In the latest trading session, Pfizer (PFE - Free Report) closed at $39.16, marking a +0.64% move from the previous day. This change outpaced the S&P 500's 0.3% gain on the day. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, added 0.3%.
Prior to today's trading, shares of the drugmaker had gained 1.62% over the past month. This has lagged the Medical sector's gain of 3.08% and the S&P 500's gain of 2.69% 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 28, 2020. The company is expected to report EPS of $0.63, down 1.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $12.70 billion, down 9.12% from the prior-year quarter.
Any recent changes to analyst estimates for PFE should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PFE is currently sporting a Zacks Rank of #1 (Strong Buy).
Digging into valuation, PFE currently has a Forward P/E ratio of 13.13. Its industry sports an average Forward P/E of 15.63, so we one might conclude that PFE is trading at a discount comparatively.
Investors should also note that PFE has a PEG ratio of 3.45 right now. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2.2 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 24, which puts it in the top 10% 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.