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Pfizer (PFE) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Pfizer (PFE - Free Report) closed at $39.41, marking a -0.2% move from the previous day. This move lagged the S&P 500's daily gain of 0.7%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq gained 1.04%.

Heading into today, shares of the drugmaker had gained 2.46% over the past month, outpacing the Medical sector's gain of 2.27% and lagging the S&P 500's gain of 4.38% in that time.

Investors will be hoping for strength from PFE as it approaches its next earnings release, which is expected to be January 28, 2020. In that report, analysts expect PFE to post earnings of $0.57 per share. This would mark a year-over-year decline of 10.94%. Our most recent consensus estimate is calling for quarterly revenue of $12.70 billion, down 9.12% from the year-ago period.

Investors should also note any recent changes to analyst estimates for PFE. 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.

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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. PFE is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, PFE is holding a Forward P/E ratio of 15.27. For comparison, its industry has an average Forward P/E of 15.73, which means PFE is trading at a discount to the group.

Investors should also note that PFE has a PEG ratio of 4.18 right now. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 1.95 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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