Why Pfizer (PFE) Dipped More Than Broader Market Today

Pfizer (PFE) closed the most recent trading day at $26.97, moving -1.61% from the previous trading session. This change lagged the S&P 500's 1.51% loss on the day. Meanwhile, the Dow lost 0.97%, and the Nasdaq, a tech-heavy index, lost 2.01%.

The stock of drugmaker has risen by 2.05% in the past month, leading the Medical sector's loss of 7.54% and the S&P 500's loss of 3.63%.

Analysts and investors alike will be keeping a close eye on the performance of Pfizer in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.77, marking a 16.3% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $13.83 billion, up 0.86% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.97 per share and a revenue of $61.01 billion, representing changes of -7.76% and -2.51%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Pfizer. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.15% higher. Pfizer presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Pfizer is currently exchanging hands at a Forward P/E ratio of 9.22. For comparison, its industry has an average Forward P/E of 14.19, which means Pfizer is trading at a discount to the group.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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Pfizer Inc. (PFE): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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