Philip Morris (PM) Offering Possible 7.42% Return Over the Next 9 Calendar Days

Philip Morris's most recent trend suggests a bullish bias. One trading opportunity on Philip Morris is a Bull Put Spread using a strike $66.50 short put and a strike $61.00 long put offers a potential 7.42% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $66.50 by expiration. The full premium credit of $0.38 would be kept by the premium seller. The risk of $5.12 would be incurred if the stock dropped below the $61.00 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Philip Morris is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Philip Morris is bullish.

The RSI indicator is at 20.27 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Philip Morris

World’s Biggest Tobacco Seller Eyes an IPO Spinoff
Tue, 08 Jan 2019 02:50:00 +0000
But investors would only get a small slice of the state-owned business — and not the part most would want most.

Why Philip Morris International Stock Lost 23% Last Month
Tue, 08 Jan 2019 00:23:00 +0000
Shares of the cigarette giant dropped on an analyst downgrade and a competitor's news.

Altria Stock Falls on Cowen’s Downgrade
Mon, 07 Jan 2019 18:13:19 +0000
Altria Stock Falls on Cowen's Downgrade

## Cowen’s downgrade

Today, Cowen and Company downgraded Altria Group (MO) from “outperform” to “market perform” due to the accelerating decline in Altia’s cigarette sales. Also, Cowen lowered its 12-month price target from $74 to $53. The new price target represents an upside potential of 5.4% from its January 4 closing price of $50.30.

As CNBC reported, Cowen expects Altria’s cigarette volumes to decline at an annual rate of 7.3% over the next five years, compared to a decline of 3.1% over its previous five years. Weighing in on Altria’s recent investment in e-cigarette manufacturer Juul, Vivien Azer of Cowen said, “Although the Juul investment was likely the right move, Altria is incentivized to accelerate cigarette industry volume declines.”

## Other analysts’ recommendations

Of the 17 analysts that cover Altria, 52.9% have given the stock a “buy” rating while 35.3% favor a “hold” and 11.8% favor a “sell” rating. On average, analysts have set a 12-month price target of $59.29, which represents an upside potential of 17.9% from its January 4 closing price. On December 21, Citigroup downgraded Altria from “neutral” to “sell” and also lowered its price target from $67 to $45. On the same day, Stifel also cut its price target from $70 to $59.

## Peer comparisons

Among the 19 analysts who follow Philip Morris International (PM), 52.6% recommended a “buy,” 36.8% recommended a “hold,” and 10.5% recommended a “sell.” On average, analysts have a 12-month target price of $91.00, which represents an upside potential of 30.8% from its stock price of $69.55.

## Stock performance

Cowen’s downgrade appears to have led the company’s stock price to fall. As of 12:20 AM ET today, Altria was trading 2.2% lower. Last year was a tough year for Altria. Since the beginning of 2018, the company’s stock price has declined 29.6%. Meanwhile, peer Philip Morris has returned -34.2%. The broader comparative index, the Consumer Staples Select Sector SPDR ETF (XLP), which has invested 8.2% of its portfolio in cigarettes and tobacco companies, has declined 9.6%.

Altria, Philip Morris Stock Faces Rising Threat From Vaping
Mon, 07 Jan 2019 16:36:00 +0000
E-cigarettes are eating into the market for traditional products at a fast clip, and that’s bad news for Altria Group and Philip Morris International, says Cowen & Co.

Philip Morris Falls 3%
Mon, 07 Jan 2019 15:58:02 +0000 – Philip Morris (NYSE:PM) fell by 3.11% to trade at $67.39 by 15:57 (20:57 GMT) on Monday on the NYSE exchange.

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