1 Stock Down 43% That Looks Too Cheap to Ignore

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].