Pfizer (PFE) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Pfizer (PFE) closed at $40.09, marking a -1.74% move from the previous day. This change lagged the S&P 500's 0.06% loss on the day. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 0.23%.
Prior to today's trading, shares of the drugmaker had gained 9.3% over the past month. This has lagged the Medical sector's gain of 9.55% and the S&P 500's gain of 11.09% in that time.
Wall Street will be looking for positivity from PFE as it approaches its next earnings report date. The company is expected to report EPS of $0.57, up 3.64% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.88 billion, up 1.49% from the year-ago period.
PFE's full-year Zacks Consensus Estimates are calling for earnings of $2.89 per share and revenue of $49 billion. These results would represent year-over-year changes of -2.03% and -5.31%, respectively.
Investors should also note any recent changes to analyst estimates for PFE. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. PFE is currently a Zacks Rank #3 (Hold).
Investors should also note PFE's current valuation metrics, including its Forward P/E ratio of 14.1. For comparison, its industry has an average Forward P/E of 14.36, which means PFE is trading at a discount to the group.
Investors should also note that PFE has a PEG ratio of 3.35 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.22 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 185, which puts it in the bottom 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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