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Philip Morris (PM) Gains As Market Dips: What You Should Know
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Philip Morris (PM - Free Report) closed at $95 in the latest trading session, marking a +0.79% move from the prior day. This move outpaced the S&P 500's daily loss of 0.26%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.04%.
Prior to today's trading, shares of the seller of Marlboro and other cigarette brands had gained 7.31% over the past month. This has lagged the Consumer Staples sector's gain of 9.11% and outpaced the S&P 500's gain of 4.82% 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 $1.32, up 4.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.84 billion, up 5.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.03 per share and revenue of $31.25 billion. These totals would mark changes of +16.63% and +8.92%, respectively, from last year.
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. As a result, we can interpret positive estimate revisions as a good sign for 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 0.54% 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 15.62. Its industry sports an average Forward P/E of 9.42, so we one might conclude that Philip Morris is trading at a premium comparatively.
Investors should also note that PM has a PEG ratio of 1.99 right now. 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 1.99 based on yesterday's closing prices.
The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% 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 (PM) Gains As Market Dips: What You Should Know
Philip Morris (PM - Free Report) closed at $95 in the latest trading session, marking a +0.79% move from the prior day. This move outpaced the S&P 500's daily loss of 0.26%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.04%.
Prior to today's trading, shares of the seller of Marlboro and other cigarette brands had gained 7.31% over the past month. This has lagged the Consumer Staples sector's gain of 9.11% and outpaced the S&P 500's gain of 4.82% 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 $1.32, up 4.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.84 billion, up 5.26% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.03 per share and revenue of $31.25 billion. These totals would mark changes of +16.63% and +8.92%, respectively, from last year.
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. As a result, we can interpret positive estimate revisions as a good sign for 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 0.54% 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 15.62. Its industry sports an average Forward P/E of 9.42, so we one might conclude that Philip Morris is trading at a premium comparatively.
Investors should also note that PM has a PEG ratio of 1.99 right now. 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 1.99 based on yesterday's closing prices.
The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% 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.