Valued at a market cap of $164.8 billion, Pfizer Inc. (PFE) discovers, manufactures, distributes, and markets medicines and vaccines in various therapeutic areas, including immunology, oncology, cardiology, endocrinology, and neurology, among others, and is renowned for its Pfizer–BioNTech COVID-19 vaccine. The New York-based company is expected to announce its fiscal Q3 earnings results before the market opens on Tuesday, Oct. 29. 

Ahead of this event, analysts project the biopharmaceutical company to report a profit of $0.62 per share, up 464.7% from a loss of $0.17 per share in the year-ago quarter.  The company has consistently beaten Wall Street's bottom-line estimates in the last four quarters. 

In Q2, the company reported an EPS of $0.60, which surpassed the consensus estimates by 33.3%. The strong performance can be attributed to the company’s cost-cutting measures, improved sales of the COVID-19 antiviral pill named “Paxlovid,” and solid non-covid medication sales.

For fiscal 2024, analysts expect PFE to report an EPS of $2.66, up 44.6% from $1.84 in fiscal 2023. 

Shares of PFE have gained 3% on a YTD basis, significantly underperforming both the S&P 500 Index's ($SPX) 22.4% surge and the Health Care Select Sector SPDR Fund’s (XLV) 13% return over the same period.

On Oct. 10, shares of PFE plunged 2.8% after activist investor Starboard Value accused Pfizer of threatening its two former executives to retract their support, which initially offered to help Starboard's efforts. Starboard Value acquired a $1 billion stake in Pfizer on Oct. 7, and investors showed confidence in the news in hopes of a plausible turnaround with this investment.

On Jul. 30, the stock jumped 2.2% after its Q2 earnings release as, along with its profit, its revenue of $13.28 billion, which increased 2% every year, outpaced the Wall Street estimates of $12.96 billion. The company’s raised full-year 2024 EPS and revenue guidance further bolstered investor confidence. 

Analysts' consensus view on Pfizer’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 21 analysts covering the stock, nine recommend a "Strong Buy," and 12 suggest "Hold." 

This configuration is slightly more bullish than three months ago, with eight analysts suggesting a "Strong Buy." The average analyst price target for PFE is $33.10, indicating a 13.8% potential upside from the current levels.

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