Shares of pharmaceutical company Pfizer Inc (PFE, Financial) dropped on Tuesday after the company reported its fourth quarter with weaker-than-expected outlook for 2015.
Pfizer reported its fourth-quarter earnings of $0.54 per share beating estimate by $0.01. Meanwhile sales came in at $13.12 billion to top the consensus. Also on the positive note Pfizer bought back $1.2 billion worth of PFE stocks.
But the issue came when Pfizer projected 2015 earnings to come in the range of $2-2.10 on revenue of $44.5 billion to $46.5 billion.
Looking at the weekly chart, I found that, since spring 2013, Pfizer stock has found itself largely in a big picture sideways motion whereby it consolidated in a 2012 rally. After revisiting in the lower end of October 2014, Pfizer has since rallied sharply and worked its way back to the upper range.
On the daily chart, PFE stock has worked its way higher in a steady way during the past couple of months, and since early January, Pfizer has consolidated in a tight range near its March 2014 highs.
The bears will point out that the stock has rejected a breakout attempt twice in recent days — once on Jan. 21 and again on Jan. 27, after the Pfizer earnings report. However, PFE stock still is consolidating in a tight fashion at these highs, and odds favor an eventual break higher.
Active traders and investors could look out for a daily close above the $33.15 area, which may then lift PFE stock into the $34.50 area as a next upside target.
Disclosure: I have no relation with the above mentioned company and i don't get any pay for writing this article from the company. I have no plan to invest in the stock for next 72 hours.
