Philip Morris (PM) Stock Sinks As Market Gains: What You Should Know
Philip Morris (PM) closed at $103.51 in the latest trading session, marking a -1.78% move from the prior day. This change lagged the S&P 500's 1.47% gain on the day. At the same time, the Dow lost 0.11%, and the tech-heavy Nasdaq gained 7.94%.
Heading into today, shares of the seller of Marlboro and other cigarette brands had gained 4.11% over the past month, outpacing the Consumer Staples sector's gain of 0.25% and lagging the S&P 500's gain of 7.41% 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 February 9, 2023. On that day, Philip Morris is projected to report earnings of $1.29 per share, which would represent a year-over-year decline of 4.44%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.44 billion, down 8.17% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Philip Morris. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.32% higher. Philip Morris is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that Philip Morris has a Forward P/E ratio of 17.85 right now. This represents a premium compared to its industry's average Forward P/E of 9.45.
Also, we should mention that PM has a PEG ratio of 3.57. 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. The Tobacco was holding an average PEG ratio of 2.96 at yesterday's closing price.
The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Philip Morris International Inc. (PM) : Free Stock Analysis Report
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