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

Zacks Equity Research
Newpark (NR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

In the latest trading session, Pfizer (PFE) closed at $42.32, marking a +1.22% move from the previous day. This change outpaced the S&P 500's 0.01% loss on the day. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, added 0.12%.

Coming into today, shares of the drugmaker had lost 1.39% in the past month. In that same time, the Medical sector gained 1.11%, while the S&P 500 gained 2.24%.

PFE will be looking to display strength as it nears its next earnings release. On that day, PFE is projected to report earnings of $0.78 per share, which would represent year-over-year growth of 1.3%. Our most recent consensus estimate is calling for quarterly revenue of $12.86 billion, down 0.32% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.86 per share and revenue of $52.90 billion. These totals would mark changes of -4.67% and -1.38%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for PFE. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PFE currently has a Zacks Rank of #4 (Sell).

Digging into valuation, PFE currently has a Forward P/E ratio of 14.6. This valuation marks a discount compared to its industry's average Forward P/E of 15.21.

Also, we should mention that PFE has a PEG ratio of 2.39. 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. PFE's industry had an average PEG ratio of 2.12 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 96, which puts it in the top 38% 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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