Pfizer (PFE) Gains But Lags Market: What You Should Know
Pfizer (PFE) closed the most recent trading day at $36.50, moving +0.69% from the previous trading session. This move lagged the S&P 500's daily gain of 0.84%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 2.51%.
Heading into today, shares of the drugmaker had gained 9.06% over the past month, outpacing the Medical sector's gain of 4.71% and the S&P 500's gain of 3.73% in that time.
PFE will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2020. The company is expected to report EPS of $0.64, down 20% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.94 billion, down 10.01% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.88 per share and revenue of $48.85 billion. These totals would mark changes of -2.37% and -5.61%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for PFE. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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. Within the past 30 days, our consensus EPS projection remained stagnant. PFE is currently a Zacks Rank #3 (Hold).
Investors should also note PFE's current valuation metrics, including its Forward P/E ratio of 12.59. For comparison, its industry has an average Forward P/E of 15.85, which means PFE is trading at a discount to the group.
Investors should also note that PFE has a PEG ratio of 2.83 right now. 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. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2.21 at yesterday's closing price.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% 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.
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