Pfizer (PFE) closed at $32.98 in the latest trading session, marking a +0.89% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.45%.
Heading into today, shares of the drugmaker had lost 10.14% over the past month, lagging the Medical sector's loss of 5.26% and the S&P 500's loss of 1.38% in that time.
Investors will be hoping for strength from Pfizer as it approaches its next earnings release. The company is expected to report EPS of $0.63, down 64.61% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.98 billion, down 33.82% from the year-ago period.
PFE's full-year Zacks Consensus Estimates are calling for earnings of $3.33 per share and revenue of $66.47 billion. These results would represent year-over-year changes of -49.39% and -33.75%, respectively.
It is also important to note the recent changes to analyst estimates for Pfizer. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Pfizer currently has a Zacks Rank of #3 (Hold).
Investors should also note Pfizer's current valuation metrics, including its Forward P/E ratio of 9.82. Its industry sports an average Forward P/E of 14.62, so we one might conclude that Pfizer is trading at a discount comparatively.
Meanwhile, PFE's PEG ratio is currently 1.09. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 1.75 based on yesterday's closing prices.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 22% 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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