Pfizer (PFE, $42.4) and GSK (GSK, $37.09) Are Merging Consumer Healthcare Units
GlaxoSmithKline (GSK) and Pfizer are merging their consumer healthcare businesses.
The two companies’ over-the-counter/consumer healthcare units generated a combined $12.7 billion in sales last year. After the all-equity merger, GSK will own 68% of the joint venture, while Pfizer will hold the rest. The deal is expected to close in the second half of 2019.
Following the merger, GSK plans to spin off the consumer healthcare segment and list it on a London stock exchange within three years, as it plans to focus more on its pharma business. Expecting to save 500 million pounds (about $632 million) by 2022 from the deal, GSK plans to reinvest up to 25 percent of the cost savings into the company's innovation efforts.
For Pfizer, too, the deal should allow more room for the company to concentrate on its prescription drug business from which it makes most of its revenues.
PFE in downward trend: price dove below 50-day moving average on May 24, 2023
PFE moved below its 50-day moving average on May 24, 2023 date and that indicates a change from an upward trend to a downward trend. In of 43 similar past instances, the stock price decreased further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 59 cases where PFE's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PFE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
PFE broke above its upper Bollinger Band on May 23, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for PFE entered a downward trend on May 23, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where PFE's RSI Indicator exited the oversold zone, of 36 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on May 22, 2023. You may want to consider a long position or call options on PFE as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for PFE just turned positive on May 22, 2023. Looking at past instances where PFE's MACD turned positive, the stock continued to rise in of 42 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PFE advanced for three days, in of 296 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.102) is normal, around the industry mean (6.203). P/E Ratio (7.418) is within average values for comparable stocks, (30.295). Projected Growth (PEG Ratio) (1.110) is also within normal values, averaging (3.531). PFE has a moderately high Dividend Yield (0.043) as compared to the industry average of (0.027). P/S Ratio (2.316) is also within normal values, averaging (4.063).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 59, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. PFE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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Fundamental Analysis Ratings
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