This week, Pfizer (PFE) stays a Hold based on the most recent relative pricing of its shares and analysis. The reasoning behind Pfizer Inc's (NYSE:PFE) current Hold recommendation is an analytical score that is near average, a ranking in the company's sector group that is in the middle third, a ranking in its industry group that is in the middle third-below average, and a numerical calculation of risk/reward that is average. Being in a sector that is ranked near average in investment attractiveness is a plus from a recommendation perspective; however, its industry group is ranked below average in attractiveness which may equalize this to some extent. PFE has recently seen its Portfolio Grader rating downgraded over the last month from a Buy to a Hold.
PFE is one of the 657 companies in the GICS Health Technology sector and is a constituent of the 38 company Pharmaceuticals: Major GICS industry group within this sector. PFE has a market value of $213.2 billion which is in the top 10% of its industry group The current Portfolio Grader ranking for PFE puts it 20 among the 38 companies in this industry group, which is a below-average position.
Portfolio Grader currently ranks the Health Technology sector number 11 among the 20 sectors in its universe putting it in the third quartile of all the GICS sectors. The Pharmaceuticals: Major industry group is ranked 82 among the 129 industry groups within the GICS sectors, placing it below-average in terms of the Proprietary Quantitative Score scoring system.
PFE has attained above-average scores in 5 of the 8 fundamental metrics used by Portfolio Grader and average or below-average scores in 3 of the areas evaluated in the ranking of company stocks.
PFE's operational scores provide mixed results with rankings for operating margin and earnings growth that are well above average, while the score for sales growth is below average. Scores for visibility of earnings are mixed, with a ranking for earnings revisions and earnings surprises that are better than average, while the score for earnings momentum is worse than average. PFE's score for return on equity is markedly better than its industry group average but its grade for cash flow is below-average. Pfizer's fundamental scores give PFE a place in the top decile of the industry group.
Quantitatively, Portfolio Grader uses the Proprietary Quantitative Score to gauge PFE's shares from the viewpoint of risk/reward. This exclusive scoring methodology considers the relative value of the company's shares based on the recent $35.77 share price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Based on this risk/reward calculation, PFE currently scores below-average in its industry group compared to its peers.
The Proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.