Philip Morris (PM) Rises Yet Lags Behind Market: Some Facts Worth Knowing
Philip Morris (PM) closed the most recent trading day at $96.29, moving +1.04% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 1.41%. At the same time, the Dow added 0.58%, and the tech-heavy Nasdaq gained 2.2%.
Shares of the seller of Marlboro and other cigarette brands witnessed a gain of 4.37% over the previous month, beating the performance of the Consumer Staples sector with its gain of 2.02% and the S&P 500's gain of 2.9%.
Market participants will be closely following the financial results of Philip Morris in its upcoming release. The company is predicted to post an EPS of $1.43, indicating a 2.88% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $8.9 billion, indicating a 9.22% increase compared to the same quarter of the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Philip Morris. Such recent modifications usually signify the changing landscape of 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% lower. Philip Morris is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Philip Morris's current valuation metrics, including its Forward P/E ratio of 14.68. This indicates a premium in contrast to its industry's Forward P/E of 9.21.
Also, we should mention that PM has a PEG ratio of 2.62. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Tobacco industry held an average PEG ratio of 2.65.
The Tobacco industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 29% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PM in the coming trading sessions, be sure to utilize Zacks.com.
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Philip Morris International Inc. (PM) : Free Stock Analysis Report
