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Pfizer (PFE) Gains But Lags Market: What You Should Know

In the latest trading session, Pfizer (PFE) closed at $38.36, marking a +0.89% move from the previous day. This move lagged the S&P 500's daily gain of 1.45%. Elsewhere, the Dow gained 2.12%, while the tech-heavy Nasdaq added 5.41%.

Prior to today's trading, shares of the drugmaker had lost 0.55% over the past month. This has was narrower than the Medical sector's loss of 3.5% and lagged the S&P 500's gain of 1.53% in that time.

Investors will be hoping for strength from Pfizer as it approaches its next earnings release. In that report, analysts expect Pfizer to post earnings of $0.63 per share. This would mark a year-over-year decline of 69.12%. Meanwhile, our latest consensus estimate is calling for revenue of $14.01 billion, down 49.51% from the prior-year quarter.

PFE's full-year Zacks Consensus Estimates are calling for earnings of $3.35 per share and revenue of $68.1 billion. These results would represent year-over-year changes of -49.09% and -32.13%, respectively.

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Investors should also note any recent changes to analyst estimates for Pfizer. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 0.4% lower within the past month. Pfizer is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Pfizer has a Forward P/E ratio of 11.36 right now. Its industry sports an average Forward P/E of 14.56, so we one might conclude that Pfizer is trading at a discount comparatively.

Meanwhile, PFE's PEG ratio is currently 1.26. 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. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.65 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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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Pfizer Inc. (PFE) : Free Stock Analysis Report

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