Can Pfizer Continue Its Surge Higher?

More importantly, did these numbers meet the street’s expectations? Let’s take a look at the last 4 quarterly earnings announcement reactions in order to gauge investor sentiment on Pfizer’s stock. The last 4 quarters have seen next trading session returns of 3.19 percent, -1.29 percent, 1.4 percent, and -0.53 percent. According to these reactions, investors have been mixed over the last 4 quarters but really liked the most recent numbers. A company who exceeds expectations generally performs well for the rest of the quarter.

E = Excellent Relative Performance Versus Peers and Sector

Pfizer stock has been steadily rising since its breakout in 2011 and has performed relatively well for a company of its size. As of today, Pfizer is showing a 3.47 percent return year-to-date. Its closest competitors, Merck (NYSE:MRK), Novartis (NYSE:NVS), Sanofi (NYSE:SNY), and industry are returning 2.88 percent, 8.27 percent, -2.63 percent, and 5.47 percent, respectively. So, Pfizer is by no means the leader, but it has done decently year-to-date.

Conclusion

Pfizer is a giant in its industry and it looks to capitalize on the increasing demand for healthcare. On the price chart, it broke out from a multi-year downtrend but looks to be pausing for a breather now. However, the simple moving averages are still indicating that a strong uptrend is intact. As seen in the options market, investors seems to be hedging their gains as order flow is showing a neutral to bearish stance. The most recent earnings and revenue growth figures have pleased investors, and it shows in their year-to-date performance. Relative to its peers, this large drug manufacturer is in the middle of the pack. Look for Pfizer stock to continue to OUTPERFORM.

Using a solid investing framework such as this can help improve your stock-picking skills. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.