Healthcare is his biggest sector. HC is seeing the classic shift to defensives as inflation peaks. Also, HC trades at only 18x while utilities and staples trade at 21x, so it's the cheapest defensive. He owns Pfizer, UNH and Regeneron.
The entire drug sector hasn't been investable since the 1990s, because governments control drug prices and patent expiries. Pfizer is struggling to replace drugs coming off patent, like their cholesterol drug. It's really tough. It's a defensive sector, so the drug companies will hold up better and offer dividend growth.
(A Top Pick Apr 19/22, Down 3.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PFE has triggered its stop at $48. To remain disciplined we recommend covering the position at this time.
Results highly influenced by Covid vaccine. Earnings might be stagnant going forward. His choice is MRK, reasonable and sustainable multiple of 12x and very good dividend. MRK's major drug is patent-protected until at least 2026, plus great drugs in pipeline.
(A Top Pick Apr 19/22, Up 9.7%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PFE is progressing well. We now recommend trailing up the stop (from $42) to $48.
Diversified business, gold standard. PFE is making acquisitions, building out the pipeline from Covid cashflow wins. Good mRNA franchise, benefits of diversity, plus management team executing on pipeline of acquisitions.
(A Top Pick May 28/20, Up 45%) A defensive. Back then, they were working on the vaccine and luckily theirs was the most effective. He trimmed at $55, but still likes and holds it. The company has in the past struggled to build a pipeline of drugs. This morning they announced they will buy a company that treats migraines. They're spending $11 billion on their pipeline, which is promising. They earned $25 billion revenues in vaccines in 2021. Pays a great dividend. Remains a core holding.
They report Tuesday. They've made a lot of money during the pandemic. He hopes they buy another drug company to make up for looming patent explorations in the coming years. Shares were crushed today. Good yield and trades at 6x earnings, though.
Stockchase Research Editor: Michael O'Reilly PFE has a long pipeline of new drugs focusing on oncology, rare diseases and vaccines, generating over $50 billion in annual sales. It trades at 13x earnings compared to peers at 20x. Latest reported earnings beat expectations by 27% and supports a ROE over 34%. Its dividend is backed by a payout ratio under 40% of cashflow. It is managing its cash reserves conservatively, maintaining a good war chest, while still retiring debt. We would recommend a stop loss at $42.00, looking to achieve $60.50 -- upside potential of 19%. Yield 3.0% (Analysts’ price target is $60.47)
Has done extremely well with Covid solutions. Not inexpensive for its growth rate. A concern for the stock, though not for humanity, is this opportunity will exhaust itself. Not a bad name if Covid will be a chronic situation. All pharma races the patent clock. He'd prefer MRK.
Value and price momentum score well. High ROE, 13x price to earnings. Healthy yield of 3%, very reasonable payout ratio. You can own it through the cycles.
(A Top Pick Sep 24/20, Up 28.9%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with PFE has triggered its stop at $46. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 23%, when combined with the previous recommendation to cover half.
Suffered recently a bit, as shine from Covid has worn off. Great defensive growth name. Likes healthcare in general. Don't sell it to buy LLY, but nothing against LLY. Trades at 6x forward earnings. Great cardio drug that could be a gamechanger, strong pipeline. Yield is 3.5%.
R&D has become much more concentrated. Cashflow windfall being used to expand pipeline. CEO has done exceptional job navigating the vaccine environment. Tuck-in acquisitions. Executing well, deserves the multiple bump. Yield is 3%. (Analysts’ price target is $58.53)
Pfizer Inc is a American stock, trading under the symbol PFE (previously PFE-N on Stockchase) on the New York Stock Exchange (PFE). It is usually referred to as NYSE:PFE or PFE
Is Pfizer Inc a buy or a sell?
27 expert ratings on Pfizer Inc (PFE) in the last 12 months: 11 Buy, 4 Hold, 12 Sell. Latest rating: BUY by Jason Snipe, CIO, Odyssey Capital Advisors on Jul 15, 2022. Read the latest stock experts' ratings for Pfizer Inc.