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

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Pfizer (PFE - Free Report) closed the most recent trading day at $34.08, moving -0.2% from the previous trading session. This change lagged the S&P 500's daily gain of 0.12%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 0.29%.

Heading into today, shares of the drugmaker had lost 3.5% over the past month, lagging the Medical sector's loss of 0.98% and the S&P 500's gain of 0.09% in that time.

Investors will be hoping for strength from Pfizer as it approaches its next earnings release. The company is expected to report EPS of $0.63, down 64.61% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.98 billion, down 33.82% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.33 per share and revenue of $66.47 billion. These totals would mark changes of -49.39% and -33.75%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Pfizer. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 0.18% higher. Pfizer currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Pfizer currently has a Forward P/E ratio of 10.26. Its industry sports an average Forward P/E of 14.55, so we one might conclude that Pfizer is trading at a discount comparatively.

Also, we should mention that PFE has a PEG ratio of 1.14. 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 1.63 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 163, which puts it in the bottom 36% 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.

To follow PFE in the coming trading sessions, be sure to utilize Zacks.com.


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