1 Value Stock That Will Be Worth More Than Palantir by the End of 2026

1 Value Stock That Will Be Worth More Than Palantir by the End of 2026

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  • Palantir stock is wildly overvalued even after a recent 20% decline.

  • Philip Morris International is a growing nicotine business with a stable cash cow.

  • Philip Morris generates significantly more earnings than Palantir today and will for at least a decade.

  • 10 stocks we like better than Philip Morris International ›

Even if Palantir Technologies (NASDAQ: PLTR) experienced a drawdown of 20%, the stock is still one of the best performers of the last few years. Up more than 1,700% since going public, the artificial intelligence (AI) software and analytics pioneer has become an investor favorite on the back of accelerating revenue growth, increasing earnings power, and its sole founder Alex Karp.

However, if you look at the underlying business, it’s clear that Palantir’s stock price is divorced from reality. The stock has a market cap of $400 billion compared to under $4 billion in revenue and even less in earnings. Palantir stock will likely disappoint investors who buy today.

Here’s a value stock that will likely be worth more than Palantir by the end of 2026.

The company name is Philip Morris International (NYSE:PM)a global nicotine giant that produces steady cash flow for shareholders every year. It owns the Marlboro cigarette brand, along with other smokable products that it sells outside the United States.

With population increases and greater tolerance for smoking in markets outside of North America, Philip Morris’s smoking product volumes hold up significantly better than the competition despite a decline in cigarette use globally. During the first nine months of 2025, smoking volumes decreased by only 1.3% year on year for Philip Morris.

By increasing prices, Philip Morris International is able to increase its income from smoking products, which increased by 1% year on year during the first nine months of the year. Smokeables are steady cash producers for shareholders, generating the majority of the company’s $10 billion in free cash flow over the past 12 months.

Image source: Palantir Technologies.

Cigarettes should produce steady cash flow for Philip Morris for a decade, if not longer. But the real gem of this business lies in its new-age nicotine brands, namely IQOS, Zyn, and Veev.

Zyn is a leading tobacco-free nicotine pouch brand that is growing like wildfire in the United States and expanding around the world. An estimated 205 million Zyn cans were sold in the US last quarter alone, a 37% year-over-year increase and providing the majority of category share growth for nicotine pouches. IQOS is a heatless smoking device that is popular in Japan and Europe, while Veev is an electronic vaping device that is seeing accelerated unit volume growth.

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