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

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In the latest trading session, Pfizer (PFE - Free Report) closed at $40.90, marking a -1.09% move from the previous day. This move lagged the S&P 500's daily loss of 0.58%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 1.54%.

Coming into today, shares of the drugmaker had gained 0.58% in the past month. In that same time, the Medical sector gained 0.22%, while the S&P 500 gained 2%.

Wall Street will be looking for positivity from Pfizer as it approaches its next earnings report date. In that report, analysts expect Pfizer to post earnings of $1 per share. This would mark a year-over-year decline of 38.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.59 billion, down 31.45% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.49 per share and revenue of $68.82 billion. These totals would mark changes of -46.96% and -31.41%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Pfizer. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.99% lower. Pfizer is currently a Zacks Rank #4 (Sell).

Digging into valuation, Pfizer currently has a Forward P/E ratio of 11.85. This represents a discount compared to its industry's average Forward P/E of 14.39.

It is also worth noting that PFE currently has a PEG ratio of 1.32. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% 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.

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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