Pfizer (PFE) Dips More Than Broader Markets: What You Should Know
Pfizer (PFE) closed the most recent trading day at $53.54, moving -1.05% from the previous trading session. This move lagged the S&P 500's daily loss of 0.97%. At the same time, the Dow lost 0.96%, and the tech-heavy Nasdaq gained 0.23%.
Prior to today's trading, shares of the drugmaker had lost 8.21% over the past month. This has lagged the Medical sector's loss of 7.42% and the S&P 500's loss of 0.78% in that time.
Pfizer will be looking to display strength as it nears its next earnings release, which is expected to be February 8, 2022. In that report, analysts expect Pfizer to post earnings of $0.84 per share. This would mark year-over-year growth of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.89 billion, up 104.43% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Pfizer. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 3.03% higher. Pfizer is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, Pfizer is currently trading at a Forward P/E ratio of 9.33. Its industry sports an average Forward P/E of 13.15, so we one might conclude that Pfizer is trading at a discount comparatively.
Investors should also note that PFE has a PEG ratio of 0.75 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. PFE's industry had an average PEG ratio of 2 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 209, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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