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Pfizer (PFE) Gains But Lags Market: What You Should Know

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Pfizer (PFE - Free Report) closed the most recent trading day at $44.90, moving +1.88% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.3%. Meanwhile, the Dow gained 2.5%, and the Nasdaq, a tech-heavy index, added 2.95%.

Coming into today, shares of the drugmaker had gained 2.75% in the past month. In that same time, the Medical sector gained 3.55%, while the S&P 500 gained 1.21%.

Investors will be hoping for strength from PFE as it approaches its next earnings release, which is expected to be January 29, 2019. In that report, analysts expect PFE to post earnings of $0.64 per share. This would mark year-over-year growth of 3.23%. Our most recent consensus estimate is calling for quarterly revenue of $13.73 billion, up 0.18% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3 per share and revenue of $53.40 billion, which would represent changes of +13.21% and +1.62%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for PFE. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.43% higher. PFE is currently a Zacks Rank #3 (Hold).

Digging into valuation, PFE currently has a Forward P/E ratio of 14.7. Its industry sports an average Forward P/E of 14.58, so we one might conclude that PFE is trading at a premium comparatively.

Meanwhile, PFE's PEG ratio is currently 2.2. 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 industry currently has a Zacks Industry Rank of 78, which puts it in the top 30% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.




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