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Pfizer (PFE) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Pfizer (PFE) closed at $37.37 in the latest trading session, marking a +1.47% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.04%.

Heading into today, shares of the drugmaker had gained 4.04% over the past month, outpacing the Medical sector's loss of 1.69% and the S&P 500's gain of 2.25% in that time.

Wall Street will be looking for positivity from PFE as it approaches its next earnings report date. The company is expected to report EPS of $0.62, down 20.51% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $12.22 billion, down 8.07% from the year-ago period.

PFE's full-year Zacks Consensus Estimates are calling for earnings of $2.81 per share and revenue of $50.98 billion. These results would represent year-over-year changes of -6.33% and -4.97%, 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 0.3% higher. PFE is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that PFE has a Forward P/E ratio of 13.11 right now. This represents a discount compared to its industry's average Forward P/E of 13.9.

It is also worth noting that PFE currently has a PEG ratio of 2.93. 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 2.02 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 30, putting it in the top 12% 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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