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

In the latest trading session, Pfizer (PFE) closed at $56.65, marking a -0.07% move from the previous day. This change lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.14%.

Coming into today, shares of the drugmaker had gained 2.07% in the past month. In that same time, the Medical sector lost 1.05%, while the S&P 500 gained 0.12%.

Pfizer will be looking to display strength as it nears its next earnings release, which is expected to be February 8, 2022. In that report, analysts expect Pfizer to post earnings of $0.84 per share. This would mark year-over-year growth of 100%. Our most recent consensus estimate is calling for quarterly revenue of $23.89 billion, up 104.43% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Pfizer. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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. The Zacks Consensus EPS estimate has moved 24.66% higher within the past month. Pfizer currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Pfizer currently has a Forward P/E ratio of 9.95. Its industry sports an average Forward P/E of 13.03, so we one might conclude that Pfizer is trading at a discount comparatively.

Meanwhile, PFE's PEG ratio is currently 0.8. 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. Large Cap Pharmaceuticals stocks are, on average, holding a PEG ratio of 2.01 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 211, which puts it in the bottom 18% 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.

To follow PFE in the coming trading sessions, be sure to utilize Zacks.com.


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