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

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Pfizer (PFE - Free Report) closed the most recent trading day at $50.94, moving -1.22% from the previous trading session. This change lagged the S&P 500's daily gain of 0.81%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 0.37%.

Prior to today's trading, shares of the drugmaker had gained 6% over the past month. This has lagged the Medical sector's gain of 6.56% and outpaced the S&P 500's gain of 5.64% in that time.

Wall Street will be looking for positivity from Pfizer as it approaches its next earnings report date. This is expected to be May 3, 2022. In that report, analysts expect Pfizer to post earnings of $1.80 per share. This would mark year-over-year growth of 93.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.72 billion, up 96.99% from the year-ago period.

PFE's full-year Zacks Consensus Estimates are calling for earnings of $7.20 per share and revenue of $115.85 billion. These results would represent year-over-year changes of +62.9% and +42.17%, respectively.

Any recent changes to analyst estimates for Pfizer should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.

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. Within the past 30 days, our consensus EPS projection has moved 3.28% higher. Pfizer is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Pfizer is currently trading at a Forward P/E ratio of 7.16. Its industry sports an average Forward P/E of 13, so we one might conclude that Pfizer is trading at a discount comparatively.

Meanwhile, PFE's PEG ratio is currently 0.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.37 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 38% 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.

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