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's RSI Indicator climbs out of oversold territory
The RSI Oscillator for PM moved out of oversold territory on November 04, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 20 similar instances when the indicator left oversold territory. In of the 20 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 25, 2025. You may want to consider a long position or call options on PM as a result. In of 84 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for PM just turned positive on November 07, 2025. Looking at past instances where PM's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
PM moved above its 50-day moving average on November 25, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PM advanced for three days, in of 387 cases, the price rose further within the following month. The odds of a continued upward trend are .
PM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 65 cases where PM's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The 50-day moving average for PM moved below the 200-day moving average on October 31, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 Aroon Indicator for PM entered a downward trend on November 12, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 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 66, placing this stock better than average.
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: P/B Ratio (0.000) is normal, around the industry mean (10.810). P/E Ratio (22.327) is within average values for comparable stocks, (21.681). Projected Growth (PEG Ratio) (1.021) is also within normal values, averaging (0.955). Dividend Yield (0.035) settles around the average of (0.048) among similar stocks. PM's P/S Ratio (6.094) is slightly higher than the industry average of (2.394).
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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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General Information
a manufacturer of cigarettes and other tobacco products
Industry Tobacco
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