Pfizer (PFE) Stock Sinks As Market Gains: What You Should Know

Pfizer (PFE) closed the most recent trading day at $51.64, moving -1.28% from the previous trading session. This move lagged the S&P 500's daily gain of 0.16%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq gained 0.49%.

Coming into today, shares of the drugmaker had lost 1.78% in the past month. In that same time, the Medical sector lost 1.13%, while the S&P 500 lost 6.79%.

Pfizer will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2022. On that day, Pfizer is projected to report earnings of $1.83 per share, which would represent year-over-year growth of 71.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $28.48 billion, up 50.06% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.61 per share and revenue of $105.06 billion. These totals would mark changes of +49.55% and +28.93%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Pfizer. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from 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. The Zacks Consensus EPS estimate has moved 0.08% higher within the past month. Pfizer is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Pfizer is holding a Forward P/E ratio of 7.92. This represents a discount compared to its industry's average Forward P/E of 13.23.

Also, we should mention that PFE has a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 2 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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