Connect with us

Hi, what are you looking for?

Investing

Pfizer’s next move: Can it break above $30?

Pfizer Inc

Pfizer Inc. (NYSE:PFE) faced a challenging 2023 in the stock market, with its shares plummeting from over $50 to a low of $25. However, recent developments suggest a potential turnaround for the pharmaceutical giant. On May 1, 2024, Pfizer reported better-than-expected results for the first quarter of the year.

Their non-GAAP earnings per share of $0.82 surpassed expectations by $0.31, while revenue of $14.9 billion beat estimates by $980 million. Despite a 19.5% year-over-year decline in revenue, Pfizer remained optimistic, reaffirming its full-year revenue guidance of $58.5 to $61.5 billion and raising its adjusted diluted EPS guidance to $2.15 to $2.35. The company also anticipates delivering at least $4 billion in net cost savings by the end of 2024 from its previously announced cost realignment program.

These positive financial results come amid a challenging landscape, particularly with declining revenue from Pfizer’s COVID-19 products, Comirnaty and Paxlovid. Despite this, the company’s non-COVID products saw operational growth, with strong performances from Eliquis and other key offerings. Albert Bourla, CEO of Pfizer, emphasized the robust performance of their non-COVID product portfolio, highlighting increased revenue from recent commercial launches and acquired products.

Now, with Pfizer’s recent financials setting the stage, let’s delve into the charts to analyze whether the company’s stock can break above the $30 mark and sustain its resurgence.

The support level that has stood the test of time

One look at Pfizer’s long-term weekly chart and it becomes apparent how $25 has been a rock-solid support for the stock for more than 10 years now, including during the COVID crash. This time around too, the stock found support near that level as it fell to its 52-week low of $25.20 on 26th April.

PFE chart by TradingView

Since releasing its Q1 numbers the stock bounced back more than 10% from that level, which must offer a glimmer of hope to Pfizer’s existing shareholders. But, apart from that, it also offers a low-risk entry to investors who are bullish on the stock. They can go long at current levels near $28, keeping a stop loss at $25.

If the stock shoots up from here they have a lot to gain while risking only 10-12% on this investment.

Needs to cross near-term resistance levels for sustained upmove

On the short-term, 4-hourly, charts Pfizer’s stock looks exceptionally strong right now with all trend indicators deep in the green. However, the stock faces resistance in close proximity. Since the start of the year, it has failed twice to go above $28.8. Moreover, the 61.8% retracement of the fall from $34 to $25.2 also falls at $28.56.

PFE chart by TradingView

For traders who are bullish on the stock, ideally, they should wait for it to close above $28.8 for a day to take long positions. If it manages to do that, they can keep a stop loss at $26.94 and ride it all the way up to $34.

Traders who are bearish on the stock have a low-risk entry here. They can short the stock at current levels at $28 while keeping a stop loss a few cents above $28.8. If the stock starts falling, they can book profits near $25.5.

The post Pfizer’s next move: Can it break above $30? appeared first on Invezz

You May Also Like

Editor's Pick

In Risky Business: Why Insurance Markets Fail and What to Do About It (Yale University Press, 2023), economists Liran Einav (Stanford), Amy Finkelstein (MIT),...

Editor's Pick

If you haven’t been following the “Twitter Files” saga, the gist of it is that the US federal government routinely pressured pre-Musk Twitter, and...

Editor's Pick

For years the North Korean playbook was obvious to the world. The Democratic People’s Republic of Korea wanted to be the center of attention....

Editor's Pick

On April 23, 1985, the Coca-Cola Company made one of the biggest mistakes in American business history: it changed the formula for Coca-Cola. Outraged...



Disclaimer: Questofprogress.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2023 Questofprogress.com