"Sin" still sells. Tobacco products company Philip Morris International is often considered a part of the "sin" group of discretionary products stocks along with alcoholic beverages, marijuana and casinos. On Tuesday Philip Morris saw its stock Relative Strength (RS) Rating shoot up five points, rising from 70 to 75.
The 75 RS Rating means that Philip Morris stock is outperforming 75% of all other stocks. It's a step in the right direction. Research shows that stocks that go on to make the biggest gains tend to have an RS Rating north of 80 in the early stages of their moves. See if Philip Morris can continue to rebound and clear that threshold.
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Philip Morris Stock Building Fresh Base
Tobacco giant Philip Morris is working on a double bottom pattern with a 102.29 buy point. See if it can clear the breakout price in heavy volume. Philip Morris stock rose 1% to near 99 Wednesday afternoon. It's climbed about 17% from a Sept. 30 low at 82.85 despite weak profits. Investors may be betting on stronger profit growth and sales next year.
The New York-based company on its website says it's moving toward what it calls a healthier "smokeless" future by introducing smoke-free alternatives like vapor products. Critics have said that vapor products may be healthier than inhaling smoke but they are still not healthy for users.
The company reported a 4% dip in earnings last quarter to $1.53 per share. However, that was improved from a 6% decline the prior quarter. Revenue slid 3% in its latest quarter, to $20.9 billion.
Peers In Top 5 Group
Philip Morris stock holds the No. 4 rank among its peers in the Tobacco industry group. Vector Group and Altria Group are also among the group's highest-rated stocks.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
This exclusive Relative Strength Rating from Investor's Business Daily measures market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the trailing 52 weeks compares to all the other stocks in our database.
