Pfizer (PFE – Free Report) closed the most recent trading day at $26.21, moving -0.38% from the previous trading session. This move lagged the S&P 500’s daily gain of 1.08%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.41%.
The the stock of drugmaker has risen by 2.93% in the past month, leading the Medical sector’s gain of 0.21% and the S&P 500’s loss of 8.26%.
The investment community will be closely monitoring the performance of Pfizer in its forthcoming earnings report. On that day, Pfizer is projected to report earnings of $0.67 per share, which would represent a year-over-year decline of 18.29%. Simultaneously, our latest consensus estimate expects the revenue to be $13.99 billion, showing a 5.97% drop compared to the year-ago quarter.
PFE’s full-year Zacks Consensus Estimates are calling for earnings of $2.97 per share and revenue of $63.2 billion. These results would represent year-over-year changes of -4.5% and -0.67%, respectively.
Investors should also note any recent changes to analyst estimates for Pfizer. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.51% higher within the past month. Pfizer presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Pfizer is presently trading at a Forward P/E ratio of 8.87. This valuation marks a discount compared to its industry’s average Forward P/E of 14.82.
It’s also important to note that PFE currently trades at a PEG ratio of 0.64. 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. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.32.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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