In the latest trading session, Pfizer (PFE – Free Report) closed at $42.97, marking a +0.34% move from the previous day. This change outpaced the S&P 500’s 0.03% gain on the day. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the drugmaker had gained 3.45% in the past month. In that same time, the Medical sector gained 4.33%, while the S&P 500 gained 3.1%.
Investors will be hoping for strength from PFE as it approaches 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. Our most recent consensus estimate is calling for quarterly revenue of $13.51 billion, up 2.63% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.99 per share and revenue of $54.25 billion, which would represent changes of +12.83% and +3.23%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for PFE. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PFE is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, PFE currently has a Forward P/E ratio of 14.33. Its industry sports an average Forward P/E of 16.55, so we one might conclude that PFE is trading at a discount comparatively.
Investors should also note that PFE has a PEG ratio of 2.06 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. PFE’s industry had an average PEG ratio of 1.98 as of yesterday’s close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% 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.