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.

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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
Investing.com – 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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