Opinions Ross Healy
Pfizer IncPFECOMMENTSep 01, 2017
Ross HealyStock price when the opinion was issued
As of Jun 04, 2026. Market Open.
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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.
Wasted $$ after the pandemic. Now refocused. Blockbuster drugs are tapped out, needs a new one. They will find one, and you could make a lot of money.
Meanwhile, you collect the yield of 7% (which is probably good for the next 3 years). If they don't find a monster drug by then, dividend will probably be cut. He's taking the risk.
Bruce Murray
It over-earned during Covid which was not sustainable. It is trying to make up for lost revenue now. It is a high quality company but needs a near term catalyst. Its pipeline investments will take a while. Dividend yield is attractive. Look for more attractive health care companies with both dividend and growth opportunities.
Trading at 8-9x PE. Problem (as for many pharma companies) is that the drugs that make the most amount of $$ are social drugs (Prozac, weight loss) rather than drugs that solve the actual problem (each cancer drug is very niche). Historically, traded at high multiples because people thought they were growth companies; but pharma is not as growthy as people thought. Yield is 6%.
He owns NVO and LLY, and those are his preferences. Drugs with these two will generate lots of money over the next few years.
PFE is very cheap at 8X earnings with a 6.78% dividend. But it has been cheap for a while. It still has uncertainty over Covid revenue, and its full year guidance raise (2.5%) was not so impressive. EPS is still expected to fall marginally in 2026 ($3.11 to $3.00). With lower interest rates ahead (probably) and a possible economic slowdown (always possible) and possible sector rotation, there will come a time when the stock performs much better. We would of course like to see higher growth. For patient investors, we think it is buyable, but we would stress the need for patience here. The government push towards lower drug prices may keep sentiment negative for a longer period of time.
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Pays a 6.9% dividend. The Covid vaccine days are long gone, so shares have been stuck around $25 for months. So, you still get a decent return from the dividend. Pfizer has been buying companies in recent companies, like Seagen, so they can build a powerful drug pipeline to offsets patent expirations.
This is a company where earnings forecasts have basically flat lined for about 10 years. Therefore, his FMV calculation has also flatlined and hasn’t really gone anywhere. When those things happen to stocks, the market says “forget about it”, and tend to sell off, which could give you some good opportunities to buy. They will then take a little run and fluctuate up and down around the FMV calculation. This stock is about there now, kind of at the midpoint of its valuation. The highs and lows are $27 and $38, and the stock is threading the needle. If it fell back to $27-$28, he would love to buy some for a trade. If it went to $38, he would sell it Short. This is not a “Buy and Hold” strategy, because earnings haven’t gone anywhere for 10 years, which also means the BV hasn’t gone anywhere. You want to start where the balance sheet is rising steadily, so that if you are standing still, the values are rising underneath you. However, if the values are not rising, and the balance sheet is flat lining, you are not getting richer just by standing still.