Best
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
Best Growth Stock Analysis as of 16 December 2023
NYSE: PFE (Pfizer Inc. )
- Pfizer Inc. is a global biopharmaceutical company engaged in the discovery, development, manufacturing, and sale of medicines and vaccines across various therapeutic areas, including cardiovascular, infectious diseases, and women’s health.
- The company’s product portfolio includes well-known brands such as Eliquis, Prevnar, and Comirnaty, with a focus on addressing unmet medical needs, including COVID-19 prevention and treatment through vaccines.
- It caters to a broad range of clients, including wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, individual provider offices, retail pharmacies, and integrated delivery systems, as well as disease control and prevention centers.
- PFE stock becomes appealing at this valuation when Pfizer’s management demonstrates business stability without additional impacts from declines in Covid drug sales.
- The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Myovant Sciences Ltd.; Merck KGaA; Valneva SE; BioNTech SE; and Arvinas, Inc.
- Pfizer Inc., founded in 1849, has its headquarters situated in the vibrant city of New York, offering a rich history and a contemporary presence.
- Top Shareholdings of Pfizer Inc. (PFE):
| Holder | Shares | Date Reported | % Out | Value |
|---|---|---|---|---|
| Vanguard Group Inc | 506,727,929 | Sep 29, 2023 | 8.97% | 13,494,164,324 |
| Blackrock Inc. | 438,917,681 | Sep 29, 2023 | 7.77% | 11,688,377,476 |
| State Street Corporation | 282,695,938 | Sep 29, 2023 | 5.01% | 7,528,192,591 |
| Wellington Management Group, LLP | 228,110,744 | Sep 29, 2023 | 4.04% | 6,074,588,921 |
| Capital World Investors | 182,192,282 | Sep 29, 2023 | 3.23% | 4,851,780,316 |
| Geode Capital Management, LLC | 107,085,824 | Sep 29, 2023 | 1.90% | 2,851,695,403 |
| Charles Schwab Investment Management, Inc. | 95,772,746 | Sep 29, 2023 | 1.70% | 2,550,428,145 |
| Morgan Stanley | 84,927,802 | Sep 29, 2023 | 1.50% | 2,261,627,295 |
| Northern Trust Corporation | 63,112,294 | Sep 29, 2023 | 1.12% | 1,680,680,336 |
| Norges Bank Investment Management | 61,484,622 | Dec 30, 2022 | 1.09% | 1,637,335,432 |
What we think are PROs of Pfizer Inc. (PFE) :
- Pfizer stock yields almost 6.50%, easily the highest in the last 5 years at least.
- Such companies invest heavily in research and development to develop new products and solutions, staying competitive and meeting evolving customer needs.
- Pfizer stock is trading at a favorable valuation compared to its peers. This positions it as an appealing long-term investment, offering a compelling 5.7% dividend yield.
- Pfizer anticipates a significant increase in earnings per share (EPS) to around $2.55 next year, a substantial rise from the projected $1.55 in 2023.
- Over the long term, analysts anticipate Pfizer’s growth to range between 4% and 5% per year, aligning with Moody’s projection for the entire industry to experience a 4% annual earnings growth.
What we think the RISKs are in Pfizer Inc. (PFE):
- Pfizer’s long-term growth prospects are slightly better than the industry average, though it is growing 6X slower than Eli Lilly, which is powered by obesity drugs.
- Pfizer appears to lag behind in the competition to introduce a new class of weight loss drugs, dissuading investors seeking healthcare sector exposure from considering the stock.
- Amidst the broader market surge to record highs, Pfizer’s stock has been experiencing its own isolated challenges and struggles.
- Evolving healthcare policies, both domestically and internationally, may impact Pfizer’s operations and financial performance.
FUNDAMENTALS:
Dividend (Yield) = 6.31% ($1.68)
Market Cap. = 150.36B
Beta = 0.56
P/E Ratio = 17.17
52 week Range = 25.76 – 52.16
Revenue = 68.54 B
EPS = 1.55
- Technicals:
– This chart is on the Monthly candle time frame. So, make a view for the longer term.
– Price is trading at the strong support area and it will bounce soon from this levels towards 45.
– Trading too far from the EMA levels and it will try to touch the EMA soon.
– If it falls below then the price will be more attractive near 20 levels.
– All circles shows the last support levels and the price will give a bounce towards higher levels.
– The current support zone also acted as a resistance zone earlier in 2006.
– RSI is trading in the oversold zone which is below 30 and it will give a good bounce to higher levels upto 70-80.
Entry: 26
Target: 44 / 60 / 85
Stoploss: 20
Our Final Thought:
Investors are cautioned that the impact of Covid on Pfizer isn’t over, as reflected in the stock hitting new lows with projections of $8 billion in Covid drug revenues. It’s advisable to avoid Pfizer until there’s clarity after the Covid business shakeout. Future interest may depend on Pfizer sustaining 3-5% growth in non-Covid drugs.
I anticipate a potential turnaround for Pfizer Inc. stock in 2024, with the recent dividend increase sending a strong signal that despite the stock’s challenges, the underlying business remains robust.
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
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