Philip Morris (PM) Gains As Market Dips: What You Should Know
Philip Morris (PM) closed the most recent trading day at $100.07, moving +0.4% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.27%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Prior to today's trading, shares of the seller of Marlboro and other cigarette brands had gained 8.47% over the past month. This has outpaced the Consumer Staples sector's gain of 5.14% and the S&P 500's gain of 7.36% 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 April 21, 2022. In that report, analysts expect Philip Morris to post earnings of $1.49 per share. This would mark a year-over-year decline of 5.1%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.34 billion, down 3.19% from the year-ago period.
PM's full-year Zacks Consensus Estimates are calling for earnings of $5.87 per share and revenue of $30.45 billion. These results would represent year-over-year changes of -3.45% and -3.04%, respectively.
It is also important to note the 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 6.1% lower. Philip Morris is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Philip Morris is holding a Forward P/E ratio of 16.99. Its industry sports an average Forward P/E of 10.53, 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 2.77 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PM's industry had an average PEG ratio of 2.77 as of yesterday's close.
The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 244, which puts it in the bottom 4% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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