We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Pfizer (PFE) Right Now?
Read MoreHide Full Article
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Pfizer (PFE - Free Report) is a stock many investors are watching right now. PFE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.30 right now. For comparison, its industry sports an average P/E of 14.36. Over the past year, PFE's Forward P/E has been as high as 14.02 and as low as 10.19, with a median of 11.62.
Another valuation metric that we should highlight is PFE's P/B ratio of 3.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. PFE's current P/B looks attractive when compared to its industry's average P/B of 5.64. Within the past 52 weeks, PFE's P/B has been as high as 4.01 and as low as 2.91, with a median of 3.19.
Finally, our model also underscores that PFE has a P/CF ratio of 12.98. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PFE's current P/CF looks attractive when compared to its industry's average P/CF of 19.28. Over the past 52 weeks, PFE's P/CF has been as high as 17.35 and as low as 12.30, with a median of 14.08.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Pfizer is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PFE feels like a great value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Pfizer (PFE) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Pfizer (PFE - Free Report) is a stock many investors are watching right now. PFE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.30 right now. For comparison, its industry sports an average P/E of 14.36. Over the past year, PFE's Forward P/E has been as high as 14.02 and as low as 10.19, with a median of 11.62.
Another valuation metric that we should highlight is PFE's P/B ratio of 3.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. PFE's current P/B looks attractive when compared to its industry's average P/B of 5.64. Within the past 52 weeks, PFE's P/B has been as high as 4.01 and as low as 2.91, with a median of 3.19.
Finally, our model also underscores that PFE has a P/CF ratio of 12.98. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. PFE's current P/CF looks attractive when compared to its industry's average P/CF of 19.28. Over the past 52 weeks, PFE's P/CF has been as high as 17.35 and as low as 12.30, with a median of 14.08.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Pfizer is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PFE feels like a great value stock at the moment.