2016-08-12 15:37:51

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;
  • At the end of August the company issued report for Q2 of the fiscal year 2016. Investors’ reaction to Pfizer Inc. report was mixed. Company’s stocks fell by over 5%. Currently, the issuer may undergo correction;
  • According to press-release, company’s revenue has dropped by 3% up to 13.1 billion USD, which was above the forecast of 12.9 billion USD. Net profit of Pfizer Inc. has grown by 14%, up to $0.67 per share against the forecast of $0.62 per share;
  • At the press-conference company’s management said that revenue dropped due to pressure from the strong USD. Operations profit of the company has grown by 13%, up to 1.6 billion USD. Income from activities abroad has decreased by 1% to 6.8 billion USD. At the same time, sales in the US has grown by 27%, up to 6.3 billion USD;
  • Pfizer Inc. confirmed the forecast for the current fiscal year. The company expects revenue and profit at the level of 51-53 USD billion and $2.38-$2.48 per share, respectively. Analysts predict that revenue and net profit will be at the level of 52.6 billion USD and $2.46 per share respectively.

Summary:

  • Investors’ reaction to Pfizer Inc. report was mixed. Despite pressure from the strong USD, company’s results have exceeded market expectations. The company has strong growth potential. Positive forecast for the current year will boost the rise in company’s stocks.
  • 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: 34.70 USD and 34.20 USD.
Resistance levels: 35.20 USD and 36.20 USD.

Medium-term trading, Н1
At the moment the issuer is traded at resistance level of 35.20 USD. After breaking out and testing of this level 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 35.70 USD, 36.10 USD and 36.50 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 34.95/35.25 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