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Pfizer (PFE) Gains As Market Dips: What You Should Know

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Pfizer (PFE - Free Report) closed at $49.07 in the latest trading session, marking a +2% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.13%. Elsewhere, the Dow lost 0.15%, while the tech-heavy Nasdaq added 0.14%.

Coming into today, shares of the drugmaker had lost 9.92% in the past month. In that same time, the Medical sector lost 5.23%, while the S&P 500 lost 3.32%.

Pfizer will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.87, up 74.77% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.31 billion, up 54.45% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $6.69 per share and revenue of $106.14 billion, which would represent changes of +51.36% and +30.25%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Pfizer. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.25% higher within the past month. Pfizer is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Pfizer is holding a Forward P/E ratio of 7.19. Its industry sports an average Forward P/E of 12.63, so we one might conclude that Pfizer is trading at a discount comparatively.

Also, we should mention that PFE has a PEG ratio of 0.58. 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 2.07 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 155, which puts it in the bottom 39% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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