In the latest trading session, Pfizer (PFE) closed at $35.82, marking a -0.83% move from the previous day. This change lagged the S&P 500's 1.08% gain on the day. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.31%.
Heading into today, shares of the drugmaker had lost 2.25% over the past month, lagging the Medical sector's loss of 1.27% and the S&P 500's loss of 0.68% in that time.
PFE will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.62, down 20.51% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.22 billion, down 8.07% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.80 per share and revenue of $50.98 billion. These totals would mark changes of -6.67% and -4.97%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for PFE. 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. Within the past 30 days, our consensus EPS projection remained stagnant. PFE is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, PFE is holding a Forward P/E ratio of 12.9. For comparison, its industry has an average Forward P/E of 14.06, which means PFE is trading at a discount to the group.
Investors should also note that PFE has a PEG ratio of 2.88 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PFE's industry had an average PEG ratio of 2.03 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 30, which puts it in the top 12% 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.
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