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Pfizer (PFE) Stock Drops Despite Market Gains: Important Facts to Note

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Pfizer (PFE - Free Report) closed the latest trading day at $29.18, indicating a -0.07% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.97% for the day. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.45%.

Shares of the drugmaker witnessed a loss of 0.71% over the previous month, beating the performance of the Medical sector with its loss of 3.72% and underperforming the S&P 500's gain of 5.41%.

The investment community will be paying close attention to the earnings performance of Pfizer in its upcoming release. The company is slated to reveal its earnings on October 29, 2024. The company is expected to report EPS of $0.63, up 470.59% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $15.44 billion, indicating a 16.68% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.62 per share and revenue of $61.42 billion, which would represent changes of +42.39% and +5%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Pfizer. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% lower. Pfizer is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Pfizer currently has a Forward P/E ratio of 11.14. This valuation marks a discount compared to its industry's average Forward P/E of 15.57.

One should further note that PFE currently holds a PEG ratio of 1.28. 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 had an average PEG ratio of 1.62 as trading concluded yesterday.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 47, finds itself in the top 19% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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