5. Philip Morris International (PM) sells cigarettes outside the U.S. Second-quarter profit increased 28% to $2 billion, or $1.07 a share, as revenue grew 15% to $7.1 billion. The operating margin declined from 42% to 41%. Philip Morris International has $1.6 billion of cash and $15 billion of debt, equaling a quick ratio of 0.5 and a debt-to-equity ratio of 3.7. Its stock sells for a PEG ratio of 0.8, a 20% discount to estimated fair value. Of analysts covering the stock, 81% rate it a "buy." Researchers' median target of $56.64 suggests a potential return of 10%.
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