Pfizer Inc Stock Buy Recommendation Reiterated (PFE)

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, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 28.07% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • PFIZER INC has improved earnings per share by 5.3% 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 $1.26 versus $1.07 in the prior year. This year, the market expects an improvement in earnings ($2.28 versus $1.26).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 338.8% when compared to the same quarter one year prior, rising from $1,439.00 million to $6,315.00 million.
  • The gross profit margin for PFIZER INC is currently very high, coming in at 71.20%. 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 41.91% significantly outperformed against the industry.
  • PFE, with its decline in revenue, underperformed when compared the industry average of 7.3%. Since the same quarter one year prior, revenues fell by 10.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

Pfizer Inc., a biopharmaceutical company, engages in the discovery, development, manufacture, and sale of medicines for people and animals worldwide. Pfizer has a market cap of $198.72 billion and is part of the health care sector and drugs industry. The company has a P/E ratio of 21.4, above the S&P 500 P/E ratio of 17.7. Shares are up 7.6% year to date as of the close of trading on Wednesday.

You can view the full Pfizer Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE
null

If you liked this article you might like

The Wait for 'Milestone' Fed Meeting Keeps Stocks in Flux

The 6 Medications Being Used to Tackle the Opioid Epidemic

Allergan's Restasis Patent Transfer to Face Precedent-Setting Legal Battle

Friday Selloff May Be On Its Way; Tenet Gears Up for Sale -- ICYMI

Dow Posts Fresh Record, Third in a Row, but S&P 500 and Nasdaq Fall