Philip Morris (PM) Gains But Lags Market: What You Should Know
Philip Morris (PM) closed the most recent trading day at $87.35, moving +0.38% from the previous trading session. This move lagged the S&P 500's daily gain of 1.97%. Meanwhile, the Dow gained 1.88%, and the Nasdaq, a tech-heavy index, added 0.25%.
Heading into today, shares of the seller of Marlboro and other cigarette brands had lost 8.87% over the past month, lagging the Consumer Staples sector's loss of 8.57% and outpacing the S&P 500's loss of 9.93% in that time.
Investors will be hoping for strength from Philip Morris as it approaches its next earnings release, which is expected to be October 20, 2022. The company is expected to report EPS of $1.40, down 11.39% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.17 billion, down 11.75% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.84 per share and revenue of $29.98 billion, which would represent changes of -3.95% and -4.53%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Philip Morris. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 2.36% lower. Philip Morris is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Philip Morris currently has a Forward P/E ratio of 14.89. For comparison, its industry has an average Forward P/E of 8.37, which means Philip Morris is trading at a premium to the group.
Investors should also note that PM has a PEG ratio of 3.43 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Tobacco industry currently had an average PEG ratio of 1.08 as of yesterday's close.
The Tobacco industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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