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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 $97.71 in the latest trading session, marking a +0.4% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.94%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 1.53%.

Heading into today, shares of the seller of Marlboro and other cigarette brands had gained 3.5% over the past month, outpacing the Consumer Staples sector's loss of 1.67% and the S&P 500's gain of 1.85% in that time.

Philip Morris will be looking to display strength as it nears its next earnings release, which is expected to be October 19, 2023. In that report, analysts expect Philip Morris to post earnings of $1.65 per share. This would mark year-over-year growth of 7.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $9.27 billion, up 15.37% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.21 per share and revenue of $35.7 billion. These totals would mark changes of +3.85% and +12.39%, respectively, from last year.

Any recent changes to analyst estimates for Philip Morris should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.34% lower. Philip Morris is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Philip Morris is holding a Forward P/E ratio of 15.67. This valuation marks a premium compared to its industry's average Forward P/E of 9.05.

Also, we should mention that PM has a PEG ratio of 2.03. 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 2.17 based on yesterday's closing prices.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% 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.

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