Why Philip Morris Stock Might Be a Good Play for 2022

Should you take bets on Philip Morris stock this year?

Jan 11, 2022 at 3:38 PM
facebook twitter linkedin

Philip Morris International Inc. (NYSE:PM) is primarily a multinational tobacco company, with products sold in over 180 countries. PM is engaged in the manufacture and sale of cigarettes, as well as smoke-free products, associated electronic devices and accessories, and other nicotine-containing products in markets outside the U.S. Philip Morris’ brand portfolio is led by Marlboro, the world’s best-selling international cigarette. At last check, PM was trading down 0.2% at $100.05.

Philip Morris stock has increased about 22% year-over-year and PM is up 28% since dropping to its February bottom of $78.34. Additionally, shares of PM are currently down just 6% from a three-year high of $106.51.

Moreover, the tobacco company offers a forward dividend of $5.00 with a very high dividend yield of 5.04%. However, Philip Morris stock doesn’t provide the most appealing valuation with a price-earnings ratio of 17.47 and a sky-high price-sales ratio of 4.57. PM also lacks a sense of security with a balance sheet that holds $29.11 billion in total debt and just $4.49 billion in cash. 

Options traders are extremely call heavy toward the equity. PM's 50-day call/put volume ratio of 6.74 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 95% of readings from the last year. This means calls have been getting picked up at a faster-than-usual clip of late.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners