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

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Pfizer (PFE - Free Report) closed at $43.23 in the latest trading session, marking a +0.53% move from the prior day. The stock lagged the S&P 500's daily gain of 0.7%. At the same time, the Dow added 0.42%, and the tech-heavy Nasdaq gained 1.26%.

Prior to today's trading, shares of the drugmaker had lost 4.4% over the past month. This has was narrower than the Medical sector's loss of 6.76% and the S&P 500's loss of 6.13% in that time.

Wall Street will be looking for positivity from PFE as it approaches its next earnings report date. This is expected to be January 29, 2019. On that day, PFE is projected to report earnings of $0.64 per share, which would represent year-over-year growth of 3.23%. Meanwhile, our latest consensus estimate is calling for revenue of $13.73 billion, up 0.18% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for PFE. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Within the past 30 days, our consensus EPS projection remained stagnant. PFE currently has a Zacks Rank of #3 (Hold).

Investors should also note PFE's current valuation metrics, including its Forward P/E ratio of 14.03. This valuation marks a discount compared to its industry's average Forward P/E of 14.41.

Investors should also note that PFE has a PEG ratio of 2.1 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.9 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 106, which puts it in the top 42% 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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