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Pfizer (PFE) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

Pfizer (PFE) closed the most recent trading day at $36.23, moving -1.25% from the previous trading session. This change lagged the S&P 500's daily loss of 0.01%. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, lost 0.06%.

Coming into today, shares of the drugmaker had gained 4.59% in the past month. In that same time, the Medical sector gained 1.37%, while the S&P 500 gained 3.23%.

PFE will be looking to display strength as it nears its next earnings release, which is expected to be October 29, 2019. The company is expected to report EPS of $0.63, down 19.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.22 billion, down 8.07% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.81 per share and revenue of $50.98 billion, which would represent changes of -6.33% and -4.97%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PFE. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.3% higher within the past month. PFE is currently a Zacks Rank #4 (Sell).

Valuation is also important, so investors should note that PFE has a Forward P/E ratio of 13.05 right now. Its industry sports an average Forward P/E of 14.33, so we one might conclude that PFE is trading at a discount comparatively.

Meanwhile, PFE's PEG ratio is currently 2.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.05 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 43, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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