Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model. NEW YORK ( TheStreet) -- Pfizer (NYSE: PFE) has been reiterated by TheStreet Ratings as a buy with a ratings score of A+ . The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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- Powered by its strong earnings growth of 32.25% and other important driving factors, this stock has surged by 27.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PFE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- PFIZER INC has improved earnings per share by 32.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, PFIZER INC increased its bottom line by earning $1.08 versus $1.02 in the prior year. This year, the market expects an improvement in earnings ($2.20 versus $1.08).
- The gross profit margin for PFIZER INC is currently very high, coming in at 72.80%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, PFE's net profit margin of 23.00% compares favorably to the industry average.
- PFE, with its decline in revenue, underperformed when compared the industry average of 4.9%. Since the same quarter one year prior, revenues fell by 18.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Pharmaceuticals industry average. The net income has decreased by 14.2% when compared to the same quarter one year ago, dropping from $3,738.00 million to $3,208.00 million.
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