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Philip Morris (PM) Dips More Than Broader Markets: What You Should Know

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Philip Morris (PM - Free Report) closed the most recent trading day at $106.25, moving -0.67% from the previous trading session. This change lagged the S&P 500's 0.63% loss on the day. Elsewhere, the Dow lost 0.67%, while the tech-heavy Nasdaq lost 0.15%.

Prior to today's trading, shares of the seller of Marlboro and other cigarette brands had gained 8.52% over the past month. This has outpaced the Consumer Staples sector's loss of 1.25% and the S&P 500's gain of 0.89% in that time.

Philip Morris will be looking to display strength as it nears its next earnings release. On that day, Philip Morris is projected to report earnings of $1.22 per share, which would represent a year-over-year decline of 22.29%. Our most recent consensus estimate is calling for quarterly revenue of $6.48 billion, down 14.64% from the year-ago period.

PM's full-year Zacks Consensus Estimates are calling for earnings of $5.50 per share and revenue of $28.98 billion. These results would represent year-over-year changes of -9.54% and -7.72%, respectively.

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. 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. 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 0.39% lower. Philip Morris is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Philip Morris has a Forward P/E ratio of 19.45 right now. This valuation marks a premium compared to its industry's average Forward P/E of 9.96.

Meanwhile, PM's PEG ratio is currently 3.79. 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. PM's industry had an average PEG ratio of 1.96 as of yesterday's close.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 104, which puts it in the top 42% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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