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Philip Morris (PM) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Philip Morris (PM - Free Report) closed at $72.60, marking a -0.62% move from the previous day. This change lagged the S&P 500's daily loss of 0.31%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.28%.

Coming into today, shares of the seller of Marlboro and other cigarette brands had lost 13.54% in the past month. In that same time, the Consumer Staples sector gained 1.67%, while the S&P 500 gained 2.92%.

Wall Street will be looking for positivity from PM as it approaches its next earnings report date. This is expected to be October 17, 2019. On that day, PM is projected to report earnings of $1.35 per share, which would represent a year-over-year decline of 6.16%. Meanwhile, our latest consensus estimate is calling for revenue of $7.61 billion, up 1.41% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.20 per share and revenue of $29.89 billion, which would represent changes of +2% and +0.91%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PM. These revisions help to show the ever-changing nature of 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. 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.

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. Over the past month, the Zacks Consensus EPS estimate has moved 0.14% lower. PM is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, PM is currently trading at a Forward P/E ratio of 14.04. Its industry sports an average Forward P/E of 10.96, so we one might conclude that PM is trading at a premium comparatively.

Meanwhile, PM's PEG ratio is currently 1.79. 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. Tobacco stocks are, on average, holding a PEG ratio of 1.31 based on yesterday's closing prices.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 37, putting it in the top 15% 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.

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