Philip Morris (PM) Suffers a Larger Drop Than the General Market: Key Insights
Philip Morris (PM) closed at $94.46 in the latest trading session, marking a -0.22% move from the prior day. This change lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.36%.
Heading into today, shares of the seller of Marlboro and other cigarette brands had gained 3.71% over the past month, outpacing the Consumer Staples sector's gain of 2.74% and lagging the S&P 500's gain of 5.21% in that time.
The investment community will be closely monitoring the performance of Philip Morris in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.48, reflecting a 6.47% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.91 billion, showing a 9.35% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.08 per share and revenue of $35.09 billion, indicating changes of +1.67% and +10.49%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Philip Morris. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.28% lower. Right now, Philip Morris possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Philip Morris has a Forward P/E ratio of 15.57 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.22.
We can additionally observe that PM currently boasts a PEG ratio of 2.27. 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. As the market closed yesterday, the Tobacco industry was having an average PEG ratio of 2.54.
The Tobacco industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 37% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Philip Morris International Inc. (PM) : Free Stock Analysis Report
