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

Zacks Equity Research

In the latest trading session, Pfizer (PFE) closed at $35.92, marking a -0.83% move from the previous day. This change lagged the S&P 500's 0.51% gain on the day. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.75%.

Prior to today's trading, shares of the drugmaker had gained 2.52% over the past month. This has outpaced the Medical sector's loss of 0.42% and lagged the S&P 500's gain of 3.44% in that time.

Wall Street will be looking for positivity from PFE as it approaches its next earnings report date. This is expected to be October 29, 2019. On that day, PFE is projected to report earnings of $0.77 per share, which would represent a year-over-year decline of 1.28%. Our most recent consensus estimate is calling for quarterly revenue of $12.22 billion, down 8.07% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.81 per share and revenue of $50.98 billion, which would represent changes of -6.33% and -4.97%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for PFE. Recent revisions tend to reflect the latest 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.42% higher. PFE is currently sporting a Zacks Rank of #4 (Sell).

In terms of valuation, PFE is currently trading at a Forward P/E ratio of 12.88. This represents a discount compared to its industry's average Forward P/E of 14.47.

Meanwhile, PFE's PEG ratio is currently 2.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently 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 101, which puts it in the top 40% 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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