2016-06-30 12:21:52

Pfizer Inc., #PFE [NYSE]
Health care, production of drugs, USA

Financial performance of the company:
Index – DJIA, S&P 500; Beta – 0.90;
Capitalization – 186.14 В; Return on asset – 5.70%;
Income - 6.95 B; Average volume – 38.61 М;
P/E - 28.22; ATR – 0.58

Analytical review:

  • ​The company ranks the third on capitalization in the sector of “Health care” among the issuers traded in the American stock market;
  • Company’s report for Q1 of the fiscal year 2016 showed that company’s revenue has grown by 20% up to 13 billion USD. Net profit of Pfizer Inc. was at the level of $0.67 per share against the forecast of $0.55 per share;
  • Over the past few sessions the price of the issuer has increased by 3.5% due to positive dynamics of the US stock market. During yesterday’s trading session ETF for the index S&P 500 (#SPY) has grown by 1.7%;
  • The company continues to develop and diversify business. In the near future Pfizer plans to invest 350 million USD to the construction of a new biotech center in China;
  • The effectiveness of the company is confirmed by the high operating margin (19.86%) and net profit (14.95%) compared with the similar companies in the industry (15.00% and 11.17% respectively);
  • Another factor indicating possibility of the further increase in price of the company - is P/E Ratio. P/E Ratio of the company (28.22) is below the average P/E in the industry (33.67) and in the sector (34.69), which indicates possibility of further growth in the company’s stocks.

Summary:

  • Company’s last report has increased investors’ confidence to the company. Company’s results exceeded market expectations. Pfizer Inc. has strong growth potential. Successful implementation of the investment projects will boost the price of the company.
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of Pfizer Inc.

Key levels:
Support levels: 34.95 USD, 34.45 USD and 33.90 USD.
Resistance levels: 35.30 USD.

Medium-term trading, Н1
At the moment the issuer has broken down resistance level of 34.95 USD. If the price maintains the mirrored support level of 34.95 USD and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 35.40 USD, 36.50 USD and 38.00 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1

Short-term trading, М15
Currently, the issuer is traded between the local support and resistance levels of 34.80/35.10 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions can be opened towards the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading М15
Short-term trading, М15