Financial News
1 Stock To Potentially Shine and Break the Market For 5 years.
Pfizer Inc. (PFE) surpassed earnings per share projections by 27% in the third quarter of 2022. Furthermore, the United States Food and Drug Administration (FDA) recently granted Emergency Use Authorization to PFE and BioNTech SE’s (BNTX) Omicron BA.4/BA.5-adapted bivalent COVID-19 vaccine, the third 3-g dose in a three-dose main series for children aged six months to four years.
This approval adds another feather to PFE’s crown. The epidemic has benefited the company significantly.
Furthermore, PFE has outperformed the larger market. PFE has gained 50.5% in the last five years and 9.6% in the last month, while SPY has gained 49.5% in the last five years and slightly in the last month.
PFE is up 9.2% in the last three months and 4.4% in the last six months, closing the most recent trading session at $52.16.
Furthermore, the stock has a stellar dividend history. PFE has paid dividends for 33 years in a row. Dividend payments have climbed at a CAGR of 5.7% during the last five years. It now has a dividend yield of 3.14%, with a four-year average yield of 3.63%.
Here are some factors that could influence PFE’s performance in the near term:
The Bottom Line
PFE’s United States sector revenues were $13.85 billion in the third quarter that ended October 2, 2022, increasing 97.3% year on year.
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Non-GAAP net income was $10.17 billion, up 39.7% year on year. Its non-GAAP EPS was $1.78, up 40.2% year on year. Furthermore, its income from ongoing activities increased by 5.8% year on year to $8.64 billion.
Attractive Pricing
The forward EV/Sales ratio of PFE is 2.94x, which is 26.2% lower than the industry average of 3.99x. The company’s projected EV/EBITDA ratio of 6.62x is 50.2% lower than the industry average of 13.30x.
Furthermore, its forward Price/Sales is 2.93x, which is 33.7% lower than the industry average of 4.42x, and its trailing-12-month Price/Cash Flow is 11.01x, which is 37.9% lower than the industry average of 17.73x.
A profitability that is robust
PFE’s trailing 12-month gross profit margin of 66.17% exceeds the industry average of 55.29% by 19.7%. Its trailing 12-month EBITDA margin of 44.81% exceeds the industry average of 3.73%, and its trailing 12-month net income margin of 29.81% is above the negative industry average of 5.94%.
Furthermore, its trailing-12-month ROCE, ROTC, and ROTA were 35.59%, 20.30%, and 15.24%, respectively, compared to the negative industry averages of 39.69%, 21.95%, and 31.22%.
POWR Ratings Reflect a Bright Future
In our patented POWR Ratings system, PFE has an overall rating of A, which translates to a Strong Buy. The POWR Ratings are determined by taking into account 118 different factors, each of which is weighted to an optimal degree.
Our proprietary rating methodology also assesses each stock in eight other categories. PFE received an A for Value, which is consistent with its lower-than-industry value multiples.
It received a B grade for Growth and Quality, reflecting its robust bottom-line growth in the most recent reported quarter and higher-than-industry profitability margins.
PFE is placed second in the 160-stock Medical – Pharmaceuticals industry.
Additional POWR Ratings for PFE can be seen by clicking here (Momentum, Stability, Sentiment).
In conclusion
PFE reported good financial results in the most recent quarter. PFE is also trading above its 50-day and 200-day moving averages, which are $46.74 and $49.16, respectively. PFE is likely to outperform the market in the future years, owing to its strong momentum and good fundamentals. As a result, it could be a good time to buy right now.
How Does Pfizer Inc. (PFE) Compare to Its Peers?
While PFE has an overall POWR Rating of A, its industry peers Novo Nordisk A/S (NVO – Get Rating), Bristol-Myers Squibb Company (BMY), and Johnson & Johnson (JNJ) all have an overall A (Strong Buy) rating.
On Tuesday morning, PFE shares were trading at $53.33, up $1.17 (+2.24%). PFE is down -6.75% year to date, compared to a -13.84% rise in the benchmark S&P 500 index.
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