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Philip Morris (PM) Flat As Market Sinks: What You Should Know

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Philip Morris (PM - Free Report) closed at $93.94 in the latest trading session, marking no change from the prior day. This move was narrower than the S&P 500's daily loss of 1.57%. Meanwhile, the Dow lost 1.56%, and the Nasdaq, a tech-heavy index, added 0.1%.

Heading into today, shares of the seller of Marlboro and other cigarette brands had lost 8.39% over the past month, lagging the Consumer Staples sector's loss of 0.1% and the S&P 500's gain of 5.37% in that time.

Wall Street will be looking for positivity from Philip Morris as it approaches its next earnings report date. This is expected to be April 21, 2022. The company is expected to report EPS of $1.50, down 4.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $7.39 billion, down 2.54% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.86 per share and revenue of $30.45 billion. These totals would mark changes of -3.62% and -3.04%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Philip Morris. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 6.95% lower. Philip Morris is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Philip Morris's current valuation metrics, including its Forward P/E ratio of 16.02. Its industry sports an average Forward P/E of 9.77, so we one might conclude that Philip Morris is trading at a premium comparatively.

It is also worth noting that PM currently has a PEG ratio of 2.62. 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. PM's industry had an average PEG ratio of 2.62 as of yesterday's close.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 236, which puts it in the bottom 8% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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