After Pfizer Earnings, I've Got a New Price Target

Pfizer PFE reported its second-quarter results Tuesday morning. The pharma giant posted non-GAAP EPS of $0.60 which beat analysts' estimates by $0.14, and revenue of $13.28 billion, which beat by $260 million. The company also raised their 2024 guidance and unveiled cost cuts.

One commentator noted that it is the first quarter with top-line growth since Q4 2022.

Let's go check on the charts and come up with a game plan for the stock.

In the daily bar chart of PFE, below, I can see a positive chart leading up to Tuesday's earnings announcement. Prices are trading above the rising 50-day moving average line and the bottoming 200-day line. 

The On-Balance-Volume (OBV) line shows strength since December and confirms the price gains we have seen the past year. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.

In the weekly Japanese candlestick chart of PFE, below, I can see a promising-looking chart. The shares made a long decline and then began to bottom in late 2023. Prices have rallied above the 40-week moving average line. The 40-week line is just now turning positive. 

The OBV line has been moving higher since the beginning of 2024. The MACD oscillator is now crossing the zero line for an outright buy signal.

In this daily Point and Figure chart of PFE, below, I can see a potential upside price target in the $40 area.

In this weekly Point and Figure chart of PFE, below, I can see a price target of $40, just like the daily chart above.

Bottom-line strategy: In my July 11 update on PFE I wrote that "Step by step the charts of PFE continue to improve. Traders could soon get a trade at $29.81 or higher as my signal to go long." 

Traders should be long PFE. Use a stop at $28. The $40 area is my price target for now.

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