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Should You Buy Pfizer Stock Right Now?
PFEPfizer(PFE) The Motley Fool·2025-06-07 10:30

Core Viewpoint - Pfizer is a pharmaceutical company with solid growth potential and a high dividend yield, making it a stock worth considering for investment [1][6]. Company Overview - Pfizer has a market value of approximately 133billionandhasbeeninoperationsince1849,offeringmultipletreatmentsandarobustpipelineofproducts[3].−Thecompanycurrentlyhas108candidatesinitspipeline,with47inphase1,28inphase2,and30inphase3,focusingsignificantlyononcologyandvariousvaccines[4].CurrentProducts−MajormedicationsincludetheCOVID−19vaccine,Paxlovid,Prevnar,Ibrance,andXtandi[5].InvestmentConsiderationsReasonstoInvest−Thestockoffersadividendyieldof7.3133 billion and has been in operation since 1849, offering multiple treatments and a robust pipeline of products [3]. - The company currently has 108 candidates in its pipeline, with 47 in phase 1, 28 in phase 2, and 30 in phase 3, focusing significantly on oncology and various vaccines [4]. Current Products - Major medications include the COVID-19 vaccine, Paxlovid, Prevnar, Ibrance, and Xtandi [5]. Investment Considerations Reasons to Invest - The stock offers a dividend yield of 7.3%, generating around 730 for every 10,000invested,withacommitmenttomaintainandgrowthisdividendovertime[6][9].−Pfizer′svaluationislow,withaforward−lookingP/Eratioof8,belowitsfive−yearaverageof10,andaprice−to−salesratioof2.1,lowerthanitsfive−yearaverageof3.1[11].−Thecompanyhasstronggrowthprospects,particularlyinoncology,bolsteredbytheacquisitionofSeagenfor10,000 invested, with a commitment to maintain and grow this dividend over time [6][9]. - Pfizer's valuation is low, with a forward-looking P/E ratio of 8, below its five-year average of 10, and a price-to-sales ratio of 2.1, lower than its five-year average of 3.1 [11]. - The company has strong growth prospects, particularly in oncology, bolstered by the acquisition of Seagen for 43 billion [11]. Reasons Against Investment - The payout ratio is 122%, indicating that the company is paying out more than its earnings in dividends, which may not be sustainable [11]. - Pfizer has experienced average annual losses of 18.6% over the past three years, with revenue declining from 100.3billionin2022to100.3 billion in 2022 to 63.6 billion in 2024 [11]. - Several key products are losing patent protection, and concerns have arisen regarding the safety of its weight-loss drug candidate [11]. - Ongoing tariff wars and government efforts to lower drug costs may pose additional challenges for the company [11].