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

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Philip Morris (PM - Free Report) ended the recent trading session at $91.87, demonstrating a -1.37% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.63%. Meanwhile, the Dow experienced a drop of 0.51%, and the technology-dominated Nasdaq saw a decrease of 0.63%.

The seller of Marlboro and other cigarette brands's stock has dropped by 2.2% in the past month, exceeding the Consumer Staples sector's loss of 5.19% and the S&P 500's loss of 2.35%.

Market participants will be closely following the financial results of Philip Morris in its upcoming release. The company plans to announce its earnings on October 19, 2023. The company is forecasted to report an EPS of $1.61, showcasing a 5.23% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $9.18 billion, indicating a 14.26% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.07 per share and revenue of $35.58 billion. These totals would mark changes of +1.51% and +12.01%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Philip Morris. These revisions help to show the ever-changing nature of near-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. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 2.39% lower within the past month. Philip Morris is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, Philip Morris is holding a Forward P/E ratio of 15.34. Its industry sports an average Forward P/E of 8.75, so one might conclude that Philip Morris is trading at a premium comparatively.

We can additionally observe that PM currently boasts a PEG ratio of 2.08. 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 2.18 as of yesterday's close.

The Tobacco industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 177, placing it within the bottom 30% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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