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Pfizer (PFE) Stock Sinks As Market Gains: What You Should Know
Pfizer (PFE - Free Report) closed the most recent trading day at $40.22, moving -0.42% from the previous trading session. This move lagged the S&P 500's daily gain of 0.17%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq gained 0.67%.
Heading into today, shares of the drugmaker had lost 3.26% over the past month, lagging the Medical sector's gain of 0.23% and the S&P 500's gain of 0.25% in that time.
Wall Street will be looking for positivity from Pfizer as it approaches its next earnings report date. The company is expected to report EPS of $1, down 38.27% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.59 billion, down 31.45% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.49 per share and revenue of $68.82 billion. These totals would mark changes of -46.96% and -31.41%, respectively, from last year.
Any recent changes to analyst estimates for Pfizer should also be noted by investors. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.99% lower within the past month. Pfizer is currently a Zacks Rank #5 (Strong Sell).
Investors should also note Pfizer's current valuation metrics, including its Forward P/E ratio of 11.58. Its industry sports an average Forward P/E of 14.02, so we one might conclude that Pfizer is trading at a discount comparatively.
Also, we should mention that PFE has a PEG ratio of 1.29. 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 1.62 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 97, putting it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.