Markets are significantly volatile ahead of the November jobs data release. However, despite widespread macro headwinds, the S&P 500 secured modest gains over the past month. Moreover, according to Deutsche Bank AG (DB) strategist Binky Chadha, the stock market rally isn’t over yet.
In addition, Sam Stovall, chief investment strategist for CFRA Research, said, “Right now, the stock market is assuming we don’t fall into a recession or, if we do have a recession, it will be mild and that the Fed will likely lower interest rates in the latter part of 2023.”
Veteran investment strategist Ed Yardeni also believes that the U.S. economy is resilient enough to withstand any potential recession. According to him, markets could witness a year-end rally and surge another 8%.
Pfizer Inc. (PFE)
Research-based biopharmaceutical company PFE is engaged in discovering, developing, manufacturing, marketing, distributing, and selling biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas.
On November 3, 2022, PFE’s investigational cancer immunotherapy, elranatamab, received Breakthrough Therapy Designation from the U.S. Food and Drug Administration for treating people with relapsed or refractory multiple myeloma. This approval is yet another milestone achievement for PFE in oncology.
PFE’s trailing-12-month gross profit margin of 66.16% is 20.3% higher than the industry average of 54.99%, and its trailing-12-month net income margin of 29.81% compares to the industry average of negative 6.23%.
PFE’s U.S. revenues came in at $13.85 billion for the third quarter that ended October 2, 2022, up 97.3% year-over-year. Its non-GAAP net income came in at $10.17 billion, up 39.7% year-over-year, while its non-GAAP EPS came in at $1.78, up 40.2% year-over-year.
PFE’s revenue is expected to increase 23.4% year-over-year to $100.28 billion in 2022. Its EPS is expected to increase 46.4% year-over-year to $6.47 for the same period. It surpassed EPS estimates in all four trailing quarters.
Over the past month, the stock has gained 4.3% to close the last trading session at $49.49. Wall Street analysts expect the stock to hit $52.00 in the near term, indicating a potential upside of 5.1%.
PFE’s POWR Ratings reflect its promising outlook. It has an overall A rating representing a Strong Buy in our POWR Ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
PFE has an A grade for Value and a B for Growth, Sentiment, and Quality. It is ranked #2 out of 161 stocks in the Medical – Pharmaceuticals industry. Click here to see the additional POWR Ratings for PFE (Momentum and Stability).
AT&T Inc. (T)
T provides telecommunications, media, and technical services worldwide. Its segments are Communications and Latin America.
On October 20, 2022, John Stankey, T’s CEO, said, “We’re investing at record levels to enhance our 5G and fiber connectivity and to deliver the best experience available in the market.”
T’s trailing-12-month gross profit margin of 54.35% is 8% higher than the industry average of 50.32%, while its trailing-12-month net income margin of 12.90% is 186.2% higher than the industry average of 4.51%.
For the third quarter that ended September 30, 2022, T’s equipment revenue came in at $5.31 billion, up 4.6% year-over-year. Its Fiber Broadband additions came in at 338,000, up 17% year-over-year. Moreover, its net income increased marginally year-over-year to $5.98 billion, while its adjusted EPS came in at $0.68, up 3% year-over-year.
T’s revenue and EPS for 2022 are estimated to be $128.73 billion and $2.66, respectively. It surpassed EPS estimates in all four trailing quarters. Over the past month, the stock has gained 2.9% to close the last trading session at $19.01. Wall Street analysts expect the stock to hit $20.20 in the near term, indicating a potential upside of 6.3%.
T’s overall B rating represents a Buy in our POWR Ratings system. The stock also has a B grade for Value and Quality. It is ranked #4 out of 19 stocks in the Telecom – Domestic industry. Click here to see the additional POWR Ratings for T (Growth, Momentum, Stability, Sentiment).
PFE shares fell $0.04 (-0.08%) in premarket trading Wednesday. Year-to-date, PFE has declined -13.47%, versus a -15.82% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...
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