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

Zacks Equity Research
·3 min read

Pfizer (PFE) closed the most recent trading day at $37.77, moving +1.72% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.66%. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq lost 1.25%.

Prior to today's trading, shares of the drugmaker had lost 11.02% over the past month. This has lagged the Medical sector's gain of 1.53% and the S&P 500's gain of 3.42% in that time.

PFE will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2021. The company is expected to report EPS of $0.52, down 5.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.88 billion, up 1.49% from the year-ago period.

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 a result, we can interpret positive estimate revisions as a good sign for 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.

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 0.21% higher. PFE is currently a Zacks Rank #3 (Hold).

Investors should also note PFE's current valuation metrics, including its Forward P/E ratio of 11.31. Its industry sports an average Forward P/E of 14.05, so we one might conclude that PFE is trading at a discount comparatively.

Investors should also note that PFE has a PEG ratio of 2.84 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.04 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow PFE in the coming trading sessions, be sure to utilize Zacks.com.


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Zacks Investment Research