Pre-Market Laggard: Pfizer (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.

Trade-Ideas LLC identified Pfizer ( PFE) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Pfizer as such a stock due to the following factors:

  • PFE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $738.8 million.
  • PFE traded 20,009 shares today in the pre-market hours as of 9:28 AM.
  • PFE is down 2.8% today from yesterday's close.

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More details on PFE:

Pfizer Inc., a biopharmaceutical company, discovers, develops, manufactures, and sells healthcare products worldwide. The stock currently has a dividend yield of 3.2%. PFE has a PE ratio of 24. Currently there are 7 analysts that rate Pfizer a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Pfizer has been 26.2 million shares per day over the past 30 days. Pfizer has a market cap of $214.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.92 and a short float of 1.2% with 3.38 days to cover. Shares are up 10.9% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Pfizer as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The current debt-to-equity ratio, 0.53, 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 1.81, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for PFIZER INC is currently very high, coming in at 86.14%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 21.87% trails the industry average.
  • PFIZER INC has improved earnings per share by 8.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PFIZER INC reported lower earnings of $1.42 versus $1.65 in the prior year. This year, the market expects an improvement in earnings ($2.03 versus $1.42).

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