2024-04-15 14:54:50 ET
Summary
- The rise of the US Dollar Index could pose challenges for multinational companies, including Philip Morris International, but that is likely a short-lived earnings risk.
- PM reported an EPS miss in January, but its management and sell-side analysts expect solid EPS growth this year and next.
- PM's valuation appears favorable, with a high dividend yield and undervalued share price - I outline key price levels to monitor ahead of Q1 results due out next week.
The US Dollar Index rose above the 106 level last week, sparked by geopolitical fears, but also robust economic data at home. This could prove problematic for multinational companies over the coming months. For now, the first quarter reporting season is in full swing, and analysts expect solid EPS growth, assuming the usual aggregate beat on the bottom line by S&P 500 firms. Even slow-growth companies in the Consumer Staples space could benefit from rebounding corporate profits....
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Philip Morris: FX A Transitory Risk, Solid Earnings Support The Big Yield