Neutral Outlook with hope in the bigger picture
Pfizer Inc.(PFE) earnings announcement for the First Quarter of 2022 will release on May 3 before the market open. The report will cover the fiscal Quarter ending Mar 2022. According to Zacks Investment Research, based on five analysts' forecasts, the EPS is estimated at $1.66. The reported EPS for the same Quarter last year was $0.93. You would wonder to know that Pfizer could keep its "high" ranking of Earnings Quality for the 50th consecutive week. "Earnings Quality ranking (EQR) is a weekly ranking of relative earnings quality for a large universe of publicly traded US equities. Companies are compared to peers in their industry" (NASDAQ)
While it is still a valued stock, Pfizer's stock has lost 16.2% this year, while the overall industry gained 4.5% for the same period. And that was the reason for Zacks's analysts to be a bit more cautious and rank it as #3 (Hold). The latest news also was about its COVID-19 oral antiviral treatment Paxlovid, which was not effective at preventing coronavirus infections in people living with someone infected with the virus. It caused -a 1.49% decline in its share price to close at $48.41 on Monday, May 2, the day before the earnings report.
On Tuesday Report we have to watch its sales report detail as well. The best-selling and most essential products that should be reviewed are Oncology (expected to increase), Ibrance (Expectations are about a decline in sales), and COVID-19 vaccine (In partnership with BioNTech) Comirnaty and Pfizer's oral antiviral pill for COVID, and Paxlovid, that generally are expecting to drive the Pfizer's sales in the first quarter.
Since some products are expected to increase and, in return, the sales of some other products are expected to decrease, we have natural results expectations, not a big surprise, neither positive nor negative.
From the technical point of view also it is almost the same—the natural trend in a range. The pivot point and 20DMA sit at $51.20, while the first resistance and Support levels respectively are seen at $55.32 and $45.50. Any up or downtrend would be above or under mentioned area, while in the bigger picture overall trend remains bullish.
