Is Pfizer (PFE) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Pfizer (PFE) is a stock many investors are watching right now. PFE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.93 right now. For comparison, its industry sports an average P/E of 14.19. PFE's Forward P/E has been as high as 14.02 and as low as 10.19, with a median of 11.77, all within the past year.
We should also highlight that PFE has a P/B ratio of 3.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.49. Over the past year, PFE's P/B has been as high as 4.01 and as low as 2.91, with a median of 3.17.
Finally, our model also underscores that PFE has a P/CF ratio of 13.52. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PFE's current P/CF looks attractive when compared to its industry's average P/CF of 19.09. Over the past 52 weeks, PFE's P/CF has been as high as 17.35 and as low as 10.33, with a median of 14.16.
These are just a handful of the figures considered in Pfizer's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PFE is an impressive value stock right now.
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