Pfizer revealed strong Q1 earnings
What happened?
Pfizer, a huge pharmaceutical company and one of the vaccine makers, has published better-than-expected earnings results for the first quarter of 2021.
The market forecast was 0.79 as you can see in the picture above. The actual numbers significantly surpassed the expected level. In comparison, one year ago, Pfizer's earnings were 0.60 per share.
Vaccine-making is likely to bring Pfizer even more revenue in the second quarter as the company will produce and deliver 1.6 billion in 2021 due to the signed contracts. Pfizer and its partner BioNTech are planning to get the full FDA approval for their Covid-19 vaccine by the end of May. Moreover, the FDA may give a green light for Pfizer to vaccinate children aged 12-15 already next week, according to the New York Times.
Tech analysis
On the daily chart, the RSI indicator went above the 70.00 level, signaling the stock is overbought. Therefore, after a short spike (probably above $40.00) due to the positive earnings, Pfizer may correct down in the short term. If you prefer taking positions for a long period (a few weeks or a month), you shouldn’t be afraid of this short sell-off as Pfizer is one of the leading vaccine producers and a credible pharma company, thus in the long term, it’s likely to climb up further. However, if you a day trader, keep an eye on the stock as it may reverse down. Don’t forget that FBS traders can open both buy and sell orders trading stocks. Therefore, use the possible sale to your advantage. If it falls, it will be supported by the recent low of $38.40 and the 200-day moving average of $37.00, which it’s unlikely to cross on the first try.
