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Pfizer (PFE) Stock Sinks As Market Gains: What You Should Know

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Pfizer (PFE - Free Report) closed at $36.96 in the latest trading session, marking a -0.14% move from the prior day. This move lagged the S&P 500's daily gain of 0.52%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.21%.

Prior to today's trading, shares of the drugmaker had lost 3.49% over the past month. This has lagged the Medical sector's of 0% and the S&P 500's gain of 0.49% in that time.

Investors will be hoping for strength from PFE as it approaches its next earnings release. On that day, PFE is projected to report earnings of $0.69 per share, which would represent a year-over-year decline of 8%. Our most recent consensus estimate is calling for quarterly revenue of $12.27 billion, down 3.23% from the year-ago period.

PFE's full-year Zacks Consensus Estimates are calling for earnings of $2.89 per share and revenue of $49.19 billion. These results would represent year-over-year changes of -2.03% and -4.95%, respectively.

Investors should also note any recent changes to analyst estimates for PFE. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PFE is currently a Zacks Rank #3 (Hold).

Digging into valuation, PFE currently has a Forward P/E ratio of 12.8. For comparison, its industry has an average Forward P/E of 14.89, which means PFE is trading at a discount to the group.

Also, we should mention that PFE has a PEG ratio of 2.98. 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 2.06 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 126, putting it in the top 50% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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