2 Soaring Stocks to Watch in 2026: Amazon and Philip Morris International

Note: This article is a rewritten, expanded news-style analysis based on a Motley Fool report published on January 20, 2026. It’s for learning and discussion only—not personal financial advice.

Quick Snapshot

As 2026 gets underway, some consumer-facing companies are showing fresh momentum. One recent market commentary highlighted two “soaring” names that have been moving higher: Amazon (AMZN) and Philip Morris International (PM).

Why these two? The report’s thesis is simple: both companies have visible growth engines (cloud + automation for Amazon; smoke-free products for Philip Morris), and both are portrayed as reasonably valued relative to peers or growth expectations.

Contents at a Glance

Section	What You’ll Learn
Amazon overview	Retail efficiency, robotics, AI, and AWS growth drivers
Amazon valuation context	How the report compares AMZN to Walmart/Costco on forward P/E
Philip Morris overview	Shift to smoke-free: Zyn, IQOS, margins, and U.S. strategy
Philip Morris valuation context	P/E and PEG discussion from the report
Risks	Key “what could go wrong” factors for both companies
FAQs	Common questions investors ask about AMZN and PM

Why “Soaring Stocks” Matter in 2026

When a stock is described as “soaring,” it usually means the market is rewarding a company for one (or more) of these reasons:

• Better profits than expected (or profits growing faster than sales)
• Operating leverage (costs growing slower than revenue)
• A new growth engine (like AI demand or new product categories)
• Improving investor confidence after a rough period

In the report’s framing, Amazon is benefiting from stronger efficiency in e-commerce and renewed momentum in cloud computing, while Philip Morris International is benefiting from strong growth in its smoke-free portfolio.

1) Amazon (AMZN): The E-Commerce and Cloud Giant in “Efficiency Mode”

Amazon’s 2026 setup: recovery plus momentum

Amazon’s stock has already bounced meaningfully from prior lows, and the commentary suggests the company looks “well set up” for 2026. The argument is that even with macro worries like tariffs and shaky consumer sentiment, consumer spending has stayed relatively resilient, giving Amazon room to keep growing.

Operating leverage: making more profit from each dollar of revenue

A major highlight is operating leverage in Amazon’s North American retail business. In the cited quarter, the report notes North American revenue rose while adjusted operating income rose much faster—an example of profitability scaling faster than sales.

This matters because retail is often viewed as a tough, low-margin business. If Amazon can steadily improve efficiency—shipping, picking, packing, forecasting demand, and reducing waste—then even modest sales growth can translate into outsized profit growth.

Robotics + AI: the “behind-the-scenes” engine

The report points to Amazon’s heavy investment in robotics and artificial intelligence as a key reason efficiency is improving. Amazon is described as the world’s leading manufacturer/operator of robots, with more than 1 million robots deployed in its fulfillment network.

Those robots aren’t just fancy gadgets—they’re designed to reduce travel time inside warehouses, lower error rates, speed up sorting, and support faster delivery promises. The report also mentions these systems are increasingly coordinated by an AI model called Deepfleet, emphasizing that Amazon is using AI not only for customer-facing features, but also to optimize logistics.

Faster deliveries, better customer experience, and lower cost per package

When operations become more efficient, Amazon can do a few powerful things at once:

• Deliver faster (which tends to increase customer loyalty)
• Spend less per delivery (which protects margins)
• Handle more volume without the same level of cost increases

That combination can create a “flywheel”: better service brings more customers, more volume improves utilization, and better utilization improves profits—helping fund more investment.

AWS re-acceleration: the second giant growth lever

Beyond retail, Amazon’s long-term story is tightly tied to Amazon Web Services (AWS). The report argues AWS is starting to see growth accelerate again, which is a big deal because cloud computing tends to be higher margin than retail.

AI infrastructure demand: data centers, chips, and long contracts

AI workloads can be extremely compute-heavy, and that pushes companies to rent cloud capacity instead of building everything alone. In the report’s telling, Amazon recently built a large data center facility for Anthropic, which could help drive AWS growth in 2026.

It also mentions Amazon signed a large seven-year deal valued at $38 billion with OpenAI. Whether you focus on the headline number or the length of the commitment, the point is the same: long-term demand for cloud capacity can support sustained revenue visibility.

Capital expenditures (capex): spending now to capture future demand

The report notes Amazon is ramping capital expenditures to meet growing demand for cloud services used to build and run AI models and applications.

Capex can look scary at first because it reduces near-term free cash flow. But in infrastructure businesses, spending is often a sign of opportunity—especially if the company can earn strong returns on that investment over time.

Valuation talk: Amazon versus big retail peers

Even after a rebound, the report describes Amazon as attractively valued. Specifically, it cites a forward P/E around 25x compared with over 40x for Walmart and Costco, while arguing Amazon has stronger retail revenue and earnings growth.

It’s important to remember that valuation comparisons can be tricky. Companies have different business mixes and risk profiles. Still, the core message is: the market may not be fully pricing in Amazon’s operational improvements and AWS re-acceleration at the same time.

Key Amazon takeaways

• Efficiency gains in retail can expand margins even if growth is moderate.
• Robotics and AI are positioned as practical tools that reduce costs and speed delivery.
• AWS could re-accelerate with AI-related demand and long-term enterprise contracts.
• Valuation is presented as reasonable versus certain large retail peers, per the report.

2) Philip Morris International (PM): Smoke-Free Products Driving the Next Chapter

Performance context: strong recent returns, but the story isn’t “done”

Philip Morris International is described as having a strong 2025, with the stock up more than 33%, and it’s also up more than 8% early in 2026 (as of the report’s writing). Even so, the commentary suggests it may still be an attractive buy at current levels.

A structural advantage: less exposure to U.S. cigarettes

One interesting point the report makes is that Philip Morris has an advantage among tobacco peers because it does not sell cigarettes in the U.S. market, where smoking has been declining rapidly. Instead, its core cigarette business is international, where volumes are described as steadier, and pricing power remains a meaningful lever.

The U.S. focus—without cigarettes

Even though PM doesn’t sell cigarettes in the U.S., the U.S. is still a major strategic focus. The difference is what PM wants to sell there: smoke-free nicotine products.

Zyn: nicotine pouches as a growth engine

The report highlights Zyn—a nicotine pouch brand—as a standout winner in the U.S. In the referenced quarter, PM’s U.S. shipments were said to surge 37%, while retail sales volumes rose 39%.

Why do investors care? Because strong retail sell-through suggests consumer adoption, and adoption can lead to repeat purchases—especially in “habit” categories. Of course, regulation, competition, and health concerns remain major factors in this industry.

IQOS: heated tobacco and a potential broader U.S. rollout

Another key pillar is IQOS, Philip Morris’s heated tobacco platform. The report says PM bought back the U.S. rights to IQOS and is testing it in select U.S. markets. A broader launch is expected after FDA authorization for its newer IQOS Iluma device, according to the commentary.

Internationally, IQOS has performed strongly in markets like Japan and Europe, and it’s also gaining traction elsewhere, per the report.

Why “smoke-free” can be financially powerful: margins and unit economics

The report emphasizes that smoke-free products like Zyn and IQOS can have higher unit economics than traditional cigarettes. In plain English: the company may make more profit per unit sold, which can support:

• Revenue growth through category expansion
• Gross margin expansion as the mix shifts to higher-margin products
• Reinvestment capacity for marketing, innovation, and distribution

This is the heart of the “next era” thesis: PM is aiming to become less dependent on combustible cigarettes and more dependent on alternative nicotine formats, while still using pricing power in legacy categories where applicable.

Valuation: P/E and PEG in the report

On valuation, the report cites Philip Morris trading around 19x 2026 analyst estimates and a PEG ratio under 0.7, noting that a PEG below 1 is often considered undervalued (as a general rule of thumb).

Investors should treat PEG carefully because it depends heavily on growth estimates, and estimates can change. Still, the message is that PM’s price may not fully reflect the growth potential of its smoke-free portfolio.

Key Philip Morris takeaways

• Smoke-free momentum is the central theme: Zyn and IQOS lead the narrative.
• U.S. growth is targeted through alternatives rather than cigarettes.
• Higher unit economics could support margin expansion over time.
• Valuation is presented as attractive relative to growth expectations.

What Could Go Wrong? Balanced Risks to Keep in Mind

Amazon risk checklist

• Consumer slowdown: If spending weakens, retail growth and advertising can soften.
• Cloud competition: AWS faces tough competition in cloud and AI infrastructure.
• Capex pressure: Heavy data center spending can reduce free cash flow if demand cools.
• Regulatory scrutiny: Large platforms often face antitrust and regulatory attention.

Philip Morris risk checklist

• Regulation: Nicotine products are heavily regulated and rules can tighten quickly.
• FDA uncertainty: Timing and outcomes for product approvals can shift.
• Competition: Smoke-free categories are crowded and marketing restrictions matter.
• Reputation and ESG constraints: Some investors avoid tobacco-related exposure entirely.

How to Read This Kind of Stock Story (Without Getting Hype-Trapped)

If you’re learning investing, here are a few smart habits when you see “soaring stocks” headlines:

1. Separate story from numbers: A great narrative needs financial proof (margins, cash flow, revenue trends).
2. Track the driver: For Amazon it’s efficiency + AWS; for PM it’s smoke-free growth.
3. Watch valuation: Even great companies can be risky if priced too high.
4. Know your time horizon: Short-term moves can be noisy; long-term compounding is usually calmer.

FAQ

1) What are the “2 soaring stocks” mentioned in the report?

The report highlights Amazon (AMZN) and Philip Morris International (PM) as two stocks it describes as “soaring.”

2) Why does Amazon’s robotics and AI investment matter?

Because it can reduce costs and improve speed and accuracy in fulfillment. The report notes Amazon has deployed more than 1 million robots and is using AI (including a model referenced as Deepfleet) to improve efficiency.

3) What is the report saying about AWS in 2026?

It suggests AWS growth may be accelerating due to demand for AI infrastructure, citing expanded capacity and major relationships including work connected to Anthropic and a large, long-term deal mentioned with OpenAI.

4) Why is Philip Morris focusing on “smoke-free” products?

The report’s view is that products like Zyn and IQOS can drive growth and may deliver better unit economics than traditional cigarettes, potentially supporting margins over time.

5) What is Zyn and why is it important in the U.S.?

Zyn is a nicotine pouch brand. The report states that PM saw strong U.S. momentum, with shipments up 37% and retail volumes up 39% in the cited quarter.

6) Is this article telling me to buy these stocks?

No. This is a detailed rewrite and educational breakdown of a published market commentary. If you’re considering investing, it’s wise to research official filings, understand your risk tolerance, and (if needed) talk with a qualified financial professional.

Conclusion: The Big Picture for 2026

In this January 20, 2026 market commentary, the core thesis is that Amazon and Philip Morris International share a similar advantage: each has a major growth driver that can expand profits as the business scales. For Amazon, it’s retail efficiency powered by robotics/AI plus renewed AWS momentum. For Philip Morris, it’s the transition to smoke-free products led by Zyn and IQOS, supported by margin expansion potential and valuation metrics discussed in the report.

Whether you’re an experienced investor or just learning, the smartest next step is to treat headlines as a starting point—then validate the story with data, risks, and realistic expectations.

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