Philip Morris International Inc. (PM): Today's Featured Tobacco 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 2.6%. By the end of trading, Philip Morris International fell $3.63 (-4.0%) to $86.63 on heavy volume. Throughout the day, 9,449,835 shares of Philip Morris International exchanged hands as compared to its average daily volume of 5,017,300 shares. The stock ranged in price between $86.33-$89.86 after having opened the day at $89.84 as compared to the previous trading day's close of $90.26. Other companies within the Tobacco industry that declined today were: British American Tobacco ( BTI), down 3.8%, Reynolds American ( RAI), down 2.8% and Altria Group ( MO), down 2.4%.
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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 $151.5 billion and is part of the consumer goods sector. The company has a P/E ratio of 17.8, above the S&P 500 P/E ratio of 17.7. Shares are up 7.9% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate Philip Morris International a buy, no analysts rate it a sell, and 3 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 revenue growth, growth in earnings per share and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and weak operating cash flow.

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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