Philip Morris (NYSE: PM) recently reported its fourth-quarter results, with revenues slightly exceeding expectations but earnings falling short of street estimates. While the stock has experienced a 7% decline this year, we believe there is potential for growth ahead. The company reported revenue of $9.05 billion, slightly above the estimated $9.01 billion, but its adjusted earnings of $1.36 per share fell short of the consensus estimate of $1.45. In this blog, we will discuss Philip Morris' stock performance, key takeaways from its recent results, and its valuation.
The performance of PM stock has been relatively stagnant over the past three years, with it moving from around $85 in early 2021 to around $90 currently, compared to a 35% increase in the S&P 500. PM stock's performance has been volatile when compared to the index. The stock saw returns of 15% in 2021, 7% in 2022, and -7% in 2023. In contrast, the S&P 500 had returns of 27% in 2021, -19% in 2022, and 24% in 2023, indicating PM's underperformance in 2021 and 2023.
