Pfizer (PFE) Beats Market Returns: Some Facts to Consider

At the last close, Pfizer (PFE) reached $29.10, up +0.62% from the previous day. The stock outperformed the S&P 500, which posted a daily gain of 0.28%. At the same time, the Dow Jones gained 0.53% and the tech-heavy Nasdaq gained 0.4%.

Heading into today, shares of the drugmaker had gained 5.05% over the past month, outpacing the Medical sector’s gain of 0.79% and the S&P 500’s gain of 3.78% in that time.

Market participants will be closely watching Pfizer’s financial results when it next releases its results. The company is scheduled to announce its results on July 30, 2024. The company is expected to report EPS of $0.45, which will represent a decline of 32.84% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.21 billion, up 3.72% from the prior-year period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.39 per share and revenue of $60.72 billion, which would represent changes of +29.89% and +3.8%, respectively, from the prior year.

It is also important for investors to be aware of any recent changes to analyst estimates for Pfizer. Recent revisions tend to reflect the evolving nature of near-term business trends. As a result, positive estimate revisions reflect analyst confidence in the company’s business performance and earnings potential.

Based on our research, we believe these estimate revisions are directly related to stock moves near the team. To take advantage of 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. Over the past 30 days, the Zacks Consensus EPS estimate has moved 0.55% higher. Pfizer is currently a Zacks Rank #2 (Buy).

In terms of valuation, Pfizer is currently trading at a forward P/E of 12.11. For comparison, the average forward P/E of its sector is 15.05, meaning that Pfizer is trading at a discount to the group.

It is also important to note that PFE is currently trading at a PEG ratio of 1.13. The PEG ratio is similar to the commonly used price-to-earnings ratio, but this metric also incorporates the company’s expected earnings growth rate. As of yesterday’s market close, the large-cap Pharmaceuticals sector had an average PEG ratio of 1.9.

The large-cap Pharmaceuticals sector is part of the Medical sector. Currently, this sector holds a Zacks Rank of 167, which puts it in the bottom 34% of all 250+ sectors.

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.

Be sure to use Zacks.com to follow these and other stock-moving indicators in the coming trading sessions.

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