The relative strength index (RSI) suggests shares of the stock be poised to rise as well. The RSI has been trending higher, and like the stock price, a bullish symmetrical triangle pattern has developed as well.The options are also suggesting the stock may rise by the middle of September, increasing by about 5% to $38.40. The open interest has been steadily growing for the $38 calls set to expire on Sept. 21 to nearly 27,000 open contracts.
PFE PE Ratio (Forward 1y)
Pfizer‘s stock trades at about 11.9 times 2019 earnings estimates of $3.08 per share, making it cheaper than the S&P 500 one-year forward P/E of about 16.6. Additionally, it trades at the lowest price to earnings (P/E) multiple when compared to its peers. Pfizer’s valuation has been the weakest among its peers over the past year.
Part of the reason for the low earnings multiple is a lack of longer-term earnings growth. Although Pfizer is expected to post robust earnings growth in 2018 of 11.3%, that growth is likely to slow to roughly 4% over the next two years.
At this point, Pfizer’s cheap valuation maybe enough to lift shares over the short term, but a sustainable rally will need a shot of solid longer-term earnings and revenue growth.
Pfizer Inc Company Profile:
Industry: Biotechnology & Drugs
Pfizer Inc. (Pfizer) is a research-based global biopharmaceutical company. The Company is engaged in the discovery, development and manufacture of healthcare products. Its global portfolio includes medicines and vaccines, as well as consumer healthcare products. The Company manages its commercial operations through two business segments: Pfizer Innovative Health (IH) and Pfizer Essential Health (EH). IH focuses on developing and commercializing medicines and vaccines, as well as products for consumer healthcare. IH therapeutic areas include internal medicine, vaccines, oncology, inflammation and immunology, rare diseases and consumer healthcare. EH includes legacy brands, branded generics, generic sterile injectable products, biosimilars and infusion systems. EH also includes a research and development (R&D) organization, as well as its contract manufacturing business. Its brands include Prevnar 13, Xeljanz, Eliquis, Lipitor, Celebrex, Pristiq and Viagra.
Address: New York, NY 10017-5703, United States