Pfizer Inc (PFE-N)

It reports Tuesday. Their anti-cancer drugs still haven't broken up to justify the cost of acquiring them. Good news would pop shares up. Little downside now.

It has over paid for some M&A. It is a deep value play but needs a catalyst. It has had some management change but recovery is not part of their investment style. They sold about a year and a half ago.

Market's been tough on it. Investing $2B a year on R&D, made some acquisitions. Lots in the pipeline is up in the air. Stock will pop eventually back to its historical $40-45, and then he'll probably cash in. In his income fund, with the yield at 6%.

It's too low to sell. Collect the dividend and see if we get good news about the Seagen acquisition.

If he's right about a correction in 2025, money managers will rotate into defensive areas like staples, utilities, healthcare and REITs. Their chart was in a big downtrend in recent years. PFE's chart has a double bottom this year. Relative strength is moving up. Also, volumes has popped around $25 (trough). The risk/reward is good. You're paid 6.5% to wait, too. $25 is big technical support.

Acquisitions in oncology weren't enough for the stock. A long-term play. Slightly disappointing on the year, but oncology segment will continue to do well going forward.

Despite buying a bunch of mega-companies, it remains cheaper than 30 years ago. But it has totally failed to deliver shareholder value. The dividend is safe. 

Valuation of 10x forward PE. People are missing that they took the windfall from Covid and have redeployed it into acquiring assets, mainly in oncology drugs. We should start to see the growth from that spending in the next couple of years. Could get them to start growing again. Meanwhile, vaccines are still a core position. Yield is 6.5%.

Downside support, upside potential, a bit of earnings growth, low valuation.

A few weeks ago, they reported great earnings, but shares were down because the Covid vaccine drove earnings. Today, shares are down another 5-6%. She added shares a few weeks ago, but is holding now.

Excellent company with strong pipeline of new projects. Valuation has seen a new low which makes a good time to buy. Vaccine hesitation in new Trump administration not a concern. Dividend very safe - provides margin for investors. 

Owns share in the income growth fund. Very stable and safe dividend. Current share price is very cheap. Strong R&D pipeline. Expecting company to continue earnings growth. Would recommend buying and holding. 

Their success during Covid, with a big sales spike, hurt them after the pandemic. They should be more efficient, namely their return on invested capital. He prefers Merck for its better performance.

With a 5.7% yield, certainly many investors will like what they see as far as income goes from PFE. The company also has a fairly decent history of raising dividends. In 2014 it was 26 cents, it is 42 cents now. As interest rates decline, its dividend may become more attractive to investors. The stock is cheap at 11X earnings, and now up 2% YTD. Our value trap comment mostly refers to lack of growth. EPS this year is expected to be $2.61, not much above the levels of nine years ago and well below the Covid peak (2021). That would not be so bad, if not for the fact that debt has nearly doubled as well in the past 10 years. So there has been no growth but still, financial risks have increased here. 
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His pick in the healthcare space. Performance coming into this year not favourable. Value opportunity. Penalized by analysts by lack of takeup in obesity drugs. Buy it for oncology buildout, increased demand there. Solid medium-term outlook.

Many drugs are moving into phase 3 trials, which could be a catalyst, and trades around a cheap 9x PE. They just finished buying Seagen. They have their own weight-loss drug. The dividend is safe, offers 3-5% consistent growth, plus maybe more growth from their drugs. Are cutting costs the rest of the year.