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Philip Morris (PM) Gains But Lags Market: What You Should Know

Philip Morris (PM) closed at $90.84 in the latest trading session, marking a +0.09% move from the prior day. This move lagged the S&P 500's daily gain of 1.31%. At the same time, the Dow added 1%, and the tech-heavy Nasdaq lost 4.19%.

Prior to today's trading, shares of the seller of Marlboro and other cigarette brands had lost 8.16% over the past month. This has lagged the Consumer Staples sector's loss of 4.63% and the S&P 500's gain of 2.12% in that time.

Wall Street will be looking for positivity from Philip Morris as it approaches its next earnings report date. On that day, Philip Morris is projected to report earnings of $1.46 per share, which would represent a year-over-year decline of 1.35%. Our most recent consensus estimate is calling for quarterly revenue of $8.72 billion, up 11.32% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.20 per share and revenue of $35.18 billion, which would represent changes of +3.68% and +10.77%, respectively, from the prior year.

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Any recent changes to analyst estimates for Philip Morris should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.19% lower. Philip Morris is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Philip Morris is holding a Forward P/E ratio of 14.63. This represents a premium compared to its industry's average Forward P/E of 9.07.

We can also see that PM currently has a PEG ratio of 2.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Tobacco stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 121, which puts it in the top 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Philip Morris International Inc. (PM) : Free Stock Analysis Report

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