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Pfizer (PFE) Gains As Market Dips: What You Should Know

Zacks Equity Research

Pfizer (PFE) closed the most recent trading day at $42.86, moving +0.25% from the previous trading session. This change outpaced the S&P 500's 0.34% loss on the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 0.43%.

Prior to today's trading, shares of the drugmaker had lost 0.3% over the past month. This has lagged the Medical sector's gain of 0.2% and the S&P 500's gain of 4.46% in that time.

Investors will be hoping for strength from PFE as it approaches its next earnings release, which is expected to be July 30, 2019. The company is expected to report EPS of $0.77, down 4.94% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.42 billion, down 0.31% from the prior-year quarter.

PFE's full-year Zacks Consensus Estimates are calling for earnings of $2.88 per share and revenue of $52.86 billion. These results would represent year-over-year changes of -4% and -1.46%, respectively.

Investors might also notice recent changes to analyst estimates for PFE. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.29% lower. PFE is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, PFE is currently trading at a Forward P/E ratio of 14.84. This represents a premium compared to its industry's average Forward P/E of 14.45.

Also, we should mention that PFE has a PEG ratio of 2.48. 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 was holding an average PEG ratio of 2.09 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 28, which puts it in the top 11% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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