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 - 27.12;
ATR - 0.58.

Analytical review:

  • Since the beginning of February 2016 the rise in the company’s stock has exceeded 15.5%. It is expected that the rise will continue;
  • The company ranks the third on capitalization in the sector of “Health care” among the issuers traded in the American stock market;
  • At the beginning of May the company issued report for Q1 of the fiscal year 2016, which showed that company’s revenue has grown by 20% up to 13 billion USD against market expectations of 11.9 billion USD. In the reporting period net profit of Pfizer Inc. has grown by 32% up to 0.67 USD per share against the forecast of 0.55 USD per share;
  • The company continues to develop and diversify business. The company plans to purchase Anacor Pharmaceuticals Inc. for 5.2 billion USD in order to develop new drugs for eczema. Currently the company is negotiating possibility of acquisition of Medivation Inc., which is a manufacturer of drugs against cancer;
  • The company issued revised forecast for the fiscal year 2016. According to which the rise in sales volume will grow up to 51-53 billion USD against the previous forecast of 49-51 billion USD. The rise in revenue is expected to reach 2.38-2.48 USD per share against the previous forecast of 2.20-2.30 USD per share.

Summary:

  • The results indicated in the last report, has increased investors’ confidence to the company. Despite pressure from the strong USD, company’s revenues and net profit rose higher than expected in the market. Pfizer Inc. has strong growth potential. Revised forecast for the current fiscal year will promote the rise in price of company’s shares.
  • It is likely that in the near future company’s quotes will go down. .

Trading tips for CFD of Pfizer Inc.

Key levels:
Support levels: 32.85 USD, 32.50 USD and 31.80 USD.
Resistance levels: 33.50 USD and 33.90 USD.

Medium-term trading, Н4
At the moment the issuer is traded in the demand zone of 32.85-33.50 USD. If the price maintains this zone 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 34.25 USD, 35.00 USD and 36.25 USD with the use of trailing stop.

Medium-term trading, Н4
Medium-term trading, Н4

Short-term trading, М15
Currently the issuer is traded between the local support and resistance levels of 33.25/33.55 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




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