Philip Morris (PM) Stock Sinks As Market Gains: What You Should Know
Philip Morris (PM) closed the most recent trading day at $95.70, moving -0.62% from the previous trading session. This move lagged the S&P 500's daily gain of 1.3%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 7.48%.
Coming into today, shares of the seller of Marlboro and other cigarette brands had lost 5.42% in the past month. In that same time, the Consumer Staples sector lost 1.2%, while the S&P 500 lost 2.95%.
Wall Street will be looking for positivity from Philip Morris as it approaches its next earnings report date. This is expected to be April 20, 2023. On that day, Philip Morris is projected to report earnings of $1.31 per share, which would represent a year-over-year decline of 16.03%. Meanwhile, our latest consensus estimate is calling for revenue of $8.04 billion, up 3.77% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.29 per share and revenue of $34.76 billion, which would represent changes of +5.18% and +9.45%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Philip Morris. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.93% lower within the past month. Philip Morris is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Philip Morris is currently trading at a Forward P/E ratio of 15.32. Its industry sports an average Forward P/E of 8.57, so we one might conclude that Philip Morris is trading at a premium comparatively.
Meanwhile, PM's PEG ratio is currently 3.06. 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. Tobacco stocks are, on average, holding a PEG ratio of 2.67 based on yesterday's closing prices.
The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 217, which puts it in the bottom 14% 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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