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.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
PFE sees MACD Histogram crosses below signal line
PFE saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 04, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 43 instances where the indicator turned negative. In 27 of the 43 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 63%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for PFE moved out of overbought territory on September 03, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 26 similar instances where the indicator moved out of overbought territory. In 14 of the 26 cases, the stock moved lower in the following days. This puts the odds of a move lower at 54%.
The Momentum Indicator moved below the 0 level on September 08, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PFE as a result. In 51 of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 59%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 56%.
PFE broke above its upper Bollinger Band on August 19, 2026. 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.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 50-day moving average for PFE moved above the 200-day moving average on August 27, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +0.73% 3-day Advance, the price is estimated to grow further. Considering data from situations where PFE advanced for three days, in 149 of 276 cases, the price rose further within the following month. The odds of a continued upward trend are 54%.
The Aroon Indicator entered an Uptrend today. In 98 of 194 cases where PFE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 51%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 5 (best 1 - 100 worst), pointing to outstanding 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.
The Tickeron Valuation Rating of 17 (best 1 - 100 worst) indicates that the company is slightly 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 (1.850) is normal, around the industry mean (19.050). P/E Ratio (36.395) is within average values for comparable stocks, (34.258). Projected Growth (PEG Ratio) (12.652) is also within normal values, averaging (5.614). PFE's Dividend Yield (0.062) is considerably higher than the industry average of (0.025). P/S Ratio (2.469) is also within normal values, averaging (4.033).
The Tickeron Price Growth Rating for this company is 46 (best 1 - 100 worst), indicating steady price growth. PFE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 83 (best 1 - 100 worst), indicating weak sales and an unprofitable 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 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PFE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 64, placing this stock worse than average.
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General Information
a manufacturer of vaccines and injectable biologic medicines
Industry PharmaceuticalsMajor
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