April 16, 2024

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

Pfizer (PFE) closed at $44.71 in the latest trading session, marking a +0.29% move from the prior day. This move outpaced the S&P 500’s daily loss of 0.58%.

Prior to today’s trading, shares of the drugmaker had lost 8.85% over the past month. This has lagged the Medical sector’s loss of 0.62% and the S&P 500’s gain of 0.16% in that time.

PFE will be looking to display strength as it nears its next earnings release. In that report, analysts expect PFE to post earnings of $1.07 per share. This would mark year-over-year growth of 48.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.61 billion, up 78.1% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.06 per share and revenue of $79.76 billion, which would represent changes of +82.88% and +67.41%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for PFE. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 0.27% lower. PFE currently has a Zacks Rank of #3 (Hold).

In terms of valuation, PFE is currently trading at a Forward P/E ratio of 10.99. This represents a discount compared to its industry’s average Forward P/E of 13.43.

We can also see that PFE currently has a PEG ratio of 1.57. 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 2.09 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 115, which puts it in the top 46% 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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