NYSE:PFE

Pfizer Inc (PFE)

30.03
-0.39 (1.28%)
as of Oct 23, 2026, 8:00:00 pm Market Closed.
585 watching
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DON'T BUY
The ethical drug companies continue to have a very difficult time. You are seeing a classic compression of the price/earnings multiple. The growth rate of these companies has gone from 25% growth to almost 0% growth in the last 3/4 years.
WAIT
There's a possibility for it to go to $19.65 at which time he will buy more. It's in a bottoming process. Looking for the new earnings estimates to come in during the next few weeks. His model price is $36 which is a 51% differential.
DON'T BUY
Have too many suits hanging over him for his tastes. Doesn't like a sector where there's a lot of potential for a lot of nasty surprises.
BUY
Doesn't feel the FDA hasn't done a good job, but that is changing. Feels the pharmaceutical industry's pipeline is being valued at a very low multiple. At one of the cheapest levels in the last 10 years. Yields about 2.5/3%. Throws off tons of free cash flow. A long term story.
DON'T BUY
Drug stars such as Pfizer (PFE-N) Merck (MRK-N), etc. are attractively valued but are clearly out of favour. They have great long term track records and are in strong financial positions, however, there is a lack of predictability regarding the science. Doesn't like the cash flow dynamics where they spend billions up front with no sure win ahead. Litigation risks.
BUY
Still likes and is a believer in this company. His model price is 50% above the current price, but doesn't know when that value will be recognized.
DON'T BUY
No advantage to be in this stock. The whole drug area has changed in the last few years and they are not as strong as they once were. The market seems to be moving more to generics.
TOP PICK
His model price is $37.65, an 46% differential.
DON'T BUY
Very cheap on the numbers, but they have a patent issue on their largest drug, Lippitor. If they lost Lippitor, you would be looking at a stock below $20 overnight. There's a lot of risk in the name.
BUY
Have recently added this to his fund. Good free cash flow, strong balance sheet. There is some risk right now with their Lipitor drug. A group in India is making a generic version.
HOLD
Have done a lot of restructuring. Will cut their costs which will help. Part of the problem in the pharmaceutical industry has been the poor leadership in the FDA. A cheap stock and you're getting paid a 3.5% yield. Trades at a very low multiple.
BUY
It's in a big trading range of $25/29. Don't let it go below the low of $24. Hopefully it will break up through the trend line. You should be in this for at least 2 years.
BUY
Has a model price of $38.43.
DON'T BUY
They beat the numbers today. Numbers are pretty low. They are taking costs out. The problems with these stocks, which are all innovation dependent, is essentially depletion through generics.
BUY
Prefers the US health care stocks as they are much larger and much more seasoned. The big pharma has been a very difficult area. This one has been under a bit of a cloud, but it's cheap on an earnings basis.
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