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Philip Morris International Inc. (PM)

PM stock forecast: buy or sell

Close on Oct 23rd, 2020
$74.45 -0.55%
3 months performance
-3.70%
Published: October 25th, 2020 - 5.39pm EDT

PM stock outlook

  • Philip Morris closed on Friday at $74.45 after slightly changing a -0.55%.
  • On Tuesday, Philip Morris presented its Q3 earnings report
  • Argus published a hold rating for Philip Morris on Friday
  • Philip Morris International Inc., through its subsidiaries, manufactures and sells cigarettes, other nicotine-containing products, smoke-free products, and related electronic devices and accessories.

Please read:
The viewpoints published in this post are personal and should not be followed as recommendations for you to buy or sell stocks. The author of this article does not know the specific scenarios of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Thoughts are expressed for informational purposes only

PM stock charts

Should I buy Philip Morris stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $PM stock a buy?

In the current situation of Philip Morris there is not any eligible buy setup. This doesn't mean $PM will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell Philip Morris stock?

When you are a novel trader and you own a stock with some profit, it's really difficult to decide the best moment to sell and get your benefits. As when we have to buy shares, determining when is appropiate to sell is not a fickle decision, and we must adhere our own trading style. Our trading system selects very simple strategies to guide us on when is a good moment to sell our shares. Be aware that these strategies should not be used for shorting $PM stock

A guiding principle is that you should never keep an open trade that results in higher than expected losses at the time of purchase. The moment to sell your stock must always be dictated by the stop-loss (automatic or manual)

Is it time to sell Philip Morris stock?

Currently, Philip Morris stock doesn't match any of our preferred sell setups, so if you hold Philip Morris stock and your operation is in profit probably is not time to sell now

Analysts' recommendations to buy or sell Philip Morris stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last 30 days, 2 analyst ratings were published for Philip Morris

Philip Morris ratings

Brokerage firmRating
Oct 7th, 2020
Citigroup NeutralStrong buy
Oct 23rd, 2020
Argus Strong buyNeutral

Technical analysis

SMAs overview

Moving averages are simple tools for investors to gauge momentum. A moving average is the average price of a stock over a set period of time. Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

PM SMAs chart

Supports and resistances

Technical analysts use support and resistance levels as a way to spot price points on a chart that tend to behave as barriers, containing the price of an asset to move in certain direction. A support level is a level where the price may find support as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down the support, it will probably continue falling until meeting another support level. On the other hand, a resistance level is where the price tends to find resistance as it rises. In the same way, the price is more liable to "bounce off" at this level, and if it finally ruptures this level, it will rise more easily until it hits the next resistance

The current resistances are:

  • R1: $75.03 (0.78% above)
  • R2: $75.16 (0.95% above)
  • R3: $75.37 (1.24% above)
  • The current supports are:

  • S1: $73.79 (-0.89% below)
  • S2: $73.45 (-1.34% below)
  • S3: $73.30 (-1.54% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. It consists of three bands that are plotted superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    The price is moving very close to the lower Bollinger band, poiting some level of oversold in recent sessions. This is not a buy point, as price can trade in these levels for many days and weeks

    PM RSI chart

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that measures price changes to reveal when the price of a share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by stock traders

    When the RSI moves for so long below 70 and above 30, without indication of overbought and oversold, the indicator is of little use, and we are currently in such a case.

    PM RSI chart

    Earnings and financials

    Philip Morris International Inc. ($PM) posted quarterly earnings of $1.42 per share on Tuesday, slightly surpassing the Market consensus estimate of $1.36 per share. This quarterly report means an earnings surprise of 4.41%. On the contrary, the company said turnover was $7.4 billion aligned with the market forecasts.

    This compares to earnings of $1.43 per share same quarter last year, so current EPS is a loss of -0.7%. Looking at sales, figures merely changed compared to $7.6B same quarter last year.

    PM ($PM) posts Q4 earnings report next February 2021.

    PM revenues and profits chart