Pfizer Trading Above 50-Day SMA: Is it a Good Time to Buy the Stock?

Core Insights - Pfizer's stock has shown a potential short-term bullish trend, trading above its 50-day and 200-day moving averages since early November and late September respectively [1][9] - The recent acquisition of Metsera for approximately $10 billion has positively impacted Pfizer's stock performance, alongside a drug pricing agreement with the U.S. administration [2][9] - Pfizer's oncology segment is a significant revenue driver, contributing around 28% to total revenues, with a year-to-date growth of 7% [5][10] Company Performance - Pfizer's oncology revenues are supported by key drugs such as Xtandi, Lorbrena, and Padcev, and the company aims to have eight or more blockbuster oncology medicines by 2030 [5][10] - The company is expanding its product labels and pipeline, including both oncology and non-oncology products [6] - Non-COVID operational revenues are improving, with a 9% operational increase in recently launched and acquired products in the first nine months of 2025 [7][10] Strategic Acquisitions - Pfizer has invested approximately $1.6 billion in business development transactions in 2025, including the Metsera acquisition, which re-enters the obesity market [11] - The Metsera acquisition adds four novel clinical-stage programs expected to generate significant peak sales [11] Challenges and Risks - Sales of COVID products, Comirnaty and Paxlovid, are experiencing softness due to lower vaccination and infection rates [12][13] - Pfizer anticipates a moderate negative revenue impact from loss of exclusivity (LOE) starting in 2025, with significant effects expected from 2026 to 2030 [14] - The company expects an unfavorable impact of approximately $1 billion from the Medicare Part D redesign under the Inflation Reduction Act [15] Financial Outlook - Pfizer's stock has underperformed compared to the industry and S&P 500, with a year-to-date loss of 5.4% [16] - The stock is trading at a price/earnings ratio of 7.97, below the industry average of 16.71 and its five-year mean of 10.48, indicating potential value [19] - The Zacks Consensus Estimate for earnings has increased for 2025, reflecting a positive outlook [22] Future Projections - Pfizer expects a revenue compound annual growth rate (CAGR) of approximately 6% from 2025 to 2030, driven by its diversified portfolio [10] - The company aims to achieve cost savings of $7.7 billion by the end of 2027 through restructuring [25] - Pfizer's dividend yield stands at around 7%, providing an attractive return for investors [25]