Pfizer (PFE) is a Top-Ranked Value Stock: Should You Buy?

Zacks Premium and Style Scores Overview - Zacks Premium provides tools for investors to make informed decisions, including daily updates of Zacks Rank, Zacks Industry Rank, Equity Research reports, and Premium stock screens [1] - Zacks Style Scores are complementary indicators that help investors select stocks likely to outperform the market over the next 30 days, with ratings from A (best) to F (worst) [2] Style Score Categories - Value Score: Identifies undervalued stocks using metrics like P/E, PEG, Price/Sales, and Price/Cash Flow ratios [3] - Growth Score: Focuses on a company's future prospects and financial health, analyzing projected and historic earnings, sales, and cash flow [3] - Momentum Score: Helps investors capitalize on price or earnings trends by evaluating factors like one-week price change and monthly earnings estimate revisions [4] - VGM Score: Combines Value, Growth, and Momentum Scores to identify stocks with the most attractive value, growth potential, and momentum [5] Zacks Rank and Style Scores Integration - Zacks Rank uses earnings estimate revisions to rate stocks, with 1 (Strong Buy) stocks delivering an average annual return of +25.41% since 1988, outperforming the S&P 500 [6][7] - Investors should prioritize stocks with a Zacks Rank 1 or 2 and Style Scores of A or B for the highest likelihood of success [8] - Stocks with a 4 (Sell) or 5 (Strong Sell) rank, even with high Style Scores, are likely to underperform due to downward-trending earnings forecasts [9] Case Study: Pfizer (PFE) - Pfizer operates in the biopharmaceutical industry, with a focus on Primary Care, Specialty Care, and Oncology [10] - PFE holds a Zacks Rank 2 (Buy) and a VGM Score of A, supported by a Value Style Score of A and a forward P/E ratio of 9.03 [10][11] - Nine analysts revised their earnings estimates upwards for fiscal 2024, increasing the Zacks Consensus Estimate by $0.26 to $2.88 per share, with an average earnings surprise of 74.5% [11]