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Philip Morris (PM) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Philip Morris (PM) closed the most recent trading day at $84.67, moving +0.74% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.01%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 0.2%.

Coming into today, shares of the seller of Marlboro and other cigarette brands had gained 0.49% in the past month. In that same time, the Consumer Staples sector gained 2.94%, while the S&P 500 gained 2.67%.

Wall Street will be looking for positivity from PM as it approaches its next earnings report date. On that day, PM is projected to report earnings of $1.25 per share, which would represent no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $7.75 billion, up 3.31% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.21 per share and revenue of $29.88 billion, which would represent changes of +2.16% and +0.87%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PM. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.98% lower. PM currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, PM is holding a Forward P/E ratio of 16.13. Its industry sports an average Forward P/E of 12.97, so we one might conclude that PM is trading at a premium comparatively.

Also, we should mention that PM has a PEG ratio of 2.07. 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 industry currently had an average PEG ratio of 1.86 as of yesterday's close.

The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% 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.

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


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