Will Philip Morris' Efforts To Expand RRPs Fuel Growth?
Zacks Investment Research | Feb 26, 2018 10:14PM ET
As smoking rate continues to decline globally along with stringent government regulations and increasing consumer health awareness, Philip Morris International Inc. (NYSE:PM) has been facing receding volumes in its combustible products category. Amid such conditions, the company has been striving to achieve growth and stay afloat in the industry by focusing on reduced-risk tobacco products.
Declining Cigarette Consumption Poses Concerns
Philip Morris has been witnessing deteriorating shipment volumes mainly due to receding demand for cigarettes. Moreover, consumers are opting for e-cigarettes or substitutes for cigarettes, which is affecting cigarette volume. During fourth-quarter 2017, total cigarette shipment volume fell 2.1%. We note that anti-tobacco campaigns and rigid government policies have been plaguing cigarette consumption. Government initiatives to curb tobacco consumption mainly include self-critical advertisements, use of precautionary labels on cigarette packets and lowering of nicotine levels in cigarettes.
Moreover, due to such industry headwinds, Philip Morris’ shares have lost 7.7% in the past six months, wider than the .
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp (NYSE:FMC). and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.