Trade-Ideas: Philip Morris International (PM) Is Today's Unusual Social Activity Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified Philip Morris International (PM) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Philip Morris International as such a stock due to the following factors:
- PM has more that 20x the normal benchmarked social activity for this time of the day compared to its average of 2.19 mentions/day.
- PM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $373.2 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.EXCLUSIVE OFFER: Get the inside scoop on opportunities in PM with the Ticky from Trade-Ideas. See the FREE profile for PM NOW at Trade-IdeasMore details on PM: Philip Morris International Inc., through its subsidiaries, manufactures and sells cigarettes and other tobacco products. The stock currently has a dividend yield of 3.8%. PM has a PE ratio of 17.3. Currently there are 9 analysts that rate Philip Morris International a buy, no analysts rate it a sell, and 3 rate it a hold.The average volume for Philip Morris International has been 5.2 million shares per day over the past 30 days. Philip Morris International has a market cap of $147.1 billion and is part of the consumer goods sector and tobacco industry. The stock has a beta of 0.89 and a short float of 0.7% with 2.63 days to cover. Shares are up 7.3% year to date as of the close of trading on Wednesday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates Philip Morris International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow.Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 6.8%. Since the same quarter one year prior, revenues slightly increased by 1.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- PHILIP MORRIS INTERNATIONAL's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PHILIP MORRIS INTERNATIONAL increased its bottom line by earning $5.18 versus $4.84 in the prior year. This year, the market expects an improvement in earnings ($5.56 versus $5.18).
- The gross profit margin for PHILIP MORRIS INTERNATIONAL is rather high; currently it is at 69.79%. Regardless of PM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PM's net profit margin of 28.01% compares favorably to the industry average.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Tobacco industry average. The net income has decreased by 1.7% when compared to the same quarter one year ago, dropping from $2,161.00 million to $2,125.00 million.
- In its most recent trading session, PM has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full Philip Morris International Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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