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Pfizer (PFE) Gains But Lags Market: What You Should Know

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Pfizer (PFE - Free Report) closed at $43.65 in the latest trading session, marking a +1.84% move from the prior day. The stock lagged the S&P 500's daily gain of 2.65%. At the same time, the Dow added 1.86%, and the tech-heavy Nasdaq gained 0.24%.

Heading into today, shares of the drugmaker had lost 6.89% over the past month, lagging the Medical sector's loss of 4.78% and outpacing the S&P 500's loss of 8.99% in that time.

Pfizer will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2022. The company is expected to report EPS of $1.54, up 14.93% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $21.04 billion, down 12.69% from the year-ago period.

PFE's full-year Zacks Consensus Estimates are calling for earnings of $6.42 per share and revenue of $99.27 billion. These results would represent year-over-year changes of +45.25% and +21.81%, respectively.

It is also important to note the recent changes to analyst estimates for Pfizer. These recent revisions tend to reflect the evolving nature of short-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. 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. The Zacks Consensus EPS estimate has moved 1.73% lower within the past month. Pfizer is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Pfizer has a Forward P/E ratio of 6.67 right now. This represents a discount compared to its industry's average Forward P/E of 12.54.

Meanwhile, PFE's PEG ratio is currently 0.53. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.73 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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