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Why Pfizer (PFE) Outpaced the Stock Market Today

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In the latest trading session, Pfizer (PFE - Free Report) closed at $24.83, marking a +1.04% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.85%. Elsewhere, the Dow saw an upswing of 1.36%, while the tech-heavy Nasdaq appreciated by 0.72%.

Shares of the drugmaker have depreciated by 2.35% over the course of the past month, underperforming the Medical sector's gain of 6.01%, and the S&P 500's gain of 2.38%.

Market participants will be closely following the financial results of Pfizer in its upcoming release. In that report, analysts expect Pfizer to post earnings of $0.79 per share. This would mark a year-over-year decline of 25.47%. Simultaneously, our latest consensus estimate expects the revenue to be $17.18 billion, showing a 2.95% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.13 per share and revenue of $63.81 billion, indicating changes of +0.64% and +0.29%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Pfizer. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% higher. As of now, Pfizer holds a Zacks Rank of #3 (Hold).

In terms of valuation, Pfizer is currently trading at a Forward P/E ratio of 7.86. This valuation marks a discount compared to its industry average Forward P/E of 14.14.

One should further note that PFE currently holds a PEG ratio of 0.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. PFE's industry had an average PEG ratio of 1.57 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 159, finds itself in the bottom 36% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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