Pfizer (PFE) closed the most recent trading day at $26.21, moving -0.38% from the previous trading session. This move lagged the S&P 500's daily gain of 1.08%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.41%.The the stock of drugmaker has risen by 2.93% in the past month, leading the Medical sector's gain of 0.21% and the S&P 500's loss of 8.26%.The investment community will be closely monitoring the performance of Pfizer in its forthcoming earnings report. On that day, Pfiz ...

Group 1: Retirement Income and Dividend Stocks - The uncertainty surrounding Social Security's future has led investors to seek passive income through dividend stocks, as funds may run out by 2037, potentially reducing benefits to 76% of current levels [1] - Not all dividend stocks are suitable for retirement income, making careful selection essential [2] Group 2: AbbVie (ABBV) - AbbVie is recognized for its strong portfolio in immunology and oncology, successfully transitioning from its former blockbuster drug, Humira [3] - The company's newer immunology treatments, Skyrizi and Rinvoq, have shown significant growth, with combined sales increasing by 51% and 50% in 2024, and projected to reach $31 billion by 2027, indicating a compound annual growth rate exceeding 20% [4] - AbbVie offers a 3% dividend yield, which is 2.5 times higher than the S&P 500 average of 1.2%, supported by strong cash flow and projected 5% average annual revenue growth through 2029, despite a high payout ratio of 259% [5][6] Group 3: Pfizer (PFE) - Pfizer boasts one of the highest dividend yields among large-cap stocks at 6.6%, supported by a diversified portfolio and global distribution network [8] - The company has a solid foundation for future growth due to its extensive research capabilities and history of successful drug commercialization [9] - Analysts remain optimistic about Pfizer's long-term outlook despite political uncertainties, driven by innovation and an aging global population [10][11] Group 4: Chevron (CVX) - Chevron offers a generous 4.3% dividend yield and has recently increased its dividend by 5%, demonstrating commitment to shareholders [12] - The company's global infrastructure and extensive reserves position it well to benefit from rising energy demand, with a focus on capital discipline and returning cash to shareholders [13] - With a sustainable 67% payout ratio and projected production growth of 6% per year through 2026, Chevron provides a solid foundation for future dividend increases [14][15]

Since my last coverage , Pfizer (NYSE: PFE ) has remained relatively stable, while the S&P 500 declined by 2.25%, a reflection of its defensive attractiveness in a risk-off environment. Its bull case is centered in its core pharma growth, expanding beyond pandemicYiannis Zourmpanos, founder of Yiazou IQ, an AI-driven stock research platform providing all-in-one stock reports. Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accou ...

Core Viewpoint - Pfizer is experiencing a transition phase with declining COVID product sales but growth in non-COVID drugs and new acquisitions, positioning the company for future operational growth [2][3][17]. Sales Performance - Sales of Pfizer's COVID products, Comirnaty and Paxlovid, are projected to decline to approximately $11 billion in 2024 from $56.7 billion in 2022, with similar revenues expected in 2025, excluding one-time benefits [3]. - Non-COVID operational revenues improved by 12% in 2024, surpassing the guidance range of 9-11%, driven by key products and new acquisitions [4]. Growth Drivers - Pfizer's acquisition of Seagen and the performance of its oncology drugs, which generated $3.4 billion in sales in 2024 (up 38% pro forma), are significant contributors to growth [6][7]. - The oncology segment accounts for about 25% of total revenues, with a 26% operational growth in 2024, supported by drugs like Xtandi and Padcev [7]. Stock Performance and Valuation - Pfizer's stock has risen 5.9% over the past three months, although it has declined 9.8% in the last six months, underperforming the industry [1][8]. - The stock is trading at a forward price/earnings ratio of 9.0, lower than the industry average of 17.51 and its own 5-year mean of 11.11, indicating an attractive valuation [10]. Earnings Estimates - The Zacks Consensus Estimate for 2025 earnings has increased from $2.93 to $2.97 per share, while the estimate for 2026 has decreased from $3.04 to $2.99 per share [11]. Future Outlook - Pfizer anticipates continued growth in non-COVID sales and significant cost reductions, aiming for savings of at least $6 billion, which should support profit growth [17]. - The company returned $9.5 billion to shareholders through dividends in 2024, with a dividend yield of around 6.4%, making it appealing for long-term investors [18].

Investment Rating - The investment rating for the pharmaceutical industry is "Outperform the Market" (maintained) [1] Core Insights - The main growth driver remains the launch of innovative products, particularly in the GLP-1 category, with significant revenue increases reported by companies like Eli Lilly and Novo Nordisk [3] - The report highlights the strong performance of key products across various therapeutic areas, including oncology, metabolism, and immunology, with notable sales growth percentages [3] Summary by Sections 01 Overview of Overseas Pharmaceutical Companies Q4 2024 and Annual Performance - Eli Lilly's revenue increased by 32% in 2024, driven by GLP-1 products [3] - Novo Nordisk's sales reached approximately $40.5 billion, a 25% increase, with significant contributions from GLP-1 products [29] - AstraZeneca and Merck also reported strong growth, with revenue increases of 21% and 10% respectively [3] 02 Performance Review of Overseas Pharmaceutical Companies - Eli Lilly's Q4 sales reached $13.5 billion, a 45% increase, with GLP-1 products contributing significantly [18] - Novo Nordisk's GLP-1 products achieved sales of approximately $22.5 billion, with a 20% increase in the diabetes segment [29] - JNJ's pharmaceutical segment reported $14.3 billion in Q4, with oncology products driving growth [40] R&D Investment - The top 15 pharmaceutical companies invested over $150 billion in R&D in 2024, a 7% increase year-on-year, with a research expense ratio of 21.8% [8] Sales Performance in China - Seven overseas pharmaceutical companies reported combined sales of approximately 515 billion RMB in Q4 2024, with a year-on-year growth of 10% [14]

Group 1 - The article is the first in a series of comparative analyses between two pharmaceutical companies, with plans to publish one article each week over the next four weeks [1] Group 2 - Allka Research has over two decades of experience in investment, focusing on uncovering undervalued assets in ETFs, commodities, technology, and pharmaceutical companies [2] - The company aims to simplify investment strategies for both seasoned and novice investors, fostering a community of informed investors [2] - Allka Research seeks to share its insights through Seeking Alpha, contributing analyses and perspectives to empower financial decision-making [2]

Core Viewpoint - The article discusses differing opinions on dividend investing, highlighting a perspective that views dividends as a mere removal of value from a company's share price, while others advocate for the benefits of receiving dividends as a form of income [1]. Group 1: Dividend Investing Perspectives - Some investors believe that dividends do not add value and suggest creating synthetic dividends by selling shares instead [1]. - The article emphasizes the importance of quality blue-chip stocks, BDCs, and REITs for dividend investing [1]. Group 2: Investor Profile - The author identifies as a buy-and-hold investor focused on quality over quantity, aiming to supplement retirement income through dividends within the next 5-7 years [1]. - There is a goal to assist lower and middle-class workers in building investment portfolios of high-quality, dividend-paying companies [1].

If you want to generate significant long-term gains in the stock market, one place to start looking for investments is among the companies that Wall Street isn't all that thrilled with today. In the short term, these may not be good performers, and they may not have looked like great buys in recent months or years. But there can be winners to be found among cheaply valued stocks. The trick is to pick out the diamonds in the rough that have a lot of upside potential in the long run.Verizon Communications (VZ ...

Core Viewpoint - Pfizer is currently undervalued and presents a potential investment opportunity for long-term investors despite recent performance challenges [2][12]. Financial Performance - Pfizer's annual sales peaked at over $100 billion in 2022 but fell by more than 40% in 2023 due to a decline in COVID-19 related sales [3][4]. - In 2024, Pfizer generated $5.7 billion from its COVID medicine Paxlovid, a significant increase from $1.2 billion in 2023, and $5.4 billion from its vaccine Comirnaty, despite a 52% decrease year-over-year [6]. Product Pipeline and Future Growth - Pfizer has expanded its product lineup and pipeline, earning approvals for new products like the RSV vaccine Abrysvo and alopecia areata treatment Litfulo [7]. - The company is conducting over 20 late-stage studies in oncology and anticipates developing several cancer medicines that could generate over $1 billion in annual sales [8]. - Pfizer's pipeline includes 115 candidates across all clinical trial stages, indicating potential for future revenue growth [7][9]. Cost Management - Pfizer aims to achieve net cost savings of $4.5 billion by the end of 2025, building on $4 billion in savings from the previous year, which should positively impact the bottom line [10]. Valuation Metrics - Pfizer's forward price-to-earnings (P/E) ratio is approximately 9, compared to the healthcare industry average of 17.7, suggesting it may be undervalued [11]. - The company offers a dividend yield of 6.5%, making its shares attractive for patient investors [12]. Long-term Outlook - While Pfizer may not see a full recovery in the next six to twelve months, it has the potential to deliver solid returns over the long term, making it a compelling investment at current levels [13].

In my last article about Pfizer Inc. (NYSE: PFE ), I argued that the low price and high dividend might offset the expanding risks. In the meantime, an investment would have returned about 5% and although this does not seem likeMy analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization ...