
NYSE:PFE
This summary was created by AI, based on 23 opinions in the last 12 months.
Pfizer Inc. (PFE) is currently facing challenges following its pandemic-driven peak during which it surged due to COVID-19 vaccine sales. Experts have pointed out a lack of earnings momentum and concerns over a patent cliff, as key drugs have come off patent and the company needs to innovate to develop new blockbuster drugs. Despite these challenges, many analysts emphasize the attractive dividend yield, which remains around 6-8%. The company is pivoting towards growth areas such as obesity and oncology, and while there's a general belief that PFE is under pressure, patience from investors could yield positive results. Several insights indicate that while it may not attract immediate growth, the company’s efforts in acquisitions and drug development could eventually pay off, given time.
Pfizer vs. JNJ
That just bought a company, and he immediately thought of the 2008 Wyeth acquisition (at the top of that cycle), and right after shares plunged. Pfizer's timing has not improved. Better to buy JNJ which is doing spin-offs that should benefit the company. JNJ is well-managed and regularly raises its dividend.
Prefers ABBV. Main overhang to PFE is what happens to the vaccine franchise now that we're on the other side of Covid? PFE will need other engines, it's a show-me story. ABBV is a leader in immunology. Humira is coming off patent, which will compress earnings, but that's well-known by the market. Its pipeline will fill the gap, plus Botox business.
Good cash flow and pays a 3.7x dividend. Cheap at 12x PE. Good cardio drug in the pipeline, looking promising. Shares are down lately because of a general rotation and society is getting indifferent to Covid and vaccines. Management sees 7-9% revenue growth outside Covid vaccines. Strong balance sheet. Offers defence and offence.
Good dividend. Growth rate is pretty negative, but improves from 2023-2025 at close to 14% and 9.5x 2025. At cheap enough levels to start buying. Like the Dogs of the Dow theory. Pan for gold when a name's being ignored, and this is one of those.