Core Viewpoint - Pfizer is currently undervalued and presents a potential investment opportunity due to its low earnings multiple, attractive dividend yield, and ongoing acquisition strategy [1]. Group 1: Valuation and Financials - Pfizer is trading at a forward price-to-earnings (P/E) multiple of less than 9, significantly lower than the average P/E of nearly 18 for the Health Care Select Sector SPDR Fund, indicating it is a deeply discounted stock [4]. - The company is guiding for revenue between $61 billion and $64 billion for 2025, comparable to the $63.6 billion reported in the previous year, suggesting a modest decline but ongoing investment in growth opportunities [3][4]. Group 2: Dividend Yield - Pfizer's current dividend yield is 6.7%, well above the S&P 500's average yield of 1.4%, making it an attractive option for income investors amid market uncertainties [5]. - In 2024, Pfizer generated free cash flow of $9.8 billion, exceeding the $9.5 billion paid out in dividends, indicating the sustainability of its dividend payments [6]. Group 3: Acquisition Strategy - Pfizer aims to add $25 billion to its top line by 2030 through acquisitions and its pipeline, having already added about $20 billion, with the acquisition of Seagen in 2023 being a significant contributor [7][8]. - The company is exploring more strategic opportunities for modestly sized acquisitions that could enhance its pipeline and help meet revenue targets, potentially alleviating concerns about its business [8]. Group 4: Market Outlook - Despite being a cheap stock for some time, Pfizer's stable financials and potential for meaningful acquisitions suggest significant upside potential, although a rally may take time [9]. - Investors willing to buy shares of Pfizer could see substantial payoffs from both potential share price gains and accumulated dividend income over the years [10].

Core Viewpoint - The healthcare sector is resilient during economic downturns, making it a favorable environment for solid dividend stocks like Pfizer and Bristol Myers Squibb, which are currently undervalued and present excellent investment opportunities [1][2]. Group 1: Pfizer - Pfizer has faced challenges with declining sales from its coronavirus products and older products losing growth potential, but its forward P/E ratio of 8.9 is significantly lower than the healthcare industry's average of 17.2, indicating it is undervalued [3][6]. - The company has expanded its pipeline significantly, with nearly 60 oncology programs, many in late-stage studies, and plans to launch several blockbuster oncology drugs in the coming years [4][5]. - Pfizer's revenue for 2024 is projected at $63.6 billion, a 7% increase from the previous year, and it offers a forward yield of 6.7%, well above the S&P 500 average of 1.3% [5][6]. Group 2: Bristol Myers Squibb - Bristol Myers Squibb has successfully navigated patent cliffs by developing new products, resulting in a 7% revenue increase to $48.3 billion last year [7][8]. - The company has launched new medicines like Reblozyl, which generates over $1 billion in annual sales, and has a deep pipeline with 50 clinical compounds in development [8][10]. - Bristol Myers offers a forward yield of 4.20% and a forward P/E of 8.9, indicating reasonable valuation and a commitment to raising dividends [11][12].

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial .Uncertainty is everywhere. And while the stock market isn't even in correction territory, investors are clearly nervous, as we'reIf all of my articles over the past few weeks had to be summarized by one word, I think it would be "uncertainty."Analyst’s Disclosure: I/we have a be ...

Investor enthusiasm hit a fever pitch following the 2024 election, but took a punch to the gut recently. Market indexes have been falling as investors are beginning to assume President Trump will make good on repeated promises to raise the cost of goods entering the U.S. from the country's largest trading partners through tariffs.The biggest trade war losers to date have been the richly valued tech stocks at the top of the S&P 500 (^GSPC 1.08%) index. All the "Magnificent Seven" stocks finished March 18 dow ...

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 ...

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 ...

Pfizer’s (PFE) stock has risen 5.9% in the past three months. The stock has started to show a consistent increase, with some ups and downs in between, after it took a hammering in the past couple of years due to declining sales of its COVID products with the end of the pandemic.After witnessing possibly its worst slowdown in 2023/2024, the company seems to be gradually making a comeback and entering a transition phase. Its non-COVID drugs and contributions from new and newly acquired products have started t ...

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]

When it comes to dividend investing, some are adamant that dividends don't matter but are just the removal of value from the company's share price. Instead, they think that selling shares to create your own synthetic dividendContributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do thei ...

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 ...