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 a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Philip Morris International as such a stock due to the following factors:
- PM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $353.9 million.
- PM has traded 1.7 million shares today.
- PM traded in a range 241.5% of the normal price range with a price range of $2.47.
- PM traded below its daily resistance level (quality: 7 days, meaning that the stock is crossing a resistance level set by the last 7 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower. 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-Ideas More 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 4.1%. PM has a PE ratio of 17.4. 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 4.9 million shares per day over the past 30 days. Philip Morris International has a market cap of $146.8 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 0.6% with 2.52 days to cover. Shares are up 9.6% year to date as of the close of trading on Tuesday. 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 good cash flow from operations. 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. Highlights from the ratings report include:
- PM's revenue growth has slightly outpaced the industry average of 1.4%. Since the same quarter one year prior, revenues slightly increased by 0.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- PHILIP MORRIS INTERNATIONAL has improved earnings per share by 9.1% in the most recent quarter compared to the same quarter a year ago. 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 ($5.39 versus $5.18).
- The gross profit margin for PHILIP MORRIS INTERNATIONAL is rather high; currently it is at 69.43%. 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 29.51% compares favorably to the industry average.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Tobacco industry average. The net income increased by 5.1% when compared to the same quarter one year prior, going from $2,227.00 million to $2,340.00 million.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. We feel that the combination of its price rise over the last year and its current price-to-earnings ratio relative to its industry tend to reduce its upside potential.
- 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.