Investors interested in stocks from the Large Cap Pharmaceuticals sector have probably already heard of Pfizer (PFE) and Novo Nordisk (NVO). But which of these two stocks offers value investors a better bang for their buck right now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Dividend stocks to watch in the stock market today.
Pfizer beat pharma records when its annual revenue soared past $100 billion in 2022, thanks to its coronavirus vaccine and treatment. As demand for these products slowed, revenue dropped -- so the big pharma made a billion-dollar bet in another high-growth market.
I initiated a "Buy" rating on Pfizer stock in February 2024, and since then, it's aging well. I believe the recovery rally in PFE stock may be just the beginning. The cost management initiatives seem to be progressing faster and more efficiently than one would have thought a few quarters ago - the solid Q2 numbers show that. Wall Street analysts are still giving very modest EPS growth projections for the next few years, creating a ground for possible EPS beating in the next quarters.
Pfizer's management is committed to maintaining and growing the dividend. The big drugmaker's dividend should be even more secure thanks to coming bottom-line improvements.
CEO Albert Bourla doesn't see the company making a big acquisition for a GLP-1 drugmaker. Pfizer has close to $70 billion in long-term debt on its books.
Pfizer's earnings soared earlier in the pandemic, thanks to its blockbuster coronavirus vaccine and treatment. Since, revenue has dropped -- but Pfizer has made major efforts to return to growth.
On Tuesday, Pfizer Inc. PFE reported second-quarter adjusted EPS of $0.60, down 11% year over year, beating the consensus of $0.46.
The prime culprit for yesterday's 9.8% drop in Merck was what seemed to be a rather slight slip in Gardasil revenue – Merck's HPV vaccine – which came in about $20 million below consensus. At $113 – $115 per share, MRK is now trading at 14x and 12x 2024 and 2025 consensus estimates for expected growth this year that compares to '22 $7.48 in EPS. Pfizer reported a good quarter yesterday, with a 2% revenue beat and a 30% EPS for y-o-y growth of 2%, 9% operating income growth and -2% decline in EPS.
Pfizer (PFE) shares rose Tuesday after the pharmaceutical giant beat second-quarter revenue expectations and raised its full-year guidance.
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