Buy Pfizer (PFE) Stock for a Rebound After Crushing Q1 EPS Expectations?

Core Insights - Pfizer (PFE) shares increased by 3% following the release of Q1 earnings that significantly exceeded expectations, although the stock has declined 10% year-to-date [1][6] - The company is trading near multi-year lows at approximately $20 per share, which may attract investors looking for a rebound [2][6] Q1 Results - Pfizer reported Q1 earnings of$0.92 per share, surpassing EPS expectations of $0.64 by 43$0.82 in the same quarter last year [3][4] - Q1 sales totaled $13.71 billion, falling short of estimates of$13.83 billion and down from $14.87 billion year-over-year [4] Full-Year Guidance - Pfizer reaffirmed its fiscal 2025 guidance, projecting revenues between$61 billion and $64 billion, with Zacks projections at$63.48 billion [7] - The company expects adjusted FY25 EPS to be in the range of $2.80 to$3.00, with the Zacks Consensus at $2.99 [7] Valuation Metrics - Pfizer's stock is trading at a price-to-forward earnings ratio of 7.7X, significantly lower than its decade-high of 20.1X and below the S&P 500's 21.3X [8] - The stock is also trading at a discount compared to the Zacks industry average of 16.4X [8] Dividend Information - Pfizer offers an annual dividend yield of 7.46%, which is substantially higher than the industry average of 2.51% and the benchmark's 1.33% [10] - The company has increased its dividend for 16 consecutive years, despite losing its dividend aristocrat status during the 2008 financial crisis [10] Market Sentiment - Following the Q1 report, Pfizer holds a Zacks Rank 2 (Buy), with earnings estimate revisions for FY25 and FY26 trending upward [12] - The company's strong performance in exceeding EPS expectations and its cost-saving initiatives may enhance its valuation and attract long-term investors [13]