
NYSE:PFE
This summary was created by AI, based on 29 opinions in the last 12 months.
Pfizer Inc (PFE) is facing significant challenges as it navigates a patent cliff and the subsequent impacts on revenue after its COVID-19 vaccine boom. Many analysts express concerns about the lack of earnings momentum and the uncertain prospects for new blockbuster drugs in its pipeline. Despite these challenges, PFE maintains an attractive dividend yield ranging from 6% to 7% that provides a steady income for shareholders. The company's strategy includes cost-cutting measures and acquiring smaller companies to refill its drug development pipeline. However, the stock typically trades at a low price-to-earnings ratio, indicating a lack of confidence in future growth, with multiple experts suggesting a need for patience and a potential wait for positive catalysts to drive price appreciation.
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.
Would hold shares with ~4% dividend yield.
Believes demand for drugs will continue despite Covid-19 ending.
Demand for healthcare will continue to rise.
Current share price is over sold.
P/E ratio at 6x very attractive.