in 2026. That will easily cover its forward dividend rate of $3.25.

Realty's stock already looks cheap at 14 times this year's AFFO per share, but a market crash could make its stock even cheaper while significantly boosting its yield. Therefore, I'd definitely accumulate more shares of this top-notch REIT if its stock stumbles.

PMI is an evolving tobacco company Philip Morris International, one of the world's largest tobacco companies, was spun off from Altria in 2008. After that split, PMI generated nearly all of its revenue overseas, while Altria remained in the U.S. market.

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PMI might seem like a risky stock to buy as adult smoking rates decline worldwide. Still, it constantly raises its cigarette prices, cuts costs, and sells smoke-free products (including its iQOS heated tobacco products, e-cigarettes, and nicotine pouches) to offset that pressure.

In 2025, PMI's smoke-free revenue grew 14% organically and accounted for almost 43% of its top line. From 2025 to 2028, analysts expect its revenue and EPS to grow at CAGRs of 7% and 10%, respectively, as it continues to expand its smoke-free portfolio.

PMI's stock looks reasonably valued at 25 times this year's earnings, and it pays an attractive forward yield of 3.1%. However, a market crash could reduce its valuations and make its dividend even more attractive for income-oriented investors. Therefore, I'd buy more shares of this defensive blue chip dividend stock if the broader market cools off.

On June 01, 2026, we delve into the DCF analysis for Philip Morris International Inc PM , a company that has shown varied price performance recently. The stock has experienced a 1-week decline of 6.1%, a 1-month increase of 9.0%, a year-to-date rise of 11.6%, and a modest 3.3% gain over the past year.

DCF Earnings-based intrinsic value of $88.40 vs current price of $177.38 (margin of safety: -96.8%) DCF FCF-based intrinsic value of $79.01 vs current price (second opinion: -124.5% margin of safety) GF Score™ of 84/100 indicates a high reliability of the DCF inputs What Is PM Worth? DCF Earnings-Based Model The DCF earnings-based model for Philip Morris International Inc utilizes a two-stage growth approach. The first stage anticipates earnings growth for the next ten years, followed by a terminal phase that reflects a more stable growth rate. Below are the key assumptions used in this model:

Parameter Value Current EPS (TTM, excl. non-recurring) $7.81 10-Year Growth Rate 4.7% 10-Year Treasury Rate 4.47% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we project that EPS will grow at a rate of 4.7% per year for the next ten years, discounted at a rate of 11%. The value derived from this growth stage is $57.44 per share. Following this, in the terminal phase (years 11-20), we assume a slower growth rate of 4%, also discounted at 11%, yielding a terminal stage value of $30.96 per share.

Stage Description Value Growth Stage (Years 1-10) EPS growing at 4.7%, discounted at 11% $57.44 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $30.96 Intrinsic Value Growth + Terminal $88.40 The calculated intrinsic value of $88.40 is significantly lower than the current market price of $177.38, indicating that the stock is modestly overvalued with a margin of safety of -96.8%. It is important to note that GuruFocus utilizes EPS without non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further calculations, you can visit the PM DCF Calculator.

What Does the Free Cash Flow DCF Say? In addition to the earnings-based DCF model, we also consider the free cash flow (FCF) DCF model. The intrinsic value derived from the FCF-based model is $79.01 per share. When comparing this to the earnings-based intrinsic value of $88.40, we find that both models indicate that the stock is significantly overvalued, with a margin of safety of -124.5% for the FCF model.

How Does GF Value™ Compare to the DCF Models? The GF Value™ of Philip Morris International Inc is calculated at $142.38, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings-based, DCF FCF-based, and GF Value™—concur that the stock is overvalued at its current price. For more details, visit the GF Value™ page.

What Does PM's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have historically generated higher long-term returns (backtested from 2006-2021). Below is a summary of PM's GF Score™ metrics:

Metric Rating GF Score™ 84/100 Financial Strength 5/10 Profitability 9/10 Growth 8/10 Valuation 6/10 Momentum 4/10 With a predictability rank of 0/5 stars, the reliability of the DCF model for PM is low, suggesting that caution should be exercised when interpreting these valuations. For more information, visit the PM stock page.

Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as PM, tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in this analysis is a simplifying assumption that may not fully capture future performance.

What This Means for Investors In summary, all three valuation models—DCF earnings-based, DCF FCF-based, and GF Value™—indicate that Philip Morris International Inc is overvalued at its current price of $177.38. The intrinsic values derived from the DCF models are significantly lower, suggesting that investors should approach this stock with caution. For the full DCF analysis, visit the PM DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is PM's intrinsic value based on DCF?

Answer: earnings-based $90.13, FCF-based $79.01

Is PM overvalued or undervalued?

Answer: Both DCF models and GF Value™ consensus indicate PM is overvalued.

How reliable is the DCF model for PM?

Answer: The predictability rank of 0/5 suggests low reliability for the DCF model.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Regulatory News: Philip Morris International Inc.'s (PMI) (NYSE: PM) Group CEO PMI, Jacek Olczak, will address investors today at the 2026 dbAccess Global Co

Packages of Marlboro cigarettes produced by Philip Morris International are seen at the grocery store in Warsaw, Poland May 29, 2024. REUTERS/Kacper Pempel/File Photo Purchase Licensing Rights, opens new tab

CompaniesJune 2 (Reuters) - Philip Morris International (PM.N), opens new tab cut its annual profit forecast on Tuesday citing ​currency swings, though CEO Jacek Olczak said other risks to ‌achieving its outlook such as rising energy prices were manageable.

Olczak, speaking at the Deutsche Bank global consumer conference, said recent U.S. FDA moves to relax enforcement ​on unauthorized vaping and nicotine pouches was a "net positive," and ​reduces regulatory uncertainty for Zyn and should support category ⁠growth.

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Shares of the tobacco giant were up about 1% in morning ​trading.

Philip Morris now expects 2026 adjusted earnings per share of $8.31 to $8.46, ​a growth of 10.2% to 12.2% from 2025 levels, and lower than a prior forecast range of $8.36 to $8.51. Analysts were expecting a profit of $8.41 per share.

CEO ​Olczak said the company has more flexibility than initially expected ​this year to offset certain headwinds.

Company said the newly released Zyn Ultra will be priced ‌at ⁠a lower cost per pouch than its flagship range, in a move aimed at reducing its steep price premium and improving competitiveness.

PMI expects a non-cash impairment charge of about $500 million owing to the ​value of its ​investment in ⁠a Canadian affiliate RBH in the second quarter of 2026.

In April, the company lowered its 2026 adjusted profit ​forecast amid regulatory uncertainty over its Zyn nicotine pouches ​and ⁠rising competition in tobacco products.

Philip Morris has been expanding across smoke-free products including heated tobacco device IQOS, vapes and oral nicotine pouches.

It said ⁠recent price ​increases in Japan, driven by excise ​tax changes, have weighed on category growth but so far have not materially hurt ​its market share.

Reporting by Savyata Mishra in Bengaluru; Editing by Shailesh Kuber

Our Standards: The Thomson Reuters Trust Principles., opens new tab

A new study detailing the scale of the illicit cigarette trade in the European Union (EU) shows that consumption of black-market cigarettes rose more than 7% year-on-year in 2025, reaching levels not seen in over a decade, with counterfeit cigarettes playing an increasingly significant role across member states. Philip Morris International (PMI) (NYSE: PM) reiterates its call for a coordinated response to illicit trade in Europe, built on evidence-based regulation and strengthened cooperation.

According to the 20th edition of the study “Illicit cigarette and heated tobacco consumption, and oral nicotine share in Europe”, which was conducted by KPMG LLP on behalf of Philip Morris Products S.A., illicit cigarettes in the EU accounted for more than one in ten cigarettes for the first time since 2014. In 2025, illicit volumes reached 41.8 billion in the EU—representing 10.3% of total consumption—resulting in an estimated €16.7 billion in lost tax revenues.

Across the 38 European countries included in the study, illicit consumption reached 55.3 billion cigarettes, corresponding to an estimated €22.4 billion in state budget revenue losses.

A structural shift: from contraband flows to “closer-to-market” counterfeits

The illicit market is undergoing a fundamental transformation: “Made in EU” counterfeit cigarettes are increasingly displacing traditional East-to-West contraband flows. Supply chains are becoming faster and harder to trace, and operations are moving closer to end consumers - especially in Western European countries such as France, Belgium, and the Netherlands, which are becoming central hubs for illicit tobacco and nicotine products.

Counterfeits have become the largest source of illicit cigarettes in the EU, reaching 18.3 billion and accounting for 44% of total illicit consumption in 2025. Counterfeit volumes increased more than 20% year-on-year, highlighting organized crime’s ability to rapidly adapt production and distribution models to reduce detection risks.

“The data is clear: counterfeits have become the primary engine of the illicit cigarette market in the EU, supported by criminal supply chains designed to bring fake products to consumers in high-value markets, undermining the European economy and fueling broader illicit activity,” said Christos Harpantidis, Group Chief Corporate Affairs Officer, Philip Morris International. “It also underscores persistent structural vulnerabilities across regulation, enforcement, and judicial follow-through that create space for illicit trade to grow - at a time when many EU member states are under broader security and economic pressure, from inflation and competitiveness challenges to rising budget demands on security and defense due to geopolitical fragmentation. Closing these gaps in Europe requires coordinated action: stronger law enforcement, public-private cooperation and a focus on regulation that is balanced, evidence-based, and enforceable in practice,” Harpantidis added.

Estimates show that Europe’s tobacco and nicotine value chain supports over 2.1 million jobs and generates €224 billion in value - comparable to the EU’s 17th largest economy. With nearly €24 billion in annual exports, it is a significant industrial ecosystem, yet increasingly affected by illicit trade amid economic uncertainty and need for competitiveness in Europe. Addressing this requires pragmatic, evidence-based regulation and stronger cooperation, while supporting investment and innovation in Europe.

“Illicit trade is becoming more sophisticated, localized, and increasingly industrialized. It not only erodes legitimate business activity but also fuels criminal networks that operate with speed, scale, and impunity, discouraging investment, innovation and governments’ ability to deliver on public health and fiscal objectives,” said Yann Guérin, Group Chief Legal Officer, Philip Morris International.

Western Europe at the forefront of this trend

Illicit consumption is increasingly concentrated in major Western European countries—most notably France, Belgium, and the Netherlands—amplifying fiscal pressures and enforcement challenges as illicit penetration rises.

France remains Europe’s largest illicit market, at a 41.4% illicit share (20.5 billion cigarettes). Counterfeits alone accounted for almost 9.7 billion cigarettes (around 19% of total consumption). France saw the largest increase in illicit cigarette consumption across Europe in 2025. Belgium recorded an illicit share of nearly 25% (more than 2 billion cigarettes). The Netherlands rose above 22% illicit share (2.1 billion cigarettes), returning to levels last observed around 2006. More broadly, six EU member states now record illicit shares above 20%, underscoring the scale and concentration of the issue. Outside the EU, the United Kingdom remains the second-largest illicit cigarette country in the study, with volumes now surpassing 7 billion, including 3.5 billion counterfeit cigarettes.

What works: evidence-based policy, not extremes

Not all markets move in the same direction. Some countries have achieved sustained declines through a balanced policy mix combining predictable fiscal approaches, proportionate regulation, and consistent enforcement.

Greece (14.1% illicit share; 1.9 billion cigarettes) recorded one of the largest year‑on‑year declines - 3.4 percentage points. This marks a significant shift from previous years, when illicit levels consistently remained above 20%, highlighting a notable improvement in recent performance. Ukraine (15.9% illicit share; 5.1 billion cigarettes) saw illicit volumes decline by nearly 1 billion cigarettes year‑on‑year. This reduction is particularly notable given the highly challenging operating and security environment, pointing to sustained enforcement efforts and market resilience. “The lesson we derive from the situation in Europe is that not one single lever solves the problem of illicit trade; it is that a well-coordinated set of measures does,” said Massimo Andolina, President, Europe Region, Philip Morris International. “Countries that coordinate a proportionate, evidence-based approach to regulatory and tax frameworks with a disciplined effort of enforcement demonstrate that illicit trade of nicotine products can be reduced to the benefit of consumers, public finances, and the fight against crime. On the contrary, countries that promote excessive tax increases, or, even worse, product bans, such as France and the Netherlands, see illicit trends worsening, public tax collection suffers, consumers gain access to uncontrolled products, and crime thrives. It is not the evidence that is now missing, but rather the desire to act rationally and decisively,” he added.

“Sustained public-private collaboration, combining effective law enforcement with robust data, expertise, information sharing, and operational capabilities, is essential to help identify, investigate, and dismantle counterfeit networks and enable authorities to stay ahead of illicit operators, moving beyond reactive measures toward a more proactive, intelligence-led approach,” added Guérin.

Heated tobacco and oral nicotine products

For the second consecutive year, the report also covered illicit consumption of heated tobacco products in selected European markets. It found contraband represented 1.2% of total heated tobacco consumption—significantly lower than in cigarettes—with Germany, Austria, and the Netherlands among the most impacted countries. No counterfeit heated tobacco flows were identified. However, the presence of contraband underscores that, while the scale remains limited, no product category is immune to illicit trade.

While electronic heating devices are not within the scope of the study, available PMI internal analyses and third‑party research similarly indicate no meaningful presence of contraband or counterfeit activity in this category to date.

For the first time, the study also assessed oral nicotine products in selected countries. It found that in markets where nicotine pouches are banned or highly restricted, survey data indicate significant availability—often involving counterfeit, non-compliant or non-domestic products—suggesting widespread consumer access despite legal restrictions. The highest shares of products not eligible for sale—with the potential to reach a substantial number of consumers—were observed in the Netherlands, Germany, and Belgium.

“Philip Morris International believes policymakers in Europe should apply evidence-based, risk-proportionate regulatory approaches across all nicotine product categories - designing rules that protect consumers, support law enforcement, and avoid unintended consequences that shift demand toward the black market,” Christos Harpantidis added. “This is particularly important as evidence from other nicotine categories, including pouches and e‑cigarettes, indicates the emergence of widespread illicit activity in some parts of Europe - reinforcing the need for regulatory approaches that are both effective and grounded in real-world conditions.”

As Philip Morris International advances towards a smoke-free future, it continues to strengthen supply chain controls and cooperate with law enforcement and other stakeholders to combat counterfeiting and smuggling of tobacco and nicotine products.

The full study results, country profiles, detailed study methodology, and country-level findings are available here.

For more information about PMI’s illicit trade prevention efforts, visit PMI.com.

Note to editors

Definitions of illicit cigarette categories, as detailed in the KPMG report:

Counterfeit: “Cigarettes that are illegally manufactured and sold by a party other than the original trademark owner.” Illicit whites: “Cigarettes that are usually manufactured legally in one country/market but which the evidence suggests have been smuggled across-borders during their transit to the destination market under review where they have limited or no legal distribution and are sold without payment of tax.” C&C: “Counterfeit and contraband, including illicit whites. Contraband refers to genuine products that have been either bought in a lower-tax country and which exceed legal border limits or acquired without taxes for export purposes to be illegally re-sold (for financial profit) in a higher priced market.” Other C&C: “Other C&C comprises contraband which does not fall within the Illicit Whites definition. It is often Duty Paid product from both EU27 and non-EU27 countries. There may also be counterfeit of brands that are not trademark-owned by participant manufacturers.” Not eligible for sale products: Products that are not eligible for sale in the market in which the product is consumed. This encompasses Non-Domestically labelled products, domestically labelled products which do not comply with regulations in the market of study, and Counterfeit products. Philip Morris International: A Global Smoke-Free Champion

Philip Morris International is a leading international consumer goods company, actively delivering a smoke-free future and evolving its portfolio for the long term to include products outside of the tobacco and nicotine sector. The company’s current product portfolio primarily consists of cigarettes and smoke-free products, including heat-not-burn, nicotine pouch and e-vapor products. Our smoke-free products are available for sale in over 105 markets, and as of December 31, 2025, PMI estimates they were used by over 43 million legal-age consumers around the world, many of whom have moved away from cigarettes or significantly reduced their consumption. The smoke-free business accounted for 43% of PMI’s first-quarter 2026 total net revenues. Since 2008, PMI has invested over $16 billion to develop, scientifically substantiate and commercialize innovative smoke-free products for adults who would otherwise smoke, with the goal of completely ending the sale of cigarettes. This includes the building of world-class scientific assessment capabilities, notably in the areas of pre-clinical systems toxicology, clinical and behavioral research, as well as post-market studies. Following a robust science-based review, the U.S. Food and Drug Administration has authorized the marketing of Swedish Match’s General snus and ZYN nicotine pouches and versions of PMI’s IQOS devices and consumables - the first-ever such authorizations in their respective categories. Versions of IQOS devices and consumablesand General snus also obtained the first-ever Modified Risk Tobacco Product authorizations from the FDA. With a strong foundation and significant expertise in life sciences, PMI has a long-term ambition to expand into wellness areas. References to “PMI”, “we”, “our” and “us” mean Philip Morris International Inc., and its subsidiaries. For more information, please visit www.pmi.com and www.pmiscience.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260603799047/en/

Philip Morris International delivered strong FQ1 2026 results, with EPS of $1.96 and 9% YoY revenue growth, mostly driven by smoke-free products. But growth potential from smoke-free offerings, notably IQOS and ZYN, is tempered by declining combustible product sales. Despite the mixed dynamics, PM trades at a significant P/E premium to the sector and historical averages.

PM's leadership in smoke-free products, profitable growth trends, and secure dividend prospects justify a Buy on pullbacks, especially for swing traders within the $150s–$180s range. Smoke-free revenues now comprise 43% of sales, with IQOS/ZYN/VEEV delivering double-digit volume growth in select regions, supporting the management's adj EPS growth target at 3Y CAGR of +10%. These may very well temper the risks from the declining cigarette volumes amid price sensitivity, attributed to the likely to remain higher inflationary pressure in the intermediate term.

© ssuaphoto / iStock via Getty Images

Occidental Petroleum (NYSE:OXY | OXY Price Prediction) and Exxon Mobil (NYSE:XOM) just closed earnings chapters that read like opposite playbooks. Occidental wrapped fiscal 2025 by selling its chemicals arm to Berkshire and shrinking into a focused driller.

Exxon opened Q1 2026 by loading its first Golden Pass LNG cargo and buying back nearly $5 billion in stock. With WTI at $101.56, the comparison matters.

Shrinking Pure-Play Meets Scaling Supermajor Occidental’s Q4 was about subtraction. Adjusted EPS came in at $0.31 on revenue of $5.42 billion, with a $68 million net loss tied to the OxyChem sale. Production beat guidance at 1,481 Mboed, and the Permian carried the quarter.

CEO Vicki Hollub framed the moment plainly: “With our enhanced balance sheet following the sale of OxyChem, we remain focused on generating resilient free cash flow.” The Berkshire deal cut principal debt by $5.8 billion to $15 billion, and the dividend rose 8% to $0.26 per share.

Exxon’s quarter was about scale absorbing shocks. Adjusted EPS hit $1.16, beating the $1.01 consensus by 15.15%, while revenue of $85.14 billion landed roughly in line. Headline net income of $4.18 billion absorbed $3.88 billion in mark-to-market derivative timing and $706 million in Middle East disruption losses. Underlying earnings were $8.77 billion. Guyana cleared 900,000 gross barrels per day, a record.

A Deleveraging Story vs. a Compounding Machine Lens Occidental Exxon Core bet Permian focus, pay down debt Guyana, Permian, LNG, refining Q1 2026 buybacks None highlighted $4.9 billion Forward P/E 11x 14x Dividend yield 1.64% 2.56% Hollub is simplifying. Woods is compounding. Exxon’s structural cost savings since 2019 reached $15.6 billion, with a $20 billion buyback planned for 2026 and 43 consecutive years of dividend growth. Occidental’s beta of 0.17 understates its operating leverage to crude. That low forward multiple is the market pricing a debt overhang that is now meaningfully smaller.

The Next Tests Are LNG Cargoes and Permian Cash I am watching Golden Pass closely. Train 1’s first cargo loaded in April 2026, lifting U.S. LNG exports roughly 5% versus 2025. If Hammerhead and Yellowtail keep Guyana ramping, Exxon’s earnings power widens regardless of Brent’s path.

For Occidental, the question is whether free cash flow at $59 to $65 per barrel realized crude can fund the dividend, fund Permian capex, and keep chipping at the remaining debt. The stock has already moved: shares are up 48.34% year to date, with Exxon up 36.89%.

Exxon Offers Quality, Occidental Offers Torque For the next twelve months, the setups diverge sharply. The combination of advantaged barrels, refining cash, and the $20 billion buyback gives me a clearer line of sight to returns even if oil cools from $101.

Occidental fits a different investor. If you want torque to crude and believe Hollub’s simpler company deserves a re-rate, the 11x forward multiple is interesting, especially with debt at $15 billion rather than $20 billion. Both stories weaken if WTI drifts back toward the $55 low printed last December. Quality compounds. Pure-play torque cuts both ways.

Occidental Petroleum and TotalEnergies' EPS revisions, ROE, debt and dividends stack up differently as both expand oil, LNG and low-carbon initiatives.

Shares of Occidental Petroleum (OXY +1.93%) rose on Monday along with oil prices as peace talks between the U.S. and Iran faltered.

Image source: Getty Images.

Disruption in the Middle East Oil prices climbed about 5%, following reports that negotiations had broken down due to the ongoing conflict in Lebanon. Iran reportedly said it would renew its efforts to block shipping traffic through the Strait of Hormuz, a key waterway through which about 20% of global crude oil and liquified natural gas (LNG) passes.

Iran and its allies also reportedly threatened to disrupt other vital shipping lanes, including the Bab al-Mandeb Strait located between Yemen's southern coast and eastern Africa. Ships traveling through the Suez Canal pass through the Bab al-Mandeb Strait on their way to the Indian Ocean.

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Industry experts have warned that energy prices could skyrocket if these shipping disruptions are not resolved. ExxonMobil senior vice president Neil Chapman believes oil prices could reach $160 per barrel in the coming weeks as inventories are depleted.

Alternative energy supplies are needed In response to the shortfall in Middle East energy shipments, governments in Europe and Asia are turning to U.S. producers for their oil and LNG needs. U.S. oil exports soared over 30% to 5.2 million barrels per day in April, compared to before the conflict in Iran broke out in February.

As one of the largest independent oil and gas producers in the U.S., Occidental Petroleum is helping to meet the world's need for dependable energy supplies.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Occidental Petroleum. The Motley Fool has a disclosure policy.

Occidental Petroleum (OXY - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this oil and gas exploration and production company have returned -2.2%, compared to the Zacks S&P 500 composite's +6.3% change. During this period, the Zacks Oil and Gas - Integrated - United States industry, which Occidental falls in, has lost 4.2%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Occidental is expected to post earnings of $1.58 per share for the current quarter, representing a year-over-year change of +305.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +35.1%.

The consensus earnings estimate of $5.5 for the current fiscal year indicates a year-over-year change of +148.9%. This estimate has changed +21% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $3.92 indicates a change of -28.9% from what Occidental is expected to report a year ago. Over the past month, the estimate has changed +16%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Occidental.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Occidental, the consensus sales estimate for the current quarter of $6.73 billion indicates a year-over-year change of +4.2%. For the current and next fiscal years, $24.81 billion and $23.94 billion estimates indicate -2.5% and -3.5% changes, respectively.

Last Reported Results and Surprise HistoryOccidental reported revenues of $5.11 billion in the last reported quarter, representing a year-over-year change of -25.3%. EPS of $1.06 for the same period compares with $0.87 a year ago.

Compared to the Zacks Consensus Estimate of $5.5 billion, the reported revenues represent a surprise of -7.03%. The EPS surprise was +63.08%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Occidental is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Occidental. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.

A month has gone by since the last earnings report for Occidental Petroleum (OXY - Free Report) . Shares have added about 8.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Occidental due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Occidental Petroleum Corporation before we dive into how investors and analysts have reacted as of late.

Occidental Tops Q1 Earnings Estimates on Strong Production Volumes

Occidental Petroleum Corporation reported first-quarter 2026 earnings of $1.06 per share, which outpaced the Zacks Consensus Estimate of 65 cents by 63.1%. The bottom line also rose 21.8% year over year.

 GAAP earnings in the reported quarter were $3.13 per share compared with the earnings of 77 cents in the year-ago quarter.

Total Revenues of OXYTotal revenues were $5.11 billion, which missed the Zacks Consensus Estimate of $5.5 billion by 7%. The top line also lagged 25.3% year over year due to lower contributions from its Oil & Gas segment.

OXY’s Q1 Segmental DetailsOil and Gas revenues totaled $4.98 billion in the reported quarter, down 12.5% year over year.

Midstream & Marketing revenues of $397 million jumped 129.5% year over year.

Production & Sales at OXYTotal production volume was 1,426 thousand barrels of oil equivalent per day (Mboe/d). The metric surpassed the company’s guided range of 1,385-1,425 Mboe/d.

Total sales volume was 1,428 Mboe/d, up 2.7% from the year-ago period.

OXY’s Realized PricesRealized prices of crude oil dropped 1.6% year over year to $69.91 per barrel on a worldwide basis. Realized natural gas liquid prices fell 26.8% year over year to $18.99 per barrel globally. Natural gas prices decreased 58.3% year over year to $1.01 per thousand cubic feet.

Highlights of OXY’s Q1 ReleaseOccidental advanced debt reduction priorities, repaying $7.1 billion of principal debt through May 5, 2026, reducing principal debt to $13.3 billion and progressing toward the $10 billion milestone.

Occidental reported strong first-quarter production due to robust contributions from Permian assets. Gulf of America’s average daily production volumes in the first quarter were 138 Mboe/d, up 14% year over year, which also contributed to the overall strong volumes.

Sequential improvement in the Midstream and Marketing segment’s performance was due to higher crude margins related to the timing impact of crude sales, higher gas margins from transportation capacity optimizations and higher sulfur prices at Al Hosn.

Total costs and reduction in the first quarter of 2026 were $4.86 billion, up 3.9% from $4.68 billion in the year-ago quarter. Interest and debt expenses increased 39.4% to $432 million from $310 million in the year-ago quarter, a positive impact of the ongoing debt reduction.

Financial Position of OXYAs of March 31, 2026, Occidental had cash and cash equivalents of $3.81 billion compared with $1.97 billion as of Dec. 31, 2025.

Occidental had long-term debt (net of current portion) of $15.25 billion as of March 31, 2026 compared with $20.62 billion as of Dec. 31, 2025. The company retired $15.6 billion in debt in the last 22 months, which lowered annual interest expenses by $830 million.

OXY generated $3.25 billion of operating cash flow in the first three months of 2026 compared with $2.77 billion in the same period of 2025. Total capital expenditure was $1.55 billion in the first three months of 2026 compared with $1.68 billion in the year-ago period.

OXY’s GuidanceFor the second quarter of 2026, OXY expects production in the band of 1,390-1,430 Mboe/d. Output from the Permian Resources segment is anticipated at 783-803 Mboe/d. Occidental expects international production volumes for the second quarter of 2026 to be in the range of 205-211 Mboe/d.

Exploration expenses are estimated to be $75 million and interest expenses to be $185 million in the second quarter of 2026. For 2026, OXY plans to bring online 460-510 wells in the Permian region and 150-170 wells in the Rockies region.

Capital expenditure for 2026 is projected to be in the range of $5.5-$5.9 billion.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 45.63% due to these changes.

VGM ScoresCurrently, Occidental has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Occidental has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerOccidental belongs to the Zacks Oil and Gas - Integrated - United States industry. Another stock from the same industry, Antero Midstream Corporation (AM - Free Report) , has gained 0.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Antero Midstream reported revenues of $314.21 million in the last reported quarter, representing a year-over-year change of +7.9%. EPS of $0.25 for the same period compares with $0.25 a year ago.

For the current quarter, Antero Midstream is expected to post earnings of $0.28 per share, indicating a change of +7.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.8% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Antero Midstream. Also, the stock has a VGM Score of D.

The three biggest U.S. oil majors are sending mixed signals at current prices: Chevron (NYSE:CVX | CVX Price Prediction) at $185.82 looks constructive, Exxon Mobil (NYSE:XOM) at $146.60 looks constructive, and Occidental Petroleum (NYSE:OXY) at $55.47 warrants patience.

After reaching an important support level, APA (APA - Free Report) could be a good stock pick from a technical perspective. APA surpassed resistance at the 50-day moving average, suggesting a short-term bullish trend.

The 50-day simple moving average, which is one of three major moving averages, is widely used by traders and analysts to establish support and resistance levels for a range of securities. Because it's the first sign of an up or down trend, the 50-day is considered to be more important.

APA could be on the verge of another rally after moving 9.1% higher over the last four weeks. Plus, the company is currently a Zacks Rank #1 (Strong Buy) stock.

Once investors consider APA's positive earnings estimate revisions, the bullish case only solidifies. No estimate has gone lower in the past two months for the current fiscal year, compared to 7 higher, and the consensus estimate has increased as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on APA for more gains in the near future.

May 18, 2026 13:00 ET  | Source: Apache Corporation

HOUSTON, May 18, 2026 (GLOBE NEWSWIRE) -- Apache Corporation, a subsidiary of APA Corporation (Nasdaq: APA), today announced the opening of applications in the U.S. for the Apache Corporation Tree Grant Program’s 2026-2027 planting season.

Since 2005, the program has partnered with more than 1,000 nonprofit organizations and government agencies across the company’s U.S. operating areas. In 2023, the program surpassed the milestone of donating more than 5 million trees to U.S. partners and expanded internationally, launching a similar program in Scotland, where the company also operates.

“For more than two decades, our Tree Grant Program has reflected our long-term commitment to the communities and environments where we live and work,” said John J. Christmann IV, Apache’s chief executive officer. “Each planting season builds on that legacy, expanding access to green space, supporting restoration efforts and partnering with organizations that are making a meaningful difference on the ground. We’re proud to continue growing this program alongside our partners and investing in projects that will benefit communities for years to come.”

The program is open to U.S.-based nonprofit organizations and government agencies in Alaska, Louisiana and Texas, where Apache Corporation has operations. Grant recipients must request a minimum of 50 one-, three- or five-gallon trees per project or a minimum of 1,000 bareroot seedlings. Additionally, recipients must agree to receive all awarded trees in a single delivery and provide ongoing care and maintenance.

Last season, Apache donated more than 16,000 trees to 14 nonprofit partner organizations, supporting diverse reforestation and conservation efforts. The program continued to expand through partnerships with organizations such as the City of Houston, Texas Parks and Wildlife Department, Hermann Park Conservancy, Keep San Angelo Beautiful and Medical Center Health System Foundation in Odessa.

For more information and to apply for the 2026-2027 Apache Tree Grant Program, visit www.apachelovestrees.com and submit an application by the July 31, 2026, deadline.

About Apache

Apache Corporation, a wholly owned subsidiary of APA Corporation (Nasdaq: APA), is an oil and gas exploration and production company with operations in the United States, Egypt and the United Kingdom. Apache’s parent corporation, APA Corporation, posts announcements, operational updates, investor information and press releases on its website www.apacorp.com.

About Apache Corporation Tree Grant Program

Founded in 2005, the Apache Corporation Tree Grant Program is a philanthropic initiative of Apache Corporation that donates trees to nonprofits and government entities in the company’s operational areas. The program focuses on grants that support large-scale conservation, protection of habitats for wildlife and native species, as well as the restoration and enhancement of public greenspaces. This award-winning environmental stewardship initiative has provided more than 5 million trees to over 1,000 qualified partners in the U.S. In addition to the development and improvement of public parks and greenspaces, community partners often request trees to support a broad range of conservation efforts, including preservation of natural habitats and reforestation. To learn more about the program, visit www.apachelovestrees.com.

Contacts

Media: (713) 296-7276 | [email protected]

Website: www.apacorp.com

APA-T

May 20, 2026 16:15 ET  | Source: APA Corporation

HOUSTON, May 20, 2026 (GLOBE NEWSWIRE) -- The board of directors of APA Corporation (Nasdaq: APA) has declared a regular cash dividend on the company's common shares.

The dividend on common shares is payable Aug. 21, 2026, to stockholders of record on July 22, 2026, at a rate of 25 cents per share on the corporation’s common stock.

About APA
APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname and elsewhere. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com.

Contacts

Investor:(281) 302-2286 | [email protected]  Media:(713) 296-7276 | [email protected]  Website:www.apacorp.com
APA-F

Key Takeaways Shell sold stakes in three Uruguay offshore blocks to QatarEnergy while retaining key interests.SHEL remains the operator of OFF-2 and OFF-7 as QatarEnergy joins Chevron and APA in the basin.Uruguay's offshore basin is drawing majors amid geological parallels with Namibia discoveries. Shell plc (SHEL - Free Report) has sold participating interests in three offshore exploration blocks in Uruguay to QatarEnergy, further reshaping the ownership structure of one of South America’s emerging frontier basins. The transaction marks QatarEnergy’s first entry into Uruguay’s upstream sector through partnerships with Shell, APA Corporation (APA - Free Report) and Chevron Corporation (CVX - Free Report) .

The deal includes stakes in the OFF-2, OFF-4 and OFF-7 blocks located offshore Uruguay’s Atlantic coast, where exploration activity has accelerated amid growing interest in the South Atlantic margin.

Strategic Portfolio Optimization for ShellThe divestment reflects Shell’s broader approach of balancing exploration exposure while maintaining a strong operational presence in key frontier basins. Although the company reduced its ownership stakes, it retained meaningful positions across all three blocks and continues to operate two of them, reinforcing Shell’s strategy of partnering with global energy players in high-potential exploration acreage.

Under the agreement, QatarEnergy acquired a 30% stake in OFF-2, where Shell remains an operator with a 70% interest. In OFF-7, QatarEnergy secured a 30% stake alongside Shell’s 40% holding and Chevron’s remaining 30% interest. QatarEnergy also purchased an 18% stake in OFF-4, operated by APA Corporation, while Shell retained 32%.

By bringing in QatarEnergy, Shell gains a financially strong strategic partner capable of supporting long-term exploration campaigns in technically challenging deepwater acreage, while APA and Chevron have also strengthened their presence in the frontier basin amid rising industry interest.

Uruguay Offshore Basin Gains Global AttentionThe offshore blocks span water depths ranging from 40 meters to nearly 4,000 meters and cover areas between approximately 11,000 and 18,000 square kilometers. While Uruguay has yet to record a commercial hydrocarbon discovery, the basin has increasingly attracted global majors seeking to replicate the transformational offshore discoveries made in neighboring Namibia.

Industry interest has intensified because the offshore geology of Uruguay and Namibia shares similarities tied to the ancient South Atlantic continental formation. Companies believe these geological parallels could indicate significant untapped hydrocarbon potential beneath Uruguay’s offshore waters.

Shell, currently sporting a Zacks Rank #1 (Strong Buy), has steadily expanded its presence in the region over recent years, positioning itself in a high-risk but potentially high-reward exploration frontier.

You can see the complete list of today’s Zacks #1 Rank stocks here.

QatarEnergy Expands South American FootprintFor QatarEnergy, the acquisition represents another step in its aggressive international upstream expansion strategy. The company has been actively building exploration and LNG positions across Africa, the Americas and the Eastern Mediterranean while deepening partnerships with global energy companies.

QatarEnergy CEO Saad Sherida Al-Kaabi described the transaction as an opportunity to strengthen ties with Shell while establishing the company’s first upstream presence in Uruguay. The move also complements QatarEnergy’s growing portfolio of exploration interests across Latin America and other emerging hydrocarbon regions.

Strengthening Long-Term Industry PartnershipsThe transaction underscores the increasing trend of collaboration among major energy companies in frontier exploration projects. By sharing technical expertise, financial risk and operational capabilities, companies like Shell and QatarEnergy can pursue complex offshore opportunities more efficiently.

For Shell, the sale allows the company to optimize capital allocation while maintaining exposure to Uruguay’s long-term exploration potential. At the same time, QatarEnergy gains access to a promising new basin alongside experienced operators and established global partners.

As exploration activity expands across the South Atlantic, Uruguay’s offshore sector could emerge as one of the next major areas of interest for international energy investment.