Opinions Ross Healy
Pfizer IncPFECOMMENTSep 01, 2017
Ross HealyStock price when the opinion was issued
As of Sep 14, 2026. Market Open.
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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.
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.
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.