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

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Pfizer (PFE - Free Report) closed the most recent trading day at $39.76, moving +0.38% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.35%.

Heading into today, shares of the drugmaker had lost 1.35% over the past month, lagging the Medical sector's gain of 0.68% and the S&P 500's gain of 3.64% in that time.

PFE will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2021. On that day, PFE is projected to report earnings of $0.96 per share, which would represent year-over-year growth of 23.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.55 billion, up 48.75% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.72 per share and revenue of $74.81 billion, which would represent changes of +67.57% and +57.01%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for PFE. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.74% higher within the past month. PFE currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that PFE has a Forward P/E ratio of 10.66 right now. This represents a discount compared to its industry's average Forward P/E of 14.82.

Investors should also note that PFE has a PEG ratio of 1.4 right now. 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 2.12 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 172, which puts it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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