Philip Morris (PM) closed at $89.17 in the latest trading session, marking a -0.35% move from the prior day. This change was narrower than the S&P 500's 0.92% loss on the day. At the same time, the Dow lost 0.77%, and the tech-heavy Nasdaq lost 1.65%.
Coming into today, shares of the seller of Marlboro and other cigarette brands had gained 8.71% in the past month. In that same time, the Consumer Staples sector gained 0.44%, while the S&P 500 lost 2.56%.
Investors will be hoping for strength from PM as it approaches its next earnings release, which is expected to be February 14, 2019. In that report, analysts expect PM to post earnings of $1.19 per share. This would mark a year-over-year decline of 9.16%. Meanwhile, our latest consensus estimate is calling for revenue of $7.37 billion, down 11.19% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.02 per share and revenue of $29.47 billion, which would represent changes of +1.83% and +2.5%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for PM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.46% higher. PM is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, PM currently has a Forward P/E ratio of 17.84. Its industry sports an average Forward P/E of 14.45, so we one might conclude that PM is trading at a premium comparatively.
It is also worth noting that PM currently has a PEG ratio of 2.05. 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. Tobacco stocks are, on average, holding a PEG ratio of 1.96 based on yesterday's closing prices.
The Tobacco industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 37% 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.
To follow PM in the coming trading sessions, be sure to utilize Zacks.com.
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