Pfizer Inc (PFE)

Opportunity for Pfizer and J&J are solid. You give up some appreciation when you select a stock with higher yield. However, total return is the most important. There is more diversification with JNJ with medical supplies. Pfizer's partnership with BioNtech is positive. There is renewed chatter about drug price controls. Both offer good prospective.

They report Tuesday. Despite a successful Covid drug, the stock has done nothing because they have a slew of patents about to expire. That said, it's a fine stock with good managers and a safe dividend yield. You could do a lot worse. You would wait before the report.

Not overly bullish on healthcare as a whole, as its growth may be less attractive. Likes medical devices, with a built-in backlog due to Covid. He owns SYK. There should be a significant pickup in procedures over the next 2 years. SYK has strong earnings growth, near a 1-year high. Also look at IHI, the medical devices ETF, packed with companies leading the healthcare sector.

As a general comment, the margins on the vaccines are not great by design. Their revenues in 2021 will grow quite smartly. The company has been stuck in the mud for some time. There will be 10% revenue growth. However, he fears it will be a one off. There is not a lot of opportunity for top line growth. There has been consolidation in the space to cut costs. Biopharma space is more positive, like Abbvie.

PFE vs. NVAX He'd absolutely go with PFE. Investors have been chasing growthy parts of the market and ignoring the stable areas. Vaccines don't move the needle for PFE the way they do for the others. A great long-term investment if you think rates will stay lower. Mature, decent balance sheet, good valuation.

He likes it. It is a way to play the vaccines. He has had MRNA-Q in the portfolio for a while. The growth of vaccines will be with us for some time. He feels the growth is there. He prefers to play the group through an ETF like XBI-T. You are going to see more money spent in vaccinations and they will be with us for a long, long time.

They're not in warp speed now, given the problems in vaccine distribution in various states. Pfizer's problem is that it isn't innovative like Eli Lilly or Bristol-Myers.

An area that's started to act better recently. Well managed. But doesn't understand what the catalysts are. Doesn't find it compelling. Consider the picks and shovels instead, like Agilent or Danaher, who benefit from growth in everyone's pipeline.