Yahoo Finance Why Philip Morris (PM) is a Top Value Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Philip Morris (PM)
Philip Morris International is progressing well with its business transformation in the face of consumers rising health consciousness and stern regulations to dissuade smoking. To this end, the tobacco giant has been expanding in the reduced risk products (RRPs) or smoke-free products category, evident from the launch of IQOS (a heating tobacco device) that counts amongst one of the leading RRPs in the industry.
PM is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 14X for the current fiscal year compared to the Tobacco industry's P/E of 9.1X. Additionally, PM has a PEG Ratio of 2.5 and a Price/Cash Flow ratio of 13.5X. Value investors should also note PM's Price/Sales ratio of 1.7X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.00 to $6.08 per share. PM has an average earnings surprise of 5.8%.
Investors should take the time to consider PM for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Philip Morris International Inc. (PM) : Free Stock Analysis Report
