In the latest trading session, Pfizer (PFE) closed at $36.42, marking a -1.27% move from the previous day. This move lagged the S&P 500's daily gain of 1.15%. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 7.23%.
Prior to today's trading, shares of the drugmaker had lost 1.89% over the past month. This has lagged the Medical sector's gain of 2.4% and the S&P 500's gain of 3.08% in that time.
Wall Street will be looking for positivity from Pfizer as it approaches its next earnings report date. This is expected to be August 1, 2023. On that day, Pfizer is projected to report earnings of $0.63 per share, which would represent a year-over-year decline of 69.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.01 billion, down 49.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.35 per share and revenue of $68.1 billion. These totals would mark changes of -49.09% and -32.13%, respectively, from last year.
Any recent changes to analyst estimates for Pfizer should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Pfizer is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Pfizer has a Forward P/E ratio of 11.02 right now. For comparison, its industry has an average Forward P/E of 14.76, which means Pfizer is trading at a discount to the group.
Investors should also note that PFE has a PEG ratio of 1.22 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PFE's industry had an average PEG ratio of 1.75 as of yesterday's close.
The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% 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.
To follow PFE in the coming trading sessions, be sure to utilize Zacks.com.
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