In the latest trading session, Philip Morris (PM - Free Report) closed at $75.29, marking a +0.01% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.24%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.58%.
Prior to today's trading, shares of the seller of Marlboro and other cigarette brands had gained 1.29% over the past month. This has lagged the Consumer Staples sector's gain of 1.57% and the S&P 500's gain of 4.96% 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 October 17, 2019. In that report, analysts expect PM to post earnings of $1.35 per share. This would mark a year-over-year decline of 6.25%. Our most recent consensus estimate is calling for quarterly revenue of $7.61 billion, up 1.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.20 per share and revenue of $29.89 billion. These totals would mark changes of +1.96% and +0.91%, respectively, from last year.
Any recent changes to analyst estimates for PM should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.32% lower. PM is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, PM is holding a Forward P/E ratio of 14.47. This valuation marks a premium compared to its industry's average Forward P/E of 11.25.
We can also see that PM currently has a PEG ratio of 1.84. 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 1.27 at yesterday's closing price.
The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% 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.