It reports Tuesday. The street doesn't like it, because of the performance of PFE's Covid vaccines. He disagrees--there's much more to Pfizer than the street thinks.
Healthcare is weak at the start of each year. Pfizer chart shows lower lows and lower highs. Doesn't see a strong seasonal pattern for Pfizer now. Things pick up in May/June for healthcare.
The drug space is a difficult one to be in so he doesn't own stocks in that space. It did a massive business with the vaccine. Now it will have to spend a lot of cash to make acquisitions since the base business for the big pharmaceuticals is flattening.
Stockchase Research Editor: Michael O'Reilly Following on its mRNA success with the COVID vaccine, PFE is advancing an RSV vaccine candidate that stimulated an immune response in pregnant women -- key to reduce RSV infection that impacts 125,000 infants in the US annually. The stock trades at only 9x earnings and 2.7x book. Recently reported earnings support a ROE of 35% and the company has been aggressively retiring debt. We recommend a stop-loss at $35, looking to achieve $55.50 -- upside potential over 22%. Yield 0% (Analysts’ price target is $55.49)
It's been downgraded and shares have gone down. It's cheap enough now. Buy some now and buy more if the dividend rises back to 4% (at 3.6% now). Their pipeline looks promising.
(A Top Pick Jan 12/22, Down 15%) 11x forward PE. Outperforming S&P since early 2021. Healthy drug pipeline. Still sees 30B USD in sales for Covid vaccines and treatment. Defensive and steady growth. Weak relative to market in January, an opportunity. Yield is 3.5%.
Monday they hold an analysts meeting to discuss their drug pipeline. Their biggest problem is that the street thinks there isn't much more to this company than its Covid franchise. Untrue! They've made enough acquisitions and invested in their pipeline to keep making new drugs.
Sell PFE to buy MRK? Likes and owns them both. MRK is more in the immuno oncology and cancer space, whereas PFE is more diversified. Defensive and growth characteristics. MRK hit a new high today. PFE hasn't done as well, but has performed over the last 2 years. Own both for different reasons. May want to trim in early part of next cycle. Yield is 3.3%.
It has always been part of their health care portfolio. It is losing some lustre and interest created by Covid but is still a good health care company with a good dividend. He likes others as well, maybe a bit better.
When you're looking at pharma companies, you want to see the breadth of drugs that are in the pipeline, and any blockbuster drugs in there. You're also looking for dividends. Yield is 3.4%.
Always a wall of worry around drug pricing, but rarely does it have a large impact. He sold this name after record revenues from vaccine news. He likes AZN, which is getting approval after approval. Another one is LLY, focusing on its diabetes and weight loss drug.
Healthcare is his biggest sector. HC is seeing the classic shift to defensives as inflation peaks. Also, HC trades at only 18x while utilities and staples trade at 21x, so it's the cheapest defensive. He owns Pfizer, UNH and Regeneron.
The entire drug sector hasn't been investable since the 1990s, because governments control drug prices and patent expiries. Pfizer is struggling to replace drugs coming off patent, like their cholesterol drug. It's really tough. It's a defensive sector, so the drug companies will hold up better and offer dividend growth.
(A Top Pick Apr 19/22, Down 3.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PFE has triggered its stop at $48. To remain disciplined we recommend covering the position at this time.
Pfizer Inc is a American stock, trading under the symbol PFE (previously PFE-N on Stockchase) on the New York Stock Exchange (PFE). It is usually referred to as NYSE:PFE or PFE
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On 2026-06-11, Pfizer Inc (PFE) stock closed at a price of $26.19.