Pfizer (PFE) closed at $26.14 in the latest trading session, marking a +2.11% move from the prior day. This move outpaced the S&P 500’s daily gain of 1.75%. Elsewhere, the Dow gained 1.86%, while the tech-heavy Nasdaq added 2.54%.
Heading into today, shares of the drugmaker had lost 1.39% over the past month, lagging the Medical sector’s gain of 3.73% and outpacing the S&P 500’s loss of 1.63%.
Investors will be eagerly watching for the performance of Pfizer in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.68, showcasing a 12.82% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.4 billion, down 1.71% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2.99 per share and a revenue of $61.64 billion, demonstrating changes of -7.14% and -1.5%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Pfizer. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.24% increase. At present, Pfizer boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Pfizer is currently being traded at a Forward P/E ratio of 8.57. For comparison, its industry has an average Forward P/E of 15.3, which means Pfizer is trading at a discount to the group.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 35% 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.
