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Bear of the Day: Pfizer (PFE)

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New York-based Pfizer (PFE - Free Report) markets a wide range of drugs and vaccines. Analysts have taken a bearish stance on the company’s outlook, pushing the stock into an unfavorable Zacks Rank #5 (Strong Sell).

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Image Source: Zacks Investment Research

In addition, the company is part of the Zacks Large Cap Pharmaceutical industry, currently ranked in the bottom 30% of all Zacks industries. Let’s take a closer look at how the company currently stacks up.

Pfizer

Down more than 43% on a two-year basis, it’s been anything but fun for PFE shares following their melt-up during 2021. Still, buyers have stepped up in a big way lately, with shares up more than 13% since their 2023 low in mid-December.

While the recent price action is undoubtedly inspiring, it’ll likely be worthwhile to wait to see if positive earnings estimate revisions start trickling in to confirm the recent positivity.

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Image Source: Zacks Investment Research

The company’s annual dividend yield has seen a big boost amid the adverse price action, with shares now yielding a sizable 5.6% annually. It’s also worth noting that the company has shown a nice commitment to its shareholders, carrying a 3% five-year annualized dividend growth rate.

Zacks Investment Research
Image Source: Zacks Investment Research

Pfizer has posted mixed quarterly results as of late, falling short of consensus revenue expectations in back-to-back releases. As shown below, the company’s top line growth has stalled amid weakening vaccine sales post-pandemic.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Negative earnings estimate revisions from analysts and weakening sales paint a challenging picture for the company’s shares in the near term.

Pfizer (PFE - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.

For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.


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