Is Philip Morris (PM, $82.31) Reducing Cigarette Output For Less-Hazardous Alternatives?
In an environment of increasingly health-conscious consumers and heightened health regulatory measures, Phillip Morris International seems to be tapering its cigarette business to focus more on healthier alternatives.
In 2018, the company plans to invest almost $600 million in reduced risk products (RRP’s) or low-risk smoking alternatives – which includes its smokeless cigarettes, iQOS. Additionally, the company is transforming more and more of its plants from cigarette to RRP manufacturing facilities.
Apparently to boost its move towards healthier alternatives, Philip Morris recently made a deal with Canada-based Parallax that provides low-risk alternatives of tobacco.
Not only are more consumers becoming health-conscious, but the FDA is also tightening its leash on cigarette producers. The regulatory body has made it mandatory for tobacco companies to use precautionary labels on cigarette packets, and is reportedly trying to have manufacturers to reduce nicotine to low levels in their cigarettes. The effects might already be seeping in. During Q2 2018, Philip Morris total cigarette shipment volume declined 1.5% in Q2, following a 5.3% fall in its shipment volumes Q1.
PM in +1.57% Uptrend, rising for three consecutive days on June 30, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where PM advanced for three days, in of 383 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 51 cases where PM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 364 cases where PM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for PM moved out of overbought territory on June 04, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 53 similar instances where the indicator moved out of overbought territory. In of the 53 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on June 26, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on PM as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for PM turned negative on June 09, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 69, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. PM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: PM's P/B Ratio (0.000) is slightly lower than the industry average of (3.589). P/E Ratio (28.686) is within average values for comparable stocks, (20.144). Projected Growth (PEG Ratio) (1.338) is also within normal values, averaging (0.992). Dividend Yield (0.030) settles around the average of (0.055) among similar stocks. PM's P/S Ratio (7.386) is very high in comparison to the industry average of (2.122).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a manufacturer of cigarettes and other tobacco products
Industry Tobacco
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