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Why Pfizer (PFE) Dipped More Than Broader Market Today

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In the latest market close, Pfizer (PFE - Free Report) reached $25.77, with a -0.46% movement compared to the previous day. This change lagged the S&P 500's 0.09% loss on the day. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.1%.

The the stock of drugmaker has risen by 3.81% in the past month, leading the Medical sector's loss of 2.1% and the S&P 500's loss of 0.29%.

Analysts and investors alike will be keeping a close eye on the performance of Pfizer in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.51, marking a 410% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $17.47 billion, up 22.62% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.95 per share and a revenue of $63.34 billion, signifying shifts of +60.33% and +8.27%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Pfizer. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.11% higher. Right now, Pfizer possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Pfizer has a Forward P/E ratio of 8.78 right now. This denotes a discount relative to the industry's average Forward P/E of 13.83.

One should further note that PFE currently holds a PEG ratio of 0.64. 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 1.44 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 154, finds itself in the bottom 39% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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