While most people try to quit smoking, Philip MorrisPM

investors are getting absolutely lit. Up 52% year-to-date and hitting all-time highs this week, the Marlboro maker ranks as the S&P 500’s fourth-best performer. With smoke-free goods driving 44% of profits, the tobacco goliath has escaped its stigmatized past.

• With a $285.5B market cap,PM
  ’s last quarter beat EPS, revenue, and guidance estimates — with “Buy” or “Overweight” ratings from Barclays, Morgan Stanley, and Citigroup.
• While fanatics lovePM
  ’s defensive nature and 2.94% dividend yield, critics point to its lofty valuation — it trades at 37.81x the trailing year’s earnings vs. the S&P 500’s 28.1x.

Bigger & Better: In January, the FDA certified ZYN products as “substantially lower” in harmful constituents than cigarettes, securing a regulatory triumph. Plus, with smoke-free’s 70% margins eclipsing traditional tobacco,PM

extracted maximum profit from ZYN’s explosive 53% shipment surge that triggered nationwide shortages. Meanwhile, Morris’ European staple, IQOS, delivered 9.4% growth as the heated tobacco device stages its US market entry. However, following Altira’sMO

Juul flop, let’s see how well this old tobacco dog learns new tricks.