The company's best days as a top pandemic vaccine supplier might be over, but it still has enough potential to be compelling.It was a rock star during the coronavirus pandemic, but Pfizer (PFE 2.73%) hasn't been the most exciting company in 2024. Its stock has become something of a value play, at least according to one analyst who released a fresh research note based on meetings with company management. He feels the stock has upside potential that's comfortably in the double-digit percentages. Here's why.An ...

KEY TAKEAWAYSPfizer said this weekend that a drug aimed at helping cancer patients losing appetite and muscle mass showed positive results in a Phase 2 trial.The pharma giant said ponsegromab will start late-stage trials next year. The drug aims to treat cancer cachexia, the life-threatening wasting condition that often affects patients with the disease. Pfizer (PFE) said this weekend that a drug aimed at helping cancer patients losing appetite and muscle mass showed positive results in a Phase 2 trial. The ...

Core Viewpoint - Pfizer's high dividend yield of 5.7% is attractive but raises concerns about sustainability due to an alarming payout ratio of 436% [1][4][5] Group 1: Company Overview - Pfizer is a global pharmaceutical leader with over 350 marketed medicines and 113 experimental candidates in clinical trials, operating in more than 200 countries [2] - The company's stock has declined 52% from its three-year high, primarily due to a slump in COVID-19 sales [2] Group 2: Valuation and Market Position - Pfizer's shares are trading at 9.6 times projected earnings for 2026, indicating a significant discount compared to the pharmaceutical sector [3] - The company's high dividend yield and strong market position create a compelling value proposition for long-term investors [3] Group 3: Dividend Sustainability Concerns - The payout ratio of 436% is significantly higher than the typical threshold of 75%, raising alarms about the sustainability of the dividend [4][5] - The average payout ratio among Pfizer's peers is 141%, highlighting the severity of Pfizer's situation [5] Group 4: Management's Commitment and Future Prospects - Pfizer's management has reaffirmed its commitment to maintaining and growing the dividend, supported by a 15-year streak of consecutive increases [6] - A cost-saving plan targeting $4 billion in net savings aims to improve free cash flows and support short-term dividend sustainability [6] - The pipeline includes potential blockbuster cancer drugs that could significantly enhance revenue and earnings, potentially bringing the payout ratio closer to its historical average of around 50% [7] Group 5: Market Sentiment and Investment Consideration - Despite a bearish sentiment reflected in a 14% decline in shares over the past year, management's commitment and promising drug pipeline suggest potential for a turnaround [5][8] - Pfizer's shares are trading at a steep discount relative to many peers, providing a margin of safety for investors [8] - Monitoring the company's financial health and dividend coverage remains crucial for investors considering high-yield opportunities [8]

Pfizer's experimental drug for a common, life-threatening condition that causes cancer patients to lose their appetite and weight showed positive results in a midstage trial, the drugmaker said Saturday. Patients with the condition, called cancer cachexia, who took Pfizer's treatment saw improvements in body weight, muscle mass, quality of life and physical function, according to the drugmaker. The results could pave the way for the drug, a monoclonal antibody called ponsegromab, to become the first treatme ...

Blister packets each containing a dose of PAXLOVID prescription medicine for a patient's Covid-19 ... [+] viral infection are arranged for a photo illustration on September 4, 2024 in Los Angeles, California. (Photo by Patrick T. Fallon / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images)AFP via Getty ImagesGiven its better valuation, we believe that Pfizer stock (NYSE: PFE) is currently a better pick than its industry peer – AbbVie stock . PFE stock trades at a much lower multiple of 11x forward, versu ...

Core Viewpoint - Pfizer (PFE) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks rating upgrade reflects optimism about Pfizer's earnings potential, which is expected to lead to increased buying pressure and a rise in stock price [2]. - Pfizer is projected to earn $2.62 per share for the fiscal year ending December 2024, representing a year-over-year increase of 42.4% [5]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for Pfizer has increased by 12%, indicating a trend of rising earnings estimates [5]. - The correlation between earnings estimate revisions and near-term stock movements is strong, making it beneficial for investors to track these revisions [4]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [4]. - Pfizer's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [7].

They're down but not out, at least not yet.The stock market has been on fire this year, but much of that performance can be attributed to a handful of tech giants that have a disproportionate weight of the S&P 500 and are benefiting from the artificial intelligence (AI) boom. Many other stocks have been doing well, but it's not that hard to find those moving in the opposite direction.Pharmaceutical giant Pfizer (PFE 1.12%) and social media platform Snap (SNAP 1.29%) belong to this group: Both have significa ...

Pfizer (PFE) closed at $29.74 in the latest trading session, marking a +1.11% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.45%. Elsewhere, the Dow saw a downswing of 0.23%, while the tech-heavy Nasdaq appreciated by 0.84%.The drugmaker's stock has climbed by 3.37% in the past month, exceeding the Medical sector's gain of 3.16% and the S&P 500's gain of 2.54%.Analysts and investors alike will be keeping a close eye on the performance of Pfizer in its upcomin ...

no_limit_pictures Intro & Thesis I reinitiated my coverage of Pfizer Inc. (NYSE:PFE) stock at the end of December 2023 with a "Buy" rating, when the stock was trading at $27.86 apiece. Since then, I have published 3 more articles, which, ultimately, have proven effective in terms of relative and absolute performance: PFE's total return outpaced the S&P 500 index (SP500) (SPX) quite meaningfully. The index has remained stagnant, hovering around 0% over the past 3 months, while PFE gave a total return of over ...

Investment Thesis - Pfizer's stock delivered a total return of 6.5% since February, underperforming the broader market's 7.3% return [1] - The company secured FDA approval for its KP.2-adapted COVID-19 vaccine, positioning it well for the 2024-2025 season [1] - Core products like Eliquis, Vyndaqel, and newer oncology therapies, along with Seagen acquisitions, are driving growth [1] - Pfizer is expanding into obesity treatments and oncology through key R&D investments, diversifying its pipeline [1] - Technical indicators suggest potential stock strength, with RSI trending upward and early signs of accumulation in VPT [1][3] Technical Analysis - Pfizer's current stock price of $28.5 aligns with the pessimistic 2024 price target based on the 0.382 Fibonacci level [2] - The average price target of $31 (1.0 Fibonacci level) suggests modest upside, while the optimistic target of $33 (1.618 Fibonacci level) indicates potential for stronger gains [2][3] - RSI at 51.84 indicates neutral market sentiment, but the upward trend suggests potential stock strength [3] - VPT shows signs of upward reversal, indicating possible accumulation [3] - Historical seasonality data suggests stronger performance in October (62% chance of positive returns) and November (70% chance) [4] COVID-19 Vaccine Market - Pfizer's KP.2-adapted COVID-19 vaccine, developed with BioNTech, is FDA-approved for the 2024-2025 season [5][6] - The COVID-19 vaccine market is projected to reach $25.6 billion by 2024, with the US contributing $4.39 billion [7] - Pfizer expects the KP.2 vaccine to capture substantial market share, supported by FDA recommendations [6] - The market faces a compound annual growth rate of -17.64% from 2024 to 2029 [7] Financial Performance - Pfizer's Q2 2024 revenue reached $13.3 billion, marking 3% annual operational growth [8] - Excluding COVID-related products, operational revenue growth was 14% [8] - Adjusted gross margin improved to 79% from 76% last year, driven by a favorable sales mix of non-COVID products [8] - Core products like Eliquis, Vyndaqel, and Xtandi drove revenue growth, with Eliquis capturing a growing share of the oral anticoagulant market [9] - Nurtec experienced a 44% annual increase in global operational revenue [9] Oncology and R&D - Pfizer's oncology segment, bolstered by the Seagen acquisition, is seeing growth with products like Padcev, Xtandi, Lorbrena, and Braftovi-Mektovi [9] - Full FDA approval for Tivdak and positive CHMP opinions for Braftovi-Mektovi and Padcev in Europe are critical milestones [9] - R&D expenses increased by 2% operationally in Q2 2024, with a focus on obesity treatments like danuglipron, an oral GLP-1 receptor agonist [9] - Positive results from the Phase 3 CROWN study of Lorbrena in ALK-positive metastatic non-small cell lung cancer showed 60% of patients living beyond five years without disease progression [9] Manufacturing and Cost Management - Pfizer's Manufacturing Optimization Program aims to deliver $1.5 billion in savings by 2027, with savings expected to start in 2025 [9] - The program focuses on improving operational efficiency and realigning the cost base to hit pre-pandemic operating margins [9] - Fiscal year-end revisions show 20 EPS upward revisions and 16 revenue upward revisions, with only 3 revenue downward revisions [10] Revenue Risks and Market Competition - Pfizer remains partially dependent on COVID-19 products, with Q2 2024 COVID-related sales forecast at $8.5 billion [11] - The COVID-19 vaccine market is increasingly competitive, with companies like Moderna and new entrants developing alternatives [11] - Evolving virus strains and competitor advancements create challenges for sustaining market share [12] - Revenue estimates for December 2024 are $60.99 billion, with annual growth of 4.27%, and a P/S ratio of 2.70 [12] - By December 2025, revenue may reach $63.11 billion, with a forward P/S ratio of 2.60 [12] Long-Term Growth Narrative - Despite near-term challenges from fluctuating COVID-19 demand and market competition, Pfizer's strong core portfolio and strategic pipeline investments present a solid growth narrative in the long term [14]