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Pfizer (PFE) Dips More Than Broader Markets: What You Should Know

Pfizer (PFE) closed the most recent trading day at $36.02, moving -1.67% from the previous trading session. This change lagged the S&P 500's 1.16% loss on the day. Elsewhere, the Dow lost 1.84%, while the tech-heavy Nasdaq lost 0.13%.

Prior to today's trading, shares of the drugmaker had lost 5.4% over the past month. This has lagged the Medical sector's loss of 0.29% and the S&P 500's loss of 1.96% in that time.

Wall Street will be looking for positivity from PFE as it approaches its next earnings report date. In that report, analysts expect PFE to post earnings of $0.72 per share. This would mark a year-over-year decline of 4%. Meanwhile, our latest consensus estimate is calling for revenue of $12.27 billion, down 3.23% from the prior-year quarter.

PFE's full-year Zacks Consensus Estimates are calling for earnings of $2.87 per share and revenue of $49.19 billion. These results would represent year-over-year changes of -2.71% and -4.95%, respectively.

Any recent changes to analyst estimates for PFE should also be noted by investors. 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. 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 remained stagnant. PFE is currently a Zacks Rank #3 (Hold).

Looking at its valuation, PFE is holding a Forward P/E ratio of 12.74. For comparison, its industry has an average Forward P/E of 15.09, which means PFE is trading at a discount to the group.

Also, we should mention that PFE has a PEG ratio of 2.97. 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. PFE's industry had an average PEG ratio of 2.09 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 32% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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