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:

  • The company ranks the third on capitalization in the sector of “Health care” among the issuers traded in the American stock market;
  • Over the past month, company’s  stock has grown amid the rise in the US stock market (ETF on the S&P 500 index - #SPY has increased in price for more than 1.5%) and the optimistic report for the first quarter of the fiscal year 2016;
  • Company’s results exceeded market expectations. Revenue has increased by 20%, up to 13 billion USD. Net profit has grown by 32%, up to $0.67 per share;   
  • The company has a supply of available funds (more than 15.5 billion USD), which it can used for the development and diversification of the business. Earlier, Pfizer announced the purchase of Anacor Pharmaceuticals Inc. for over 5.2 billion USD. The deal should be finalized in the third quarter of the current fiscal year;
  • Another factor, which indicates possibility of the further increase in the company’s value is P/E Ratio. PFE P/E Ratio (28.67) is significantly below the average P/E in the industry (33.86) and in the sector (35.10), which indicates possibility of further growth of the company’s stocks;
  • Over 70% of all company’s stocks belong to the institutional investors. The highest share of stocks belongs to Vanguard Group (6.22%) and State Street Corporation (5.01%).

Summary:

  • The results indicated in the last report shows that management of the company is on the right track. Despite pressure from the strong USD, the rise in the company’s revenue and net profit has exceeded market expectations.
  • Pfizer Inc. has strong growth potential.
  • Most part of the company’s stocks belong to the large investment funds.
  • 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: 34.60 USD and 33.90 USD.
Resistance levels: 35.50 USD.

Medium-term trading, Н4
At the moment the issuer is traded in the demand zone of 34.60-34.95 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 35.40 USD, 36.50 USD and 37.25 USD with the use of trailing stop.

Medium-term trading, Н4

Medium-term trading, Н4

Short-term trading М15
Currently the issuer has broken down the local resistance level of 34.95 USD. If the price maintains and tests the mirrored support level of 34.95 USD, to is advisable to open long positions in the market. Risk per trade is not more than 3% of the capital. Stop order can be placed at the level of 34.80 USD. Take profit can be placed in parts at the levels of 35.25 USD, 35.40 USD and 35.70 USD with the use of trailing stop.

Short-term trading М15

Short-term trading М15




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