With the average stock on the S&P 500 trading at a price-to-earnings (P/E) multiple of 34, it’s clearly getting hard to find good companies trading at bargain prices in the stock market. But it isn’t impossible.
Philip Morris International (NYSE:PM) is just one example. The cigarette maker’s ongoing transition to reduced-risk tobacco products and healthcare is just part of the reason that value investors are smiling all the way to the bank with this stock.
A transition to reduced-risk products
Philip Morris International’s second-quarter net revenue jumped 14% year over year to $7.6 billion as pandemic-related headwinds normalized in international markets. The company’s pivot to reduced-risk tobacco products is also gaining steam. Smoke-free products (which include heated tobacco units, oral tobacco, and vaporizers) now represent 29% of…