Pfizer (PFE) – Get report On Tuesday it was receiving a solid boost, more than 4% after the company’s better-than-expected earnings report.
The company reported second-quarter earnings of 78 cents a share, beating estimates by 12 cents. Revenue of $ 11.8 billion sank 11% year-over-year, but exceeded estimates by $ 250 million.
Even better, the company’s year-round guidance was ahead of expectations.
The action has been quite interesting in the Pfizer stock. On the one hand, stocks hit in June, dropping nearly 20% in one month. However, positive news about his coronavirus treatment helped boost Pfizer, sending him above June highs.
Of course, the boost in other coronavirus plays has also helped fuel the movement, with Moderna (MRNA) – Get report, Johnson and Johnson (JNJ) – Get report and others gathering.
It has been a volatile journey for what is not usually a volatile stock. Let’s see where the stock can go now.
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Pfizer Stock Trading
Pfizer weekly stock chart.
Graphic courtesy of Stockcharts.com
As Pfizer searches for a possible weekly turnover by clearing last week’s high, notice how it is also clearing a multi-year downtrend mark (blue line).
If the stock can build on this momentum, it could open further up the name. That’s particularly true with its Covid-19 catalyst, a better-than-expected guide, and a 4% dividend yield.
Pfizer daily stock chart.
Graphic courtesy of Stockcharts.com
The daily chart does a better job of emphasizing strength at Pfizer for the past five weeks or so.
Before earnings, the shares rose to $ 38.50, which was resistance in April and May. Pfizer’s shares struggled at this level and fell for three consecutive sessions. Now advancing through it, the bulls are turning their attention higher.
Specifically, they are looking at last week’s high at $ 39.42, followed by the 2020 high at $ 40.12. If stocks can beat the latter, new highs are on the table, potentially in the $ 42 to $ 43 area.
On the downside, see that Pfizer has the $ 38.50 mark. It could then send shares in the mid-$ 30s. For now, the setup seems bullish, especially if it can rotate above the weekly highs and 2020, respectively.
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