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Philip Morris (PM) Outpaces Stock Market Gains: What You Should Know

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Philip Morris (PM - Free Report) closed the most recent trading day at $108.57, moving +1.83% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.95%. Meanwhile, the Dow gained 0.6%, and the Nasdaq, a tech-heavy index, added 0.04%.

Prior to today's trading, shares of the seller of Marlboro and other cigarette brands had gained 3.75% over the past month. This has outpaced the Consumer Staples sector's loss of 4.36% and the S&P 500's loss of 7.49% in that time.

Investors will be hoping for strength from Philip Morris as it approaches its next earnings release. In that report, analysts expect Philip Morris to post earnings of $1.21 per share. This would mark a year-over-year decline of 22.93%. Our most recent consensus estimate is calling for quarterly revenue of $6.51 billion, down 14.24% from the year-ago period.

PM's full-year Zacks Consensus Estimates are calling for earnings of $5.50 per share and revenue of $29.07 billion. These results would represent year-over-year changes of -9.54% and -7.43%, respectively.

Any recent changes to analyst estimates for Philip Morris should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 0.67% lower. Philip Morris is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note Philip Morris's current valuation metrics, including its Forward P/E ratio of 19.39. This valuation marks a premium compared to its industry's average Forward P/E of 9.66.

Meanwhile, PM's PEG ratio is currently 3.78. 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 1.91 at yesterday's closing price.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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