Back to top

Image: Bigstock

Philip Morris (PM) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

In the latest trading session, Philip Morris (PM - Free Report) closed at $85.62, marking a +1.93% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.65%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq added 0.03%.

Coming into today, shares of the seller of Marlboro and other cigarette brands had lost 13.99% in the past month. In that same time, the Consumer Staples sector lost 9.24%, while the S&P 500 lost 11.07%.

Wall Street will be looking for positivity from Philip Morris as it approaches its next earnings report date. This is expected to be October 20, 2022. In that report, analysts expect Philip Morris to post earnings of $1.40 per share. This would mark a year-over-year decline of 11.39%. Meanwhile, our latest consensus estimate is calling for revenue of $7.27 billion, down 10.43% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.79 per share and revenue of $30.62 billion, which would represent changes of -4.77% and -2.5%, respectively, from the prior year.

Investors might also notice 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate has moved 3.26% lower within the past month. Philip Morris is currently a Zacks Rank #3 (Hold).

In terms of valuation, Philip Morris is currently trading at a Forward P/E ratio of 14.51. For comparison, its industry has an average Forward P/E of 8.87, which means Philip Morris is trading at a premium to the group.

We can also see that PM currently has a PEG ratio of 4.65. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Tobacco stocks are, on average, holding a PEG ratio of 1.12 based on yesterday's closing prices.

The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Philip Morris International Inc. (PM) - free report >>

Published in