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

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Pfizer (PFE) closed the most recent trading day at $47.92, moving +0.02% from the previous trading session. This change outpaced the S&P 500's 0.38% loss on the day. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.46%.

Coming into today, shares of the drugmaker had lost 5.45% in the past month. In that same time, the Medical sector lost 2.15%, while the S&P 500 lost 6.69%.

Investors will be hoping for strength from Pfizer as it approaches its next earnings release. The company is expected to report EPS of $1.87, up 74.77% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $29.31 billion, up 54.45% from the year-ago period.

PFE's full-year Zacks Consensus Estimates are calling for earnings of $6.69 per share and revenue of $106.14 billion. These results would represent year-over-year changes of +51.36% and +30.25%, respectively.

Investors should also note any recent changes to analyst estimates for Pfizer. 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.

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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.79% higher. Pfizer currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Pfizer is holding a Forward P/E ratio of 7.16. For comparison, its industry has an average Forward P/E of 12.73, which means Pfizer is trading at a discount to the group.

We can also see that PFE currently has a PEG ratio of 0.57. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.12 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 180, which puts it in the bottom 29% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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