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Pfizer (PFE) Is The 'Chart of the Week'
Bob Lang, Co-Portfolio Manager of Trifecta Stocks, has identified Pfizer (PFE) as his Chart of the Week.
By Andrew Meola
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NEW YORK (TheStreet) -- Shares of Pfizer (PFE) - Get Report are up 1.32% to $34.97 in late morning trading Wednesday.
The company announced earlier this week that it and Eli Lilly (LLY) - Get Report would resume late-stage trials of their drug tanezumab for chronic pain after the U.S. Food and Drug Administration removed a partial hold on studies of it and similar medicines. Pfizer anticipates a $200 million upfront payment from Lilly because of this.
Bob Lang, Co-Portfolio Manager of Trifecta Stocks, has identified Pfizer as his Chart of the Week. Here is what Lang had to say about the stock:
Pfizer is one of the biggest pharmaceutical names in the world, boasting a market cap of more than $214 billion. After absorbing some very big acquisitions over the years, Pfizer became a stodgy old company whose returns barely kept pace with the market. But perhaps those days are behind Pfizer, and the excitement over new drug approvals across different areas of medicine might become new revenue generators. And of course, they always have Viagra to help give sales a nice "pop."
As we look to the chart and technicals, the price action has been very positive since the fall, with the stock moving up a strong 35% since the lows just six months before. What has caught my
interest, however, is the option flow, specifically some big money coming after various call strikes. Flow is the volume that comes after options, either puts or calls. In this case we have discovered some sizable trades in weekly and monthly strikes. This was not happenstance - this has been persistent for days and weeks. Some institutions are very serious about building a position in the name - they are waiting for a big payday.
The chart shows a series of higher highs and higher lows with strong stock turnover. Pfizer is up 15% YTD, and it is on pace for a very solid 2015, though we know that pace likely won't continue. Regardless, the strongest names get the money flow, and Pfizer is surely in that camp.
Separately, TheStreet Ratings team rates PFIZER INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PFIZER INC (PFE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."