GET DAILY SIGNALSIs 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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
PM in +3.03% Uptrend, rising for three consecutive days on October 30, 2026
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 233 of 389 cases, the price rose further within the following month. The odds of a continued upward trend are 60%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The Aroon Indicator entered an Uptrend today. In 175 of 328 cases where PM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 53%.
Bearish Trend Analysis
The 10-day RSI Indicator for PM moved out of overbought territory on November 05, 2026. 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 45 similar instances where the indicator moved out of overbought territory. In 21 of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at 47%.
The Momentum Indicator moved below the 0 level on November 05, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PM as a result. In 41 of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 53%.
The Moving Average Convergence Divergence Histogram (MACD) for PM turned negative on November 05, 2026. 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 50 similar instances when the indicator turned negative. In 25 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 50%.
PM moved below its 50-day moving average on November 09, 2026 date and that indicates a change from an upward trend to a 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 50 of 62 cases within the following month. The odds of a continued downward trend are 44%.
PM broke above its upper Bollinger Band on October 29, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 3 (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 6 (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 PE Growth Rating for this company is 14 (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 32 (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 Valuation Rating of 44 (best 1 - 100 worst) indicates that the company is fair valued 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 (-35.934) is slightly lower than the industry average of (-7.297). P/E Ratio (28.431) is within average values for comparable stocks, (12.512). Projected Growth (PEG Ratio) (2.327) is also within normal values, averaging (3.595). Dividend Yield (0.032) settles around the average of (0.060) among similar stocks. PM's P/S Ratio (7.022) is slightly higher than the industry average of (2.780).
The Tickeron Seasonality Score of 50 (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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