Stock price when the opinion was issued
Valuation of 10x forward PE. People are missing that they took the windfall from Covid and have redeployed it into acquiring assets, mainly in oncology drugs. We should start to see the growth from that spending in the next couple of years. Could get them to start growing again. Meanwhile, vaccines are still a core position. Yield is 6.5%.
Downside support, upside potential, a bit of earnings growth, low valuation.
You'd have thought they'd be hit more by tariffs, as Trump hammers on that many drug components are made overseas. So the market must be thinking tariffs will benefit pharma, to explain why this name is up on such a tremendously down day. Keeping people guessing and on a knife's edge isn't a bug of the current US administration, it's a feature.
His healthcare investments focus on health management like UNH and medical devices.
If he's right about a correction in 2025, money managers will rotate into defensive areas like staples, utilities, healthcare and REITs. Their chart was in a big downtrend in recent years. PFE's chart has a double bottom this year. Relative strength is moving up. Also, volumes has popped around $25 (trough). The risk/reward is good. You're paid 6.5% to wait, too. $25 is big technical support.
(Analysts’ price target is $32.04)