The S&P 500 (^GSPC) is often seen as a benchmark for strong businesses, but that doesn’t mean every stock is worth owning.
Some companies face significant challenges, whether it’s stagnating growth, heavy debt, or disruptive new competitors.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
Goldman Sachs says subprime consumers are stronger than expected, with falling delinquencies and steady spending. Eight stocks could benefit from this unexpected resilience.
PHILIP MORRIS INTERNATIONAL (NYSE:PM) shows strong technical momentum with a perfect 10/10 rating and a high-quality breakout setup. A move above $185.43 could signal further upside.
Stocks making new highs tend to make even higher highs, particularly when positive earnings estimate revisions hit the tape. That’s precisely what Philip Morris and Sterling Infrastructure have enjoyed.
Philip Morris delivered results ahead of Wall Street’s expectations in Q1, driven primarily by strong momentum in its smoke-free product portfolio. Management credited the rapid growth of ZYN nicotine pouches and continued expansion of IQOS heated tobacco units as key contributors, with shipment volumes up significantly year over year. The company also benefited from improved manufacturing productivity and favorable shipment timing. CFO Emmanuel Babeau noted, “Our smoke-free business now accounts for 44% of total gross profit, as we continue to deploy our multi-category strategy across markets and broaden our growth opportunities.”
The stocks in this article are all trading near their 52-week highs.
This strength often reflects positive developments such as new product launches, favorable industry trends, or improved financial performance.
Big tobacco companies have made small investments in the cannabis space. Industry experts share with Benzinga what could be next for partnerships and investments.
