Pfizer (PFE – Free Report) closed the most recent trading day at $26.91, moving -0.83% from the previous trading session. This change lagged the S&P 500’s 0.16% gain on the day. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.06%.
Prior to today’s trading, shares of the drugmaker had gained 6.1% over the past month. This has outpaced the Medical sector’s loss of 5.77% and the S&P 500’s loss of 2.8% in that time.
Market participants will be closely following the financial results of Pfizer in its upcoming release. On that day, Pfizer is projected to report earnings of $0.48 per share, which would represent year-over-year growth of 380%. Meanwhile, our latest consensus estimate is calling for revenue of $17.48 billion, up 22.67% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Pfizer. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.17% upward. Pfizer is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Pfizer’s current valuation metrics, including its Forward P/E ratio of 9.26. For comparison, its industry has an average Forward P/E of 12.67, which means Pfizer is trading at a discount to the group.
One should further note that PFE currently holds a PEG ratio of 0.65. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. As the market closed yesterday, the Large Cap Pharmaceuticals industry was having an average PEG ratio of 1.28.
The Large Cap Pharmaceuticals industry is part of the Medical sector. With its current Zacks Industry Rank of 193, this industry ranks in the bottom 24% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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