In the latest trading session, Philip Morris (PM) closed at $95.49, marking a -0.78% move from the previous day. This change was narrower than the S&P 500's 1.1% loss on the day. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq lost 0.13%.
Heading into today, shares of the seller of Marlboro and other cigarette brands had lost 2.27% over the past month, lagging the Consumer Staples sector's loss of 0.5% and outpacing the S&P 500's loss of 2.28% in that time.
Investors will be hoping for strength from Philip Morris as it approaches its next earnings release. The company is expected to report EPS of $1.40, down 11.39% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $7.17 billion, down 11.75% from the prior-year quarter.
PM's full-year Zacks Consensus Estimates are calling for earnings of $5.99 per share and revenue of $29.98 billion. These results would represent year-over-year changes of -1.48% and -4.53%, respectively.
Any recent changes to analyst estimates for Philip Morris should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% lower. Philip Morris currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Philip Morris is holding a Forward P/E ratio of 16.08. For comparison, its industry has an average Forward P/E of 9.34, which means Philip Morris is trading at a premium to the group.
Meanwhile, PM's PEG ratio is currently 3.71. 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. The Tobacco industry currently had an average PEG ratio of 1.6 as of yesterday's close.
The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 26% 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.
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Philip Morris International Inc. (PM) : Free Stock Analysis Report
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