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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 $40.19, marking a -0.37% move from the previous day. This change lagged the S&P 500's daily gain of 0.03%. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.14%.

Prior to today's trading, shares of the drugmaker had gained 2.67% over the past month. This has outpaced the Medical sector's gain of 0.81% and lagged the S&P 500's gain of 3.23% in that time.

PFE will be looking to display strength as it nears its next earnings release, which is expected to be January 28, 2020. The company is expected to report EPS of $0.57, down 10.94% 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.

Investors should also note any 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 1.29% higher. PFE is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, PFE is currently trading at a Forward P/E ratio of 15.4. This valuation marks a discount compared to its industry's average Forward P/E of 16.11.

We can also see that PFE currently has a PEG ratio of 4.22. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.97 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 52, putting it in the top 21% 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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