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

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Pfizer (PFE - Free Report) closed at $53.07 in the latest trading session, marking a +0.72% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.69%. At the same time, the Dow added 0.78%, and the tech-heavy Nasdaq gained 0.28%.

Heading into today, shares of the drugmaker had lost 6.99% over the past month, outpacing the Medical sector's loss of 8.58% and lagging the S&P 500's loss of 5.29% in that time.

Pfizer will be looking to display strength as it nears its next earnings release, which is expected to be February 8, 2022. The company is expected to report EPS of $0.85, up 102.38% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $23.93 billion, up 104.79% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Pfizer. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 18.26% higher. Pfizer is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that Pfizer has a Forward P/E ratio of 8.23 right now. This represents a discount compared to its industry's average Forward P/E of 12.93.

Meanwhile, PFE's PEG ratio is currently 0.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PFE's industry had an average PEG ratio of 2.01 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 37% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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