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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 at $99.75 in the latest trading session, marking a +0.5% move from the prior day. This change outpaced the S&P 500's 0.14% gain on the day. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq gained 1.54%.
Prior to today's trading, shares of the seller of Marlboro and other cigarette brands had lost 2.89% over the past month. This has lagged the Consumer Staples sector's loss of 0.97% and was narrower than the S&P 500's loss of 4.07% in that time.
Investors will be hoping for strength from Philip Morris as it approaches its next earnings release. On that day, Philip Morris is projected to report earnings of $1.33 per share, which would represent a year-over-year decline of 14.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.05 billion, up 3.97% from the year-ago period.
PM's full-year Zacks Consensus Estimates are calling for earnings of $6.32 per share and revenue of $34.89 billion. These results would represent year-over-year changes of +5.69% and +9.86%, respectively.
It is also important to note the recent changes to analyst estimates for Philip Morris. Recent revisions tend to reflect the latest 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.56% higher. Philip Morris currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Philip Morris is currently trading at a Forward P/E ratio of 15.72. For comparison, its industry has an average Forward P/E of 9.03, which means Philip Morris is trading at a premium to the group.
We can also see that PM currently has a PEG ratio of 3.14. 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 industry currently had an average PEG ratio of 2.72 as of yesterday's close.
The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% 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) Outpaces Stock Market Gains: What You Should Know
Philip Morris (PM - Free Report) closed at $99.75 in the latest trading session, marking a +0.5% move from the prior day. This change outpaced the S&P 500's 0.14% gain on the day. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq gained 1.54%.
Prior to today's trading, shares of the seller of Marlboro and other cigarette brands had lost 2.89% over the past month. This has lagged the Consumer Staples sector's loss of 0.97% and was narrower than the S&P 500's loss of 4.07% in that time.
Investors will be hoping for strength from Philip Morris as it approaches its next earnings release. On that day, Philip Morris is projected to report earnings of $1.33 per share, which would represent a year-over-year decline of 14.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.05 billion, up 3.97% from the year-ago period.
PM's full-year Zacks Consensus Estimates are calling for earnings of $6.32 per share and revenue of $34.89 billion. These results would represent year-over-year changes of +5.69% and +9.86%, respectively.
It is also important to note the recent changes to analyst estimates for Philip Morris. Recent revisions tend to reflect the latest 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.56% higher. Philip Morris currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Philip Morris is currently trading at a Forward P/E ratio of 15.72. For comparison, its industry has an average Forward P/E of 9.03, which means Philip Morris is trading at a premium to the group.
We can also see that PM currently has a PEG ratio of 3.14. 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 industry currently had an average PEG ratio of 2.72 as of yesterday's close.
The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 106, which puts it in the top 43% 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.