Philip Morris (PM - Free Report) closed at $67.87 in the latest trading session, marking a +0.67% move from the prior day. This change lagged the S&P 500's 0.97% gain on the day. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 1.08%.
Prior to today's trading, shares of the seller of Marlboro and other cigarette brands had lost 19.95% over the past month. This has lagged the Consumer Staples sector's loss of 4.45% and the S&P 500's loss of 3.04% in that time.
Wall Street will be looking for positivity from PM as it approaches its next earnings report date. This is expected to be February 14, 2019. On that day, PM is projected to report earnings of $1.17 per share, which would represent a year-over-year decline of 10.69%. Meanwhile, our latest consensus estimate is calling for revenue of $7.34 billion, down 11.54% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for PM. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.24% lower within the past month. PM currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, PM is holding a Forward P/E ratio of 12.73. For comparison, its industry has an average Forward P/E of 11.93, which means PM is trading at a premium to the group.
Also, we should mention that PM has a PEG ratio of 1.46. 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 1.46 as of yesterday's close.
The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 230, which puts it in the bottom 10% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.