Pfizer (NYSE:PFE) stock rose 1.7% in extended trading on Thursday. The company announced that it identified a lead drug to treat COVID-19. On Thursday, Pfizer stock rose 2.3% and closed at $35.39. Based on the last closing price, the company has a market cap of $196.3 billion. The stock price has risen 7.7% in the trailing five-day period, while it has fallen 17.4% in the trailing 12-month period.
Currently, Pfizer stock is trading 20.6% below its 52-week high of $44.56 on July 3, 2019. The stock is also trading 26.9% above its 52-week low of $27.88 on March 23, 2020. On a year-to-date basis, the stock has fallen 9.7% as of Thursday.
Pfizer is one of the healthcare companies that’s working on a vaccine for the coronavirus. The stock rose after reports that the company identified a potential coronavirus treatment. According to a CNBC report, Pfizer’s chief scientific officer, Dr. Mikael Dolsten, said, “The potential treatment has shown positive signs in preclinical work and that the antiviral would be administered early in the disease process.” The report also said, “Pfizer initially aimed to enter clinical trials for a coronavirus drug by the end of 2020, but now hopes to start the trial just a few months from today.”
Pfizer’s growth projections
Pfizer reported sales of $51.75 billion in 2019—a fall of 3.5% YoY (year-over-year) from sales of $53.65 billion in 2018. The company reported an adjusted EPS of $2.95 in 2019 compared to $3.00 in 2018. Wall Street analysts expected the company to report revenues of $51.63 billion and earnings of $2.97 in 2019.
Wall Street analysts expect Pfizer to post sales of $11.8 billion in the first quarter. The figure would mark a fall of 9.8% YoY compared to $13.1 billion in the first quarter of 2019. Also, analysts expect the company to post an adjusted EPS of $0.73 in the first quarter compared to $0.85 in the same period last year. Currently, analysts expect -3.6% and 2.9% growth in the company’s 2020 and 2021 revenues, respectively. Meanwhile, they expect an adjusted EPS of $2.88 and $3.09 in 2020 and 2021, respectively.
Among the 16 analysts covering Pfizer stock, seven recommend a “buy,” while nine recommend a “hold.” None of the analysts recommended a “sell” over the last seven months.
Analysts have an average target price of $41.14 on Pfizer. The target price implies a return of 16.2% based on the closing price of $35.39 on Thursday. The consensus target price for the stock has fallen from $42.07 in March—a fall of 2.2%.
Pfizer’s stock returns
On Thursday, Pfizer stock was trading 10.7% above its 20-day moving average of $31.96. Meanwhile, the stock is trading 3.4% above its 50-day moving average of $34.24 and 3.2% below its 100-day moving average of $36.56. The stock’s 14-day relative strength index score of 58 indicates that it isn’t overbought or oversold.
Pfizer has an upper Bollinger Band level of $35.73. The company’s middle Bollinger Band level is $31.96, while its lower Bollinger Band level is $28.19. On Thursday, the stock closed near its upper Bollinger Band level, which suggests that the stock is overbought.
Currently, Pfizer stock is trading at 12.29x its fiscal 2020 estimated EPS of $2.88. Meanwhile, the stock is trading at 11.45x its fiscal 2021 estimated EPS of $3.09. Wall Street analysts expect Pfizer’s earnings to rise at a CAGR of 0.6% over the next five years.
Abbott Laboratories (NYSE:ABT), Johnson & Johnson (NYSE:JNJ), and Medtronic (NYSE:MDT) stocks returned 1.4%, -1.4%, and 1.8% on Thursday. On the same day, the S&P 500 and the Dow Jones Industrial Average rose 1.4% and 1.2%, respectively. Read COVID-19: Have US Stock Markets Bottomed Out? to learn more.