In the latest trading session, Pfizer (PFE) closed at $44.07, marking a +0.27% move from the previous day. This move outpaced the S&P 500’s daily of 0%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.06%.
Prior to today’s trading, shares of the drugmaker had gained 5.78% over the past month. This has outpaced the Medical sector’s gain of 2.32% and the S&P 500’s gain of 0.78% in that time.
PFE will be looking to display strength as it nears its next earnings release, which is expected to be October 30, 2018. The company is expected to report EPS of $0.75, up 11.94% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $13.51 billion, up 2.63% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.99 per share and revenue of $54.07 billion, which would represent changes of +12.83% and +2.9%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for PFE. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 remained stagnant within the past month. PFE is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, PFE is currently trading at a Forward P/E ratio of 14.68. For comparison, its industry has an average Forward P/E of 16.62, which means PFE is trading at a discount to the group.
Meanwhile, PFE’s PEG ratio is currently 2.22. 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 2.05 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 32, which puts it in the top 13% 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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