Philip Morris (PM) closed the most recent trading day at $102.92, moving +0.88% from the previous trading session. This move outpaced the S&P 500’s daily loss of 1.89%. Meanwhile, the Dow lost 1.3%, and the Nasdaq, a tech-heavy index, lost 0.17%.
Coming into today, shares of the seller of Marlboro and other cigarette brands had gained 9.78% in the past month. In that same time, the Consumer Staples sector gained 1.88%, while the S&P 500 lost 1.79%.
Philip Morris will be looking to display strength as it nears its next earnings release, which is expected to be February 10, 2022. In that report, analysts expect Philip Morris to post earnings of $1.30 per share. This would mark year-over-year growth of 3.17%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.79 billion, up 4.7% from the year-ago period.
Any recent changes to analyst estimates for Philip Morris should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.18% lower. Philip Morris is holding a Zacks Rank of #4 (Sell) right now.
Digging into valuation, Philip Morris currently has a Forward P/E ratio of 16.18. Its industry sports an average Forward P/E of 9.45, 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 2.06. 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. PM’s industry had an average PEG ratio of 2.06 as of yesterday’s close.
The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 244, which puts it in the bottom 5% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.