Buy Or Sell Philip Morris Stock Ahead Of Its Q2 Earnings?

Core Insights - Philip Morris International is expected to report earnings of $1.86 per share on revenues of $10.33 billion, surpassing last year's earnings of $1.59 per share on sales of $9.47 billion [3] - The company has a market capitalization of $285 billion and generated $38 billion in revenue over the past twelve months, with operating profits of $14 billion and a net income of $7.6 billion [4] Historical Performance - Over the past five years, Philip Morris stock has shown positive one-day returns following earnings reports in 60% of cases, with a median positive return of 3.2% and a maximum return of 10.9% [2][7] - In the last three years, the percentage of positive one-day returns drops slightly to 58% [7] - There have been 20 documented earnings data points in the last five years, with 12 positive and 8 negative one-day returns [7] Return Correlation - The relationship between one-day (1D), five-day (5D), and twenty-one-day (21D) returns can guide trading strategies, with a focus on identifying correlations between short-term and medium-term returns [6][8] - A strategy based on the correlation between 1D and 5D returns can be employed, where a positive 1D return may lead to a long position for the next 5 days [8]