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Pfizer Inc. (PFE)

Pfizer stock forecast: buy or sell

Close on Oct 23rd, 2020
$38.18 +2.00%
3 months performance
0.00%
Published: October 25th, 2020 - 5.37pm EDT

Pfizer stock outlook

  • Pfizer closed on Friday at $38.18 after climbing a 2% and broke a streak of 3 sessions in positive.
  • Pfizer is presenting its earnings report on Tuesday next week
  • The price is currently above the upper Bollinger band, which often indicates a near-term correction
  • Truist posted a strong positive rating for Pfizer on Friday, targeting $42.00
  • The stock is configuring an uptrend pattern since last March, when it bottomed at $27.34. This rally marked a 39.65% gain
  • Pfizer Inc. develops, manufactures, and sells healthcare products worldwide.

Important:
The comments given in this post are personal and not recommendations for you to buy or sell stocks. The author of this text does not have an understanding of the specific conditions of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Opinions are posted for educative motives only

Pfizer stock charts

Should I buy Pfizer stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $PFE stock a buy?

In the current situation of Pfizer there is just one buy setup eligible:

Uptrend buy setup

Pfizer stock continues to trend higher since last March and has marked an amazing 39.65% gain. Price marked a local bottom in this uptrend at $35.38 in mid-September, and since then it bounced up a 7.91%. Now, it's only 2.41% away from breaking out above its last top and resume the uptrend. The new buy point is therefore at $39.10. If you decide to enter this trade, the suggested stop loss is at $35.19

Buy setupBuy pointStop lossRisk
Uptrend buy setup$39.10$35.1910%

Should I sell Pfizer stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies prevent us from making impetuous decisions based on our emotions or the noise surrounding the market. When selling, as well as buying, our setups are very easy to use but are only valid for selling stocks you already own, not for selling short $PFE stock

As a golden rule, you must never hold a trading operation that results in higher than expected losses upon purchase. When to sell shares always has to be dictated by the stop-loss (automatic or manual)

Is it time to sell Pfizer stock?

In the current situation of Pfizer there is not any eligible sell setup, so Pfizer stock holders with operations in green can keep their positions

Analysts' recommendations to buy or sell Pfizer stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 3 analyst ratings were published for Pfizer

Pfizer ratings

Brokerage firmRating
Sep 29th, 2020
Berenberg Bank Neutral
Oct 12th, 2020
Atlantic Securities BuyNeutral
Oct 23rd, 2020
Truist Strong buy

Technical analysis

Since last March, Pfizer has been drawing an uptrend that so far marked a gorgeous 39.65%. The price line shows higher peaks and higher lows, and along the way provided some buying opportunities for those who wanted to enter. Latest pullback was in mid-September, when price bounced at $35.38. Like in all uptrends, price needs to rest and now price is moving in a range between $39.10 and $35.38

SMAs overview

A favorite tool of many technical analysts are the moving averages, that easily show trend direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Moving averages are usually calculated on different periods depending on the trading timeframe 21, 50, 100 and 200 days are the most usual moving averages

PFE SMAs chart

Supports and resistances

Technical analysts use supports and resistances to identify price points in the stock price action that tend to work as barriers, containing the price of shares to move up or down. Supports are levels where the price may find support as it falls. Price is more likely to "rebound" this level rather than break through it. However, if the price breaks down the support, it is likely to continue falling until finding another support level. In contrast, a resistance level is where the price tends to find a curb as it rises. In the same manner, this means that the price is more liable to "bounce off" at this level, and if it finally crosses this level, the price will climb more easily until it approaches the next resistance

The current resistance levels are:

  • R1: $38.46 (0.73% above)
  • R2: $38.69 (1.34% above)
  • R3: $38.90 (1.89% above)
  • The current supports are:

  • S1: $38.16 (-0.05% below)
  • S2: $38.08 (-0.26% below)
  • S3: $37.83 (-0.92% below)
  • Bollinger bands

    This is an indicator that was introduced in the 1980s by John Bollinger. Fundamentally, the Bollinger Bands are lines that run around a moving average, varying the distance from the bottom to the top depending on market volatility. They are usually plotted by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    When the price moves out of the band (above the upper line or below the lower line) it shows that the price action is having a very strong trend and therefore can correct the trend to the average. For this case, the price is beyond the upper band, which should mean a possible near-term corrective movement (at least) until it is below the band

    PFE RSI chart

    Relative strength index

    The Relative Strength Index is an oscillator-type indicator that measures price movements to reveal when the price of a share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are designed to indicate values in the range of 0-100. The relative strength indicator is one of the best known and most widely used indicators, invented by J. Welles Wilder in 1978

    When the RSI stays for so long below 70 and above 30, without indication of overbought and oversold, the indicator becomes of little use, and we are now in one of these cases.

    PFE RSI chart

    Earnings and financials

    Pfizer ($PFE) is hosting the quarterly earnings call on Tuesday next week. Forecasted earnings per-share for this quarter is $0.71, compared to $0.78 that was reported for Q2. Turn over estimates are $12.3 billion.

    Stocks presenting earnings usually show a much higher volatility in price action during after-hours trading and the session after. This volatility may imply that your stop-loss orders may become useless or may trigger far from your aimed price. Pfizer's website probably has further details.

    In late July, Pfizer Inc. ($PFE) posted EPS for FQ2 that strongly surpassed Market expectations. Quarterly EPS was $0.78 per share instead of $0.66. This quarterly report represents an earnings surprise of 18.18%.

    In contrast, the EPS for the same quarter last year was $0.80, so posted EPS means a drop of -2.5%.
    PFE revenues and profits chart