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Philip Morris (PM) Dips More Than Broader Markets: What You Should Know

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Philip Morris (PM) closed the most recent trading day at $99.18, moving -0.92% from the previous trading session. This change lagged the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 0.14%.

Heading into today, shares of the seller of Marlboro and other cigarette brands had lost 6.12% over the past month, lagging the Consumer Staples sector's loss of 1.05% and the S&P 500's loss of 3.32% in that time.

Investors will be hoping for strength from Philip Morris as it approaches its next earnings release, which is expected to be July 21, 2022. The company is expected to report EPS of $1.22, down 22.29% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.5 billion, down 14.45% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.53 per share and revenue of $28.99 billion. These totals would mark changes of -9.05% and -7.68%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Philip Morris. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 0.2% higher within the past month. Philip Morris is currently a Zacks Rank #4 (Sell).

Digging into valuation, Philip Morris currently has a Forward P/E ratio of 18.1. Its industry sports an average Forward P/E of 9.49, so we one might conclude that Philip Morris is trading at a premium comparatively.

Investors should also note that PM has a PEG ratio of 3.53 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Tobacco stocks are, on average, holding a PEG ratio of 1.65 based on yesterday's closing prices.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 109, putting it in the top 44% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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