Morgan Stanley named PM one of its top picks for high dividend-paying industries
Philip Morris International Inc. (NYSE:PM) and General Electric Co (NYSE:GE) are attracting attention today. The former revealed plans to shift away from cigarettes during its investor day, as it unveiled a zero-tobacco stick to be used with its IQOS device. The security was also named as one of Morgan Stanley's top picks for high dividend-paying industries.
Philip Morris stock is staging an impressive bounce off the $90 level, which also served as a floor in March, May, and June. The shares are still below most moving averages, however, despite gaining 3.2% to trade at $93.25 at last check. In 2023, PM has already shed 8.1%.
Options bulls are blasting PM after the news, with 9,197 calls across the tape so far today, which is triple the intraday average volume. Most popular by far is the January 2025 105-strike call.
Meanwhile, Deutsche Bank initiated coverage on General Electric stock with a "buy" rating and $41 price target, which implies 27.2% upside to yesterday's close. A floor at the $109 region has been swooping in to contain pullbacks since the security's July 25, six-year high of $117.95. GE added 123.2% over the last 12 months, and was last seen up 1.2% at $112.21.
When speculating on GE's next moves, options look like a solid choice. This is per the stock's Schaeffer's Volatility Index (SVI) of 27%, which sits in the low 28th percentile of its annual range, meaning options traders are now pricing in low volatility expectations.