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

Zacks Equity Research
Signature Bank (SBNY) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Pfizer (PFE) closed at $39.38 in the latest trading session, marking a -1.25% move from the prior day. This change lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.42%, while the tech-heavy Nasdaq added 0.03%.

Heading into today, shares of the drugmaker had lost 5.43% over the past month, outpacing the Medical sector's loss of 8.18% and lagging the S&P 500's gain of 2.89% in that time.

PFE will be looking to display strength as it nears its next earnings release, which is expected to be April 30, 2019. 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.

PFE's full-year Zacks Consensus Estimates are calling for earnings of $2.86 per share and revenue of $52.90 billion. These results would represent year-over-year changes of -4.67% and -1.38%, respectively.

Investors might also notice recent changes to analyst estimates for PFE. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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 0.06% lower. PFE is currently a Zacks Rank #3 (Hold).

In terms of valuation, PFE is currently trading at a Forward P/E ratio of 13.94. This valuation marks a discount compared to its industry's average Forward P/E of 14.43.

We can also see that PFE currently has a PEG ratio of 2.4. 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 industry currently had an average PEG ratio of 2.08 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 81, which puts it in the top 32% 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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