Philip Morris's most recent trend suggests a bullish bias. One trading opportunity on Philip Morris is a Bull Put Spread using a strike $87.50 short put and a strike $82.50 long put offers a potential 16.28% return on risk over the next 29 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $87.50 by expiration. The full premium credit of $0.70 would be kept by the premium seller. The risk of $4.30 would be incurred if the stock dropped below the $82.50 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 79.47 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
Is Philip Morris International (PM) Stock Outpacing Its Consumer Staples Peers This Year?
Mon, 18 Mar 2019 13:30:01 +0000
Is (PM) Outperforming Other Consumer Staples Stocks This Year?
Philip Morris and Altria: How Do Valuation Multiples Compare?
Fri, 15 Mar 2019 13:00:02 +0000
Will Upward Momentum Continue for Altria and Philip Morris?(Continued from Prior Part)Philip Morris’s valuation multiple As the graph below shows, Philip Morris International’s (PM) valuation multiple has increased since the beginning of 2019.
Altria and Philip Morris: Do Dividend Yields Look Attractive?
Fri, 15 Mar 2019 11:31:15 +0000
Will Upward Momentum Continue for Altria and Philip Morris?(Continued from Prior Part)Importance of dividends Dividends smoothen out return volatility for shareholders. Both Altria Group (MO) and Philip Morris International (PM) have a history of
7 Dividend Stocks to Buy Today
Thu, 14 Mar 2019 19:38:06 +0000
U.S. equities are pausing for breath on Thursday, amid nagging concerns about the fate of U.S.-China trade talks and ongoing woes for Boeing (NYSE:BA) after President Trump grounded the 787 MAX — becoming the last country to do so after two fatal crashes of similar circumstances in the last five months.The drag on the Dow Jones Industrial Average, of which Boeing is a component, means that index hasn't gone anywhere in over a month. And zooming out further, it hasn't gone anywhere since last summer when the 25,500 level was first crossed in July. * 7 Winning High-Yield Dividend Stocks With Payouts Over 5% As investors wait for action, it's a perfect time to be reminded of the allure of dividend stocks which literally pay you to wait. While large-cap, big-tech growth stocks have been getting all the attention in recent years, there is still a place for value-focused dividend stocks. Here are seven dividend stocks to check out:InvestorPlace – Stock Market News, Stock Advice & Trading Tips Philip Morris International (PM)Philip Morris International (NYSE:PM) pays a dividend yield of 5.1%. On a technical basis, it's in clear uptrend territory: 3.5% above its 20-day moving average, 14.4% above its 50-day average, and 9.8% above its 200-day average. Shares were recently upgraded to buy by analysts at UBS, who are looking for a $101 price target.The company will next report results on April 18 before the bell. Analysts are looking for earnings of $1.02 per share on revenues of $6.8 billion. When the company last reported results on February 7, earnings of $1.25 beat estimates by nine cents on a 9.6% decline in revenues. Altria Group (MO)Shares of Altria (NYSE:MO) pay a dividend yield of 5.7%. The stock is on the move but not yet overextended: While above its 20-day and 50-day moving averages, its still below its 200-day average. * 7 Stocks to Buy With High ESG Momentum The company will next report results on April 25 before the bell. Analysts are looking for earnings of 94 cents per share on revenues of $4.6 billion. When the company last reported on January 31, earnings of 95 cents per share matches estimates on a 1.5% rise in revenues. The Williams Companies (WMB)Shares of The Williams Companies (NYSE:WMB) pay a dividend yield of 5.5%. The stock is above all three of its major moving averages, but remains 13.9% below its prior 52-week high. The energy pipeline play is well positioned to take advantage of the infrastructure shortage limiting the blitz of U.S. shale oil and gas activity.The company will next report results on May 1 after the close. Analysts are looking for earnings of 23 cents per share on revenues of $2.3 billion. When the company last reported on February 13, earnings of 19 cents per share missed estimates by five cents. Weyerhaeuser (WY)Weyerhaeuser (NYSE:WY) shares pay a dividend yield of 5.2%. Shares are above their 20-day and 50-day moving averages, but remain more than 14% below their 200-day average and nearly a third below the prior 52-week high. Shares recently enjoyed an upgrade by analysts at BMO Capital Markets and were initiated with a buy rating by analysts at Seaport Global Securities. * Are These 3 Airline Stocks in for a Smooth Flight or More Turbulence? The company will next report results on April 26 before the bell. Analysts are looking for earnings of 12 cents per share on revenues of $1.7 billion. When the company last reported on February 1, earnings of 10 cents per share missed estimates by two cents on a 10.3% drop in revenues. Seagate (STX)Seagate (NASDAQ:STX) shares pay a dividend yield of 5.3%. The company is quickly closing in on its 200-day moving average. Semiconductor and memory stocks have been perking up in recent weeks on reports of lean inventories across the industry and hopes of a resurgence of demand for digital devices as global manufacturing recovers.The company will next report results on May 1 after the close. Analysts are looking for earnings of 71 cents per share on revenues of $2.3 billion. When the company last reported on February 4, earnings of $1.41 beat estimates by 14 cents on a 6.6% drop in revenues. Invesco (IVZ)Invesco (NYSE:IVZ) shares pay a dividend yield of 6.2%. Shares are above both their 20-day and 50-day moving averages, but are still more than 12% below their 200-day average and more than 40% away from their prior 52-week high. Barclays analysts recently highlighted management's ongoing effort to find $475 million in cost savings, which would provide an earnings tailwind. * 15 Stocks Sitting on Huge Piles of Cash The company will next report results on April 25 before the bell. Analysts are looking for earnings of 49 cents per share on revenues of $861.5 million. When the company last reported on January 30, earnings of 44 cents per share missed estimates by 11 cents on an 8.5% drop in revenues. Nielsen Holdings (NLSN)Nielsen Holdings (NYSE:NLSN) shares pay a dividend yield of 5.2%. Shares are on a roll, above all three of their major moving averages as they close in on their prior 52-week high which remains 22% to the upside. The company is enjoying a lift thanks to the surge of television programming — both over-the-air, cable, and streaming — and the need for programmers to get solid audience data to make production decisions. Activist investor Elliott Management recently purchased a stake.The company will next report results on April 25 before the bell. Analysts are looking for earnings of 32 cents per share on revenues of $1.6 billion. When the company last reported on February 28 earnings of 28 cents per share missed estimates by 27 ents on a 5.8% drop in revenues.As of this writing, William Roth held no positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Stocks Sitting on Huge Piles of Cash * The 10 Best Stocks to Buy for the Bull Market's Anniversary * 7 Dividend Stocks With Big Yields Compare Brokers The post 7 Dividend Stocks to Buy Today appeared first on InvestorPlace.
3 Tobacco Stocks That Will Perform Well Despite FDA Regulations
Thu, 14 Mar 2019 19:07:29 +0000
Tobacco stocks recently took a dive on news of the latest Food and Drug Administration (FDA) hire. Investors sold these stocks off as Health and Human Services (HHS) secretary Alex Azar named National Cancer Institute director Ned Sharpless as the interim head of the FDA.Tobacco stocks had initially risen upon news of the resignation of outgoing FDA head Scott Gottlieb. Gottlieb had wanted to lower nicotine levels in cigarettes and ban menthol cigarettes. Now, with Dr. Sharpless in charge, these initiatives could continue to move forward.However, investors should remember that the Surgeon General's report outlining the dangers of smoking came out in 1964. Despite decreased use of the product in the U.S., tobacco stocks have steadily risen in the 55 years since the release of that report. Moreover, hemp legalization, as well as the full legal status of cannabis in several U.S. states could become a source for profit growth.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * The 10 Best Stocks to Buy for the Bull Market's Anniversary Still, no matter the length of Dr. Sharpless's tenure at the FDA, all tobacco stocks will face regulatory challenges. However, by adapting to the regulatory environment and finding new segments of growth, these tobacco stocks can maintain generous dividends and continue offering returns: Altria (MO)Source: Peyri Herrera via Flickr (Modified)As the owner of the popular Marlboro brand, Altria (NYSE:MO) remains one of the more profitable tobacco stocks. Like its peers, MO stock fell upon the news from the FDA. Given the background of Dr. Sharpless, one has to assume he will continue Dr. Gottlieb's anti-tobacco initiatives.However, I think this will serve as a non-event for MO stock. The equity recovered its post-announcement losses in a day. In my view, that recovery signals that the hire of Dr. Sharpless means the status quo, not further bad news.Profit estimates for this year have fallen from $4.32 per share 90 days ago to $4.20 per share today. However, that is old news. Investors also know that profit growth will average 6.91% per year, over the next five years. While this represents a slowdown from the 11.51% per year growth rate over the previous five years, investors have also priced that news into MO.Meanwhile, the company continues to build new sources of revenue. Altria invested $12.8 billion in electronic cigarette maker Juul. Moreover, with the company's $1.8 billion investment in Cronos (NASDAQ:CRON), cannabis can also serve as a new source of revenue.Even if anti-tobacco initiatives harm their traditional business, Altria appears to keep increasing profits and payouts. The dividend yield currently stands at about 5.7%. This payout has risen for ten straight years. Moreover, investors who have held the stock since 2003 and reinvested the dividends now earn back their original investment every year in dividends alone. Hence, while the tenure of Dr. Sharpless could affect stock price growth, MO stock is still likely to continue to deliver returns. Imperial Brands (IMBBY)Source: Shutterstock Those wanting tobacco stocks free from a harsh U.S. regulatory environment pay turn to Imperial Brands (OTCMKTS:IMBBY). This seller of the popular Kool and Winston brands sells tobacco products in more than 160 countries. It also leads the world in fine-cut tobacco products and serves as the leading seller of cigars in several of its markets.The U.S. accounted for about 21.7% of its revenue in 2018. Although this leaves most of the business outside the confines of the FDA regulation, IMBBY stock has suffered like most tobacco stocks as consumers around the world have increasingly turned away from tobacco.Interestingly, the company itself has followed this anti-tobacco trend. In 2016, IMBBY changed its name from Imperial Tobacco to Imperial Brands to reflect all of its lines of business. Like its major peers, Imperial has moved into e-cigarettes. IMBBY has also entered the cannabis business. In 2018, its subsidiary Imperial Brands Ventures invested in Oxford Cannabinoid. This gave Imperial a stake in the market of cannabis-based medicines.Moreover, Imperial has outperformed its peers in one area–dividends. This year's payout of $3.44 per share takes the yield to about 10%. Although the company cut this payout in 2016, it has risen over time. * 10 Dividend Stock Winners As an equity, IMBBY stock may not see big gains in the near term as slowing tobacco use and FDA regulation weigh on the company. However, the company now seeks to revive its fortunes in cannabis and e-cigarettes. This should leave Imperial Brands well-positioned to continue its generous payouts. Philip Morris International (PM)Source: Shutterstock Of the global tobacco stocks, none stand in a better position to avoid the FDA than Philip Morris (NYSE:PM). This company once acted as the offshore arm of Altria and became a separate firm in 2008. Other than possible issues related to its New York City base of operations, its offshore markets leave the FDA with little power to regulate PM.Philip Morris retains the rights to sell Marlboro and other brands outside of the U.S. However, investors should think of PM stock as more than "non-U.S. Altria." It has also separated itself from other tobacco stocks by stating a desire to leave the tobacco business.The company has invested heavily in its iQOS e-cigarette brand. The company hopes iQOS will satisfy both consumers and regulators to the point that it replaces tobacco. At least so far, PM has also chosen not to enter the cannabis space. CEO Andre Calantzopoulos cited his hopes for iQOS as one reason why.Still, PM stock has behaved like a tobacco equity. Like its peers, it has fallen over the last year. Moreover, it has retained the dividend philosophy of its former parent. PM has increased its payout every year since its founding. This year's dividend of $4.56 per share yields about 5.1%. Predicted growth rates of 5.9% this year and 8.5% in 2020 should help the company fund further payout hikes.It remains unclear whether its iQOS-focused strategy will pay off in the long run. However, the non-U.S. focus protects PM stock from most FDA scrutiny. Moreover, its market positioning and generous dividend should make Philip Morris a long-term winner for income-focused investors.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 15 Stocks Sitting on Huge Piles of Cash * The 10 Best Stocks to Buy for the Bull Market's Anniversary * 7 Dividend Stocks With Big Yields Compare Brokers The post 3 Tobacco Stocks That Will Perform Well Despite FDA Regulations appeared first on InvestorPlace.
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