Philip Morris International Inc. (PM): Tobacco's Featured Daily Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Philip Morris International ( PM) pushed the Tobacco industry lower today making it today's featured Tobacco laggard. The industry as a whole closed the day down 2.9%. By the end of trading, Philip Morris International fell $2.33 (-2.4%) to $94.11 on average volume. Throughout the day, 4.9 million shares of Philip Morris International exchanged hands as compared to its average daily volume of five million shares. The stock ranged in price between $94.09-$96.17 after having opened the day at $95.94 as compared to the previous trading day's close of $96.44. Other companies within the Tobacco industry that declined today were: Alliance One International ( AOI), down 4.3%, Universal Corporation ( UVV), down 4.2%, and Reynolds American ( RAI), down 3.4%.
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Philip Morris International Inc., through its subsidiaries, manufactures and sells cigarettes and other tobacco products. Philip Morris International has a market cap of $156.99 billion and is part of the consumer goods sector. The company has a P/E ratio of 18.5, above the S&P 500 P/E ratio of 17.7. Shares are up 15.3% year to date as of the close of trading on Friday. Currently there are nine analysts that rate Philip Morris International a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Philip Morris International as a hold. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth and expanding profit margins. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the tobacco industry could consider PowerShares Dynamic Food & Beverage ( PBJ) while those bearish on the tobacco industry could consider PowerShares DB Agriculture Sht ETN ( ADZ).

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