5-Star Stocks Poised to Pop: Philip Morris International

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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global tobacco giant Philip Morris International (NYSE: PM) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Philip Morris' business and see what CAPS investors are saying about the stock right now.

Philip Morris facts

Headquarters	New York, N.Y. (spun off from Altria, March 2008)
Market Cap	$85.56 billion
Industry	Tobacco
TTM Revenue	$25.38 billion
Management	Chairman/CEO Louis Camilleri (since 2003) CFO Hermann Waldemer (since 2008)
TTM Return on Capital	30.1%
Dividend Yield	5.0%
Competitors	British American Tobacco Reynolds American (NYSE: RAI)
CAPS Members Bullish on PM Also Bullish on:	Altria (NYSE: MO) Johnson & Johnson (NYSE: JNJ) General Electric (NYSE: GE)
CAPS Members Bearish on PM Also Bearish on:	Microsoft (NYSE: MSFT) Ford Motor (NYSE: F)

Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 1,854 of the 1,887 members who have rated Philip Morris -- or 98% -- believe the stock will outperform the S&P 500 going forward. These bulls include MikeOb1 and All-Star AccountantMike, who is ranked in the top 4% of our community.

Last month, MikeOb1 summed up the Philip Morris bull case simply: "This stock is a cash cow. People in other countries smoke like chimneys. This company sells an addictive product legally. The dividends are high, profits are climbing. What’s not to like?"

In an earlier pitch from April, AccountantMike took an even longer draw:

Demographics and economics are also on the side of this company. The developing and undeveloped world have rapidly growing populations, including vast populations of young people (under 20) who have yet to take up smoking. Secondly, emerging markets have a massive and rapidly growing 'middle class' of people with a small amount of disposable income to spend on simple pleasures like smoking.

Since this company draws its revenues in foreign currencies but books profits in USD, its profits will be inflated by the long term decline of the greenback. Don't forget the rock solid balance sheet, juicy dividend, and the fact that the product is addictive.

What do you think about Philip Morris, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.