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

Zacks Equity Research

Pfizer (PFE) closed at $38.87 in the latest trading session, marking a -0.15% move from the prior day. This change lagged the S&P 500's 0.35% gain on the day. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.56%.

Coming into today, shares of the drugmaker had gained 2.37% in the past month. In that same time, the Medical sector gained 3.32%, while the S&P 500 gained 4.69%.

PFE will be looking to display strength as it nears its next earnings release, which is expected to be January 28, 2020. On that day, PFE is projected to report earnings of $0.57 per share, which would represent a year-over-year decline of 10.94%. Our most recent consensus estimate is calling for quarterly revenue of $12.70 billion, down 9.12% 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PFE is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, PFE is holding a Forward P/E ratio of 15.05. This represents a discount compared to its industry's average Forward P/E of 15.47.

Also, we should mention that PFE has a PEG ratio of 3.96. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.1 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% 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.

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


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