Pfizer Inc Stock Buy Recommendation Reiterated (PFE)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The strong earnings growth this company has enjoyed -- up -- has apparently played a role in driving up its share price by a solid 28.78%. In addition, the rise in the general market has likely contributed to this stock's strong performance during this past year.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 reported significant earnings per share improvement 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 two years. We feel that this trend should continue. During the past fiscal year, PFIZER INC increased its bottom line by earning $1.26 versus $1.06 in the prior year. This year, the market expects an improvement in earnings ($2.17 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 52.8% when compared to the same quarter one year prior, rising from $1,794.00 million to $2,742.00 million.
  • The current debt-to-equity ratio, 0.49, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, PFE has a quick ratio of 1.75, which demonstrates the ability of the company to cover short-term liquidity needs.

Pfizer Inc., a biopharmaceutical company, discovers, develops, manufactures, and sells medicines for people and animals worldwide. Pfizer has a market cap of $203.4 billion and is part of the health care sector and drugs industry. Shares are up 14.4% year to date as of the close of trading on Tuesday.

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.

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