Pfizer Stock Falls to New 52-Week Low: Should You Buy the Dip?

Core Viewpoint - Pfizer's stock has faced significant volatility, hitting a 52-week low of $20.92, primarily due to global uncertainties from the tariff war and potential tariffs on pharmaceuticals [1][2]. Financial 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 [4]. - Non-COVID operational revenues improved by 12% in 2024, surpassing the guidance range of 9-11%, driven by key products and acquisitions [5]. - Pfizer's oncology revenues grew 26% operationally in 2024, contributing around 25% to total revenues, supported by successful drugs and a strong pipeline [7]. Market Position - Pfizer's stock has underperformed the industry, declining 13.8% year-to-date compared to a 7.6% decrease for the industry [8][9]. - The stock is trading at a price/earnings ratio of 7.55, significantly lower than the industry average of 14.37 and its 5-year mean of 11.05, indicating an attractive valuation [12]. Future Outlook - The Zacks Consensus Estimate for 2025 earnings has slightly increased from $2.95 to $2.98 per share, while the estimate for 2026 has decreased from $3.03 to $2.99 [15]. - Pfizer anticipates cost savings of at least $6 billion from restructuring, which, along with growth in non-COVID sales, is expected to drive profit growth [20]. - The company returned $9.5 billion to shareholders through dividends in 2024, resulting in a dividend yield of around 7.6%, well above the industry average [21]. Investment Considerations - With the stock at new lows, it may present a buying opportunity for long-term gains, appealing to both value and income investors due to its low valuation and high dividend yield [24].