Philip Morris International Inc. (PM) is a global company known for its tobacco and nicotine products, including Marlboro. The company is shifting its focus to smoke-free options with its “Beyond Nicotine” strategy. Through its IQOS product, which uses heat-not-burn technology, Philip Morris aims to offer healthier alternatives in over 180 markets worldwide. Since March 2009, the company’s stock has increased by 475%, reaching $186 in June. Currently, the stock is following a pattern with several waves. The first wave ended in June 2017 and was followed by a pullback in March 2020. This pullback initiated the third wave, which could reach $204 or more. Wave IV started after the stock hit an all-time high in June 2025. A recent 7-swing pullback in the range of $144.10 to $124.79 suggests a potential 3-swing bounce. Analysts predict that wave V will rise above $200, completing wave (III) and providing a new buying opportunity in wave (IV). The overall trend is positive, and a cautious buying strategy on pullbacks is recommended, highlighted by a blue box. Traders should watch various timeframes for opportunities. Philip Morris stock is currently at a critical support zone, where it seems buyers are accumulating shares. The recent pullback from the June 2025 peak has created an ideal entry point for the next upward move. We expect the stock to potentially rise to $200 in the upcoming weeks. This technical setup is strengthened by solid fundamentals, especially in the company’s smoke-free products. The recent Q3 2025 earnings report showed an 18% year-over-year growth in heated tobacco unit shipments, surpassing analyst expectations. This ongoing success in the IQOS platform confirms that the company’s growth story is both intact and accelerating. Investor sentiment has improved due to the company’s commitment to shareholder returns. Earlier this month, the board announced a 5% dividend increase, leading to a current yield of 5.6%. Given the market’s increased volatility since September 2025, this mix of growth and yield is attracting new investments. For those trading derivatives, this scenario suggests a bullish approach. Buying call options that expire in early 2026, with strike prices around $175 or $180, can provide a leveraged way to profit from a strong move toward the $200 target. The recent price drop has lowered option premiums, creating a favorable risk-reward situation. A more conservative strategy could be to sell cash-secured puts near the lower end of the support zone, around $130 or $135. This approach generates income from the premiums collected and sets a price at which traders would be willing to buy the stock if it dips further, which we consider another buying opportunity.

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