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

·3 min read

Philip Morris (PM) closed the most recent trading day at $94.61, moving +0.54% from the previous trading session. This change lagged the S&P 500's 1.83% gain on the day. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.09%.

Heading into today, shares of the seller of Marlboro and other cigarette brands had lost 3.36% over the past month, outpacing the Consumer Staples sector's loss of 3.95% and the S&P 500's loss of 5.51% in that time.

Wall Street will be looking for positivity from Philip Morris as it approaches its next earnings report date. This is expected to be October 20, 2022. The company is expected to report EPS of $1.40, down 11.39% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.17 billion, down 11.75% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.99 per share and revenue of $29.98 billion. These totals would mark changes of -1.48% and -4.53%, respectively, from last year.

Any recent changes to analyst estimates for Philip Morris should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.53% higher within the past month. Philip Morris is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Philip Morris currently has a Forward P/E ratio of 15.72. This valuation marks a premium compared to its industry's average Forward P/E of 9.12.

We can also see that PM currently has a PEG ratio of 3.63. 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 1.12 based on yesterday's closing prices.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 26% 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.

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

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