Philip Morris's shares have reached an all-time high due to the demand for Zyn, making it a growth stock once again.

On Tuesday, the tobacco company's Zyn brand experienced a surge in demand, resulting in a record high in shares.

The stock of the Connecticut-based company reached a new intraday record with shares jumping above $130 at session highs. Additionally, the stock is on track to set an all-time closing high and achieve its largest one-day gain since March 2020.

The latest milestone in the stock's breakout this year is the eye-popping jump in shipments of its Zyn oral nicotine pouches, which has caught Wall Street's attention as the product has captured consumer interest.

The stock remained dormant from 2013 to 2023, with investors viewing it as a low-risk investment in a sluggish market. However, recent developments have changed this perception, and traders now see the stock as a growth opportunity, thanks to the success of Zyn, which Philip Morris acquired through its acquisition of Swedish Match two years ago.

Emmanuel Babeau, the finance chief of the top U.S. smoke-free brand, reported very strong underlying momentum during a Tuesday call with analysts.

Philip Morris' oral products have experienced a nearly 40% increase in shipments in the U.S. due to Zyn demand in the first nine months of 2024, compared to the same period in the previous year.

The increase in Zyn shipments in the U.S. during the third quarter of 2023 was more than 41% compared to the same three-month period in 2023. Philip Morris anticipates that Zyn shipments will match demand "at some point" during the fourth quarter, according to Babeau.

Nicotine pouches are experiencing significant growth internationally, with a 70% increase in volume outside of America between the third quarters of 2023 and 2024. Zyn, a popular brand, is now available in 30 markets following recent expansions into Greece and the Czech Republic.

Zyn was identified as the primary contributor to Philip Morris's overall net revenue. Despite analysts predicting lower financial results for the third quarter, the company surpassed expectations on both lines. Additionally, Philip Morris increased its full-year earnings per share forecast.

Earlier this year, Philip Morris announced that it would invest $600 million to construct a new production facility for Zyn in Colorado, symbolizing the shift among tobacco companies towards alternatives to traditional cigarettes.

In 2024, Philip Morris's shares rose more than 37%, marking the best year on record for the company since its separation in 2008 due to smoker lawsuits. Although the company kept the international cigarettes business, which continued to grow, shares of the U.S. cigarettes unit have struggled since, still far below the all-time high reached in 2017.