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Philip Morris (PM) Gains But Lags Market: What You Should Know

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Philip Morris (PM - Free Report) closed at $88.35 in the latest trading session, marking a +0.32% move from the prior day. The stock lagged the S&P 500's daily gain of 0.65%. At the same time, the Dow added 0.79%, and the tech-heavy Nasdaq gained 1.01%.

Prior to today's trading, shares of the seller of Marlboro and other cigarette brands had gained 6.22% over the past month. This has outpaced the Consumer Staples sector's loss of 2.45% and the S&P 500's loss of 6.82% in that time.

Investors will be hoping for strength from PM as it approaches its next earnings release, which is expected to be February 14, 2019. In that report, analysts expect PM to post earnings of $1.20 per share. This would mark a year-over-year decline of 8.4%. Our most recent consensus estimate is calling for quarterly revenue of $7.37 billion, down 11.19% from the year-ago period.

PM's full-year Zacks Consensus Estimates are calling for earnings of $5.01 per share and revenue of $29.41 billion. These results would represent year-over-year changes of +1.62% and +2.31%, respectively.

Investors should also note any recent changes to analyst estimates for PM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 0.25% higher. PM is currently a Zacks Rank #3 (Hold).

Investors should also note PM's current valuation metrics, including its Forward P/E ratio of 17.57. This represents a premium compared to its industry's average Forward P/E of 14.62.

Also, we should mention that PM has a PEG ratio of 2.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Tobacco was holding an average PEG ratio of 1.94 at yesterday's closing price.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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