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Philip Morris Stock Trading Above 200 & 50-Day SMA: Should You Buy?
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Philip Morris International Inc. (PM - Free Report) has demonstrated impressive upward momentum, consistently trading above its 200-day and 50-day simple moving averages (SMA), key indicators of price stability and long-term bullish trends. As of Sept. 18, PM was trading at $120.96, which surpassed both its 200-day SMA of $99.21 and 50-day SMA of $117.16, highlighting a continued uptrend.
Image Source: Zacks Investment Research
SMA is a key tool in technical analysis used to assess price trends by smoothing out short-term fluctuations, offering a clearer view of the stock's longer-term direction. This technical strength, along with the stock's sustained momentum, reflects positive market sentiment and investor confidence in Skechers' financial health and growth prospects.
Shares of Philip Morris have seen a solid 19.5% jump in the past three months compared with the industry’s growth of 18.9%. The company outpaced the broader Consumer Staples sector's 8.4% increase and the S&P 500 Index's 2.6% rise over the said period. Currently, PM is trading 5.7% below its 52-week high of $128.22 reached on Sept. 9.
Image Source: Zacks Investment Research
Pricing Strategy Fuels Philip Morris’ Performance
Philip Morris’ effective pricing strategy has enabled it to maintain profitability despite declining cigarette shipment volumes. Although higher prices might reduce consumption, the addictive nature of cigarettes often leads consumers to absorb these increases, ensuring continued revenues. The company anticipates a 7-8% rise in combustible product pricing in 2024.
PM Gains on Progress in Smoke-Free Transition
With an increasing consumer preference for reduced-risk products (RRPs), Philip Morris is making significant strides in its business transformation. Smoke-free products contributed 38.1% of the company’s net revenues in the second quarter of 2024. Philip Morris aims to derive more than two-thirds of its total revenues from smoke-free products by 2030. The company’s IQOS, a heat-not-burn device, remains a leading RRP in the industry.
Philip Morris also became the majority owner of Swedish Match on Nov. 11, 2022, which has shown strong performance due to its ZYN product. On Jan. 30, 2023, the company announced a long-term partnership with KT&G to market KT&G’s innovative smoke-free devices and consumables outside South Korea. Philip Morris has advanced this partnership with a new memorandum of understanding to collaborate on regulatory approval for KT&G’s new heat-not-burn products in the United States.
In the second quarter of 2024, revenues from the smoke-free business rose 13.6% (up 18.3% on an organic basis). In the quarter, the company witnessed continued strength in IQOS performance. Within the smoke-free business, inhalable smoke-free products (SFP) were driven by strength in IQOS, while oral SFP was fueled by increased shipment volumes of ZYN. Within e-vapor, VEEV is performing well and is treading toward profitability.
In 2024, management expects an acceleration in organic smoke-free net revenues and an increase in the gross profit from the 2023 levels. Management expects the total cigarette, HTU and oral smoke-free product shipment volume for Philip Morris to rise 1-2% in 2024, driven by smoke-free product strength. Smoke-free revenues are expected to reach nearly $15 billion in full-year 2024.
What to Expect From PM in 2024?
Philip Morris expects to witness a robust second-half performance and raised its full-year guidance for 2024 on its last earnings call despite the adverse currency movements. For 2024, PM now expects net revenues to increase 7.5-9% on an organic basis compared with 7-8.5% growth expected before. Apart from this, continued cost-saving initiatives position Philip Morris well to achieve its margin expansion goals and drive bottom-line growth despite ongoing currency headwinds.
In 2024, the operating income on an organic basis is likely to increase 11-13%, up from the 10-12% growth forecasted earlier. Adjusted EPS for 2024 is envisioned in the $6.33-$6.45 range, suggesting 5.3-7.3% growth. Adjusted EPS, excluding currency, is likely to be in the $6.67-$6.79 band, indicating a year-over-year increase of 11-13%. Adjusted EPS was previously anticipated between $6.19 and $6.31, whereas adjusted EPS, excluding currency, was envisioned in the $6.55-$6.67 range.
How Should Investors Approach PM Stock?
Philip Morris is poised for ongoing success, bolstered by its robust momentum, commitment to innovative smoke-free solutions and proven ability to drive profitability. This positions the company as a compelling investment opportunity in the changing tobacco landscape. Investing in Philip Morris at this juncture presents an opportunity to benefit from its growing success. The company currently holds a Zacks Rank #2 (Buy).
CHEF has a trailing four-quarter earnings surprise of 33.7%, on average. The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal year sales and earnings indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported numbers.
Flowers Foods (FLO - Free Report) , a packaged bakery food company, currently carries a Zacks Rank #2. FLO has a trailing four-quarter earnings surprise of 1.9%, on average.
The Zacks Consensus Estimate for Flowers Foods’ current financial-year sales and earnings implies growth of around 1% and 5%, respectively, from the year-ago reported numbers.
McCormick (MKC - Free Report) is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for McCormick & Company’s current fiscal-year sales and earnings indicates advancements of 0.1% and 5.6%, respectively, from the year-ago reported figures. MKC has a trailing four-quarter earnings surprise of 8.3%, on average.
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Philip Morris International Inc. (PM - Free Report) has demonstrated impressive upward momentum, consistently trading above its 200-day and 50-day simple moving averages (SMA), key indicators of price stability and long-term bullish trends. As of Sept. 18, PM was trading at $120.96, which surpassed both its 200-day SMA of $99.21 and 50-day SMA of $117.16, highlighting a continued uptrend.
Image Source: Zacks Investment Research
SMA is a key tool in technical analysis used to assess price trends by smoothing out short-term fluctuations, offering a clearer view of the stock's longer-term direction. This technical strength, along with the stock's sustained momentum, reflects positive market sentiment and investor confidence in Skechers' financial health and growth prospects.
Shares of Philip Morris have seen a solid 19.5% jump in the past three months compared with the industry’s growth of 18.9%. The company outpaced the broader Consumer Staples sector's 8.4% increase and the S&P 500 Index's 2.6% rise over the said period. Currently, PM is trading 5.7% below its 52-week high of $128.22 reached on Sept. 9.
Image Source: Zacks Investment Research
Pricing Strategy Fuels Philip Morris’ Performance
Philip Morris’ effective pricing strategy has enabled it to maintain profitability despite declining cigarette shipment volumes. Although higher prices might reduce consumption, the addictive nature of cigarettes often leads consumers to absorb these increases, ensuring continued revenues. The company anticipates a 7-8% rise in combustible product pricing in 2024.
PM Gains on Progress in Smoke-Free Transition
With an increasing consumer preference for reduced-risk products (RRPs), Philip Morris is making significant strides in its business transformation. Smoke-free products contributed 38.1% of the company’s net revenues in the second quarter of 2024. Philip Morris aims to derive more than two-thirds of its total revenues from smoke-free products by 2030. The company’s IQOS, a heat-not-burn device, remains a leading RRP in the industry.
Philip Morris also became the majority owner of Swedish Match on Nov. 11, 2022, which has shown strong performance due to its ZYN product. On Jan. 30, 2023, the company announced a long-term partnership with KT&G to market KT&G’s innovative smoke-free devices and consumables outside South Korea. Philip Morris has advanced this partnership with a new memorandum of understanding to collaborate on regulatory approval for KT&G’s new heat-not-burn products in the United States.
In the second quarter of 2024, revenues from the smoke-free business rose 13.6% (up 18.3% on an organic basis). In the quarter, the company witnessed continued strength in IQOS performance. Within the smoke-free business, inhalable smoke-free products (SFP) were driven by strength in IQOS, while oral SFP was fueled by increased shipment volumes of ZYN. Within e-vapor, VEEV is performing well and is treading toward profitability.
In 2024, management expects an acceleration in organic smoke-free net revenues and an increase in the gross profit from the 2023 levels. Management expects the total cigarette, HTU and oral smoke-free product shipment volume for Philip Morris to rise 1-2% in 2024, driven by smoke-free product strength. Smoke-free revenues are expected to reach nearly $15 billion in full-year 2024.
What to Expect From PM in 2024?
Philip Morris expects to witness a robust second-half performance and raised its full-year guidance for 2024 on its last earnings call despite the adverse currency movements. For 2024, PM now expects net revenues to increase 7.5-9% on an organic basis compared with 7-8.5% growth expected before. Apart from this, continued cost-saving initiatives position Philip Morris well to achieve its margin expansion goals and drive bottom-line growth despite ongoing currency headwinds.
In 2024, the operating income on an organic basis is likely to increase 11-13%, up from the 10-12% growth forecasted earlier. Adjusted EPS for 2024 is envisioned in the $6.33-$6.45 range, suggesting 5.3-7.3% growth. Adjusted EPS, excluding currency, is likely to be in the $6.67-$6.79 band, indicating a year-over-year increase of 11-13%. Adjusted EPS was previously anticipated between $6.19 and $6.31, whereas adjusted EPS, excluding currency, was envisioned in the $6.55-$6.67 range.
How Should Investors Approach PM Stock?
Philip Morris is poised for ongoing success, bolstered by its robust momentum, commitment to innovative smoke-free solutions and proven ability to drive profitability. This positions the company as a compelling investment opportunity in the changing tobacco landscape. Investing in Philip Morris at this juncture presents an opportunity to benefit from its growing success. The company currently holds a Zacks Rank #2 (Buy).
3 Other Staple Stocks Worth Betting On
The Chef’s Warehouse (CHEF - Free Report) , which engages in the distribution of specialty food products, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CHEF has a trailing four-quarter earnings surprise of 33.7%, on average. The Zacks Consensus Estimate for The Chef’s Warehouse’s current fiscal year sales and earnings indicates growth of 9.7% and 12.6%, respectively, from the year-ago reported numbers.
Flowers Foods (FLO - Free Report) , a packaged bakery food company, currently carries a Zacks Rank #2. FLO has a trailing four-quarter earnings surprise of 1.9%, on average.
The Zacks Consensus Estimate for Flowers Foods’ current financial-year sales and earnings implies growth of around 1% and 5%, respectively, from the year-ago reported numbers.
McCormick (MKC - Free Report) is a leading manufacturer, marketer and distributor of spices, seasonings, specialty foods and flavors. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for McCormick & Company’s current fiscal-year sales and earnings indicates advancements of 0.1% and 5.6%, respectively, from the year-ago reported figures. MKC has a trailing four-quarter earnings surprise of 8.3%, on average.