2664.45 -20.39 (-0.77%) Sell

Search for alternative investments is on for PFIZER investors as it underperforms

13 min read

PFIZER LTD performed worse than the broader market on Friday. It returned -0.77% to close at 2664.45. It is currently trading -28% below it's 52 week high of 3711.9.

[Themes containing PFIZER]

PFIZER is currently in a down trend. Over the last three months 2 bearish signals have generated a profit of +0.47% for investors.


PFIZER has been underperforming the NIFTY-50 index in recent time, after having outperformed till 11 Sep, 2018. Over the last 3 years and 1 month, PFIZER underperformed the NIFTY-50 index on 53% days.

During the last three months PFIZER was mostly loss making and delivered on average -0.07% per day. It's best return during this period (of +2.86%) was on Wednesday, 24 Oct, 2018. While it's worst loss in the same period (of -2.51%) was on Monday, 14 Jan, 2019. There was initially a bullish trend during this period which started on 23 Oct, 2018 and went on till 26 Oct, 2018. The bullish trend returned +6.57% to investors. This was followed by a bearish trend that started on 22 Nov, 2018 and ended on 28 Nov, 2018. This bearish trend lost -2.28% of investor capital.

On monthly basis, PFIZER delivered profits and losses in equal number of months. PFIZER delivered profits in more months than NIFTY-50 index. PFIZER significantly outperformed NIFTY-50 index in Aug 2018, when it returned +36.53% compared to +6.56% returned by NIFTY-50 index during it's best month in the last one year - Jul 2018. PFIZER had a longer winning streak of profitable months than NIFTY-50 index. It went up in 5 straight months (from Apr 2018 to Aug 2018) during which period it delivered +58.65%. It is interesting to note that both PFIZER and NIFTY-50 index significantly outperform during months when quarterly/annual results are announced.

Wealth is not his that has it, but his that enjoys it.
-- Benjamin Franklin

PFIZER is becoming less volatile overall. In comparison, the NIFTY-50 index is seeing a fall in volatility. During the last three months, there was a significant fall in PFIZER's volatility from 19 Oct, 2018 to 16 Jan, 2019. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that PFIZER has significant negative skewness in it's return distribution. This indicates that PFIZER is very risky for short-term investment and can significantly underperform for long durations.

NIFTY-50 index has more chance of extreme outcomes than PFIZER. Therefore, NIFTY-50 must receive a lower allocation than PFIZER in your portfolio. NIFTY-50 index usually has shorter drawdown period than PFIZER.

On a general note (since you are interested in PFIZER), VINATIORGA is a small cap that deserves to be closely tracked for investment opportunities.

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