Opinions Stuart Hinshelwood
Pfizer IncPFEBUYJul 12, 2013
Stuart HinshelwoodStock price when the opinion was issued
As of Oct 23, 2026. Market Open.
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Likes healthcare in general, and especially pharma and biotech. He's focused on AI adopters, rather than AI builders. Healthcare fits right in that wheelhouse.
His team wants to buy the strongest company in a sector, not a weakling that's getting better. Activist is trying to shake things up. This name has had a rough go, with more debt. Not as much FCF as peers. Good dividend, but he prefers growth to just a high level. You'll do "OK".
See his Top Picks.
He runs a concentrated portfolio, which includes this name. Why? Because it has properties that are the exact opposite of AI. Gives you great diversification right now, when people are rebalancing away from AI.
Cheap at 11x PE for 2028. Still dealing with missteps after Covid. Very strong oncology pipeline, among others. Very good cost controls. Looking at obesity. Look how MRK based and then took off; PFE is similar. A good Dog of the Dow to own, and watch over the next 5 years. Yield is 6%.
Greg Newman
Pharma and biotech are seeing better leadership in the market. Partly because these sectors are going to be big implementers of AI, and the sector was out of favour for quite some time. They tend to be pretty big cash generators.
Problem is very low growth. Estimates have not been going higher. Stock's rallying on the back of the sector getting better. But he's a big fan of focusing on the leaders in a sector. You won't get hurt with PFE, but he'd definitely lean toward LLY, which he owns. Yield is 6%.
Likes it. The one thing that gives him pause is that it's been a laggard compared to other names. In sideways consolidation, trying to break out. Doesn't mind nibbling here. If we get above $30 or so, that would complete the breakout pattern and you could add more in size.
Likes the 4.5-5% dividend you get paid to wait. As well, late in the cycle is when people get defensive. This is one of those beautiful, defensive, boring stocks. He'd definitely buy.
He gave up and sold it a year or so ago. Their drugs face a patent cliff. Developing drugs is risky and expensive. They have a lot of recurring revenue and will likely develop a blockbuster drug, but will it cover the patent cliff? They carry lots of debt from buying companies constantly (they have to).
Pays over a 6% dividend. They used to have the big drugs in the world, and the Covid high is done, but their drugs have come off patent. They need to make another blockbuster drug. Hopes they will.
Bruce MurrayTrying to get into obesity. Everyone's worried about the pipeline cliff. He likes it. Getting paid a 7-8% dividend, trades 10.8x, with a good management team, pivoting toward obesity and oncology. MRK had a similar drop, and turned out to be a really good buy.
Be long, as a value play.
Attractive dividend. More of a marketing engine (and it's been really successful) than a drug development company. Once that Iran conflict trade comes off, defensives will be likely recipients. If you own, he probably wouldn't sell here; keep collecting the dividend, and perhaps sell later on strength.
Not everything in your portfolio will be going gangbusters at all times. Leadership rotates and takes turns.
His top pick in healthcare stocks. Really likes the large-cap pharmaceutical space. These are very low growth vehicles, 1%-3%. Thinks the stock can still continue to work. They are on the cusp of a new drug and this is what is really going to drive this stock. Relatively low payout ratio and a good dividend yield and they are no longer relying on promotions, they are actually doing some real R&D. Pipeline is fairly robust and it is increasingly going to move outside of North America. Trading at about 12X forward earnings, but the market is trading at 15X.