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Philip Morris (PM) Stock Dips While Market Gains: Key Facts

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The most recent trading session ended with Philip Morris (PM - Free Report) standing at $89.96, reflecting a -0.51% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.52%. Elsewhere, the Dow saw an upswing of 0.12%, while the tech-heavy Nasdaq appreciated by 0.9%.

Shares of the seller of Marlboro and other cigarette brands have depreciated by 0.47% over the course of the past month, underperforming the Consumer Staples sector's gain of 1.34% and the S&P 500's gain of 3.85%.

Investors will be eagerly watching for the performance of Philip Morris in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.40, signifying a 1.45% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $8.38 billion, reflecting a 3.5% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.40 per share and a revenue of $36.9 billion, signifying shifts of +6.49% and +4.66%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Philip Morris. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.96% lower. Philip Morris is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Philip Morris is currently trading at a Forward P/E ratio of 14.13. This denotes a premium relative to the industry's average Forward P/E of 8.09.

We can also see that PM currently has a PEG ratio of 2.04. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Tobacco industry was having an average PEG ratio of 1.64.

The Tobacco industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 39% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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