Why Philip Morris (PM) Outpaced the Stock Market Today
In the latest trading session, Philip Morris (PM) closed at $91.70, marking a +0.94% move from the previous day. This change outpaced the S&P 500's 0.76% gain on the day. Elsewhere, the Dow saw an upswing of 0.59%, while the tech-heavy Nasdaq appreciated by 1.12%.
Shares of the seller of Marlboro and other cigarette brands witnessed a loss of 3.43% over the previous month, trailing the performance of the Consumer Staples sector with its gain of 4.52% and the S&P 500's gain of 2.5%.
The upcoming earnings release of Philip Morris will be of great interest to investors. The company's earnings report is expected on February 8, 2024. The company is predicted to post an EPS of $1.44, indicating a 3.6% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $8.93 billion, showing a 9.6% escalation compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for Philip Morris. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% higher. At present, Philip Morris boasts a Zacks Rank of #3 (Hold).
Looking at valuation, Philip Morris is presently trading at a Forward P/E ratio of 13.84. This valuation marks a premium compared to its industry's average Forward P/E of 9.02.
Also, we should mention that PM has a PEG ratio of 2.43. 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 1.8 as of yesterday's close.
The Tobacco industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 110, finds itself in the top 44% echelons 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.
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
