Pfizer's broader portfolio and higher dividend yield give it an edge over Bristol Myers in the oncology showdown.
Pfizer (PFE) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Pfizer's >7% dividend yield is attractive, but faces significant risk due to political, regulatory, and business headwinds impacting revenue and profitability. Major threats include U.S. healthcare policy changes, looming patent expiries, misfiring M&A, heavy debt, and over-reliance on COVID vaccine revenues. Management insists the dividend is safe barring a 'catastrophe,' but current challenges feel borderline catastrophic, making a cut plausible if pressures persist.
The market has become overly pessimistic on Pfizer, focusing on the patent cliff while ignoring the defensive cash flows and offensive catalysts. This has created a classic value opportunity. A fortress 7% dividend yield provides a powerful downside cushion. We analyze the cash flows to show why this payout is secure and offers a compelling return. We model a 'revenue bridge' to demonstrate how Pfizer's underappreciated pipeline in oncology, vaccines, and I&I is poised to more than fill the gap left by major expirations like Eliquis.
Pfizer (NYSE:PFE) stock is a biopharmaceutical firm that had a magnificent breakout in 2021 as the worst of the pandemic sent COVID vaccine demand through the roof.
PFE's oncology portfolio, boosted by Seagen and late-stage pipeline assets, may fuel growth amid lackluster stock performance.
Investing capital means balancing risk, goals, and timing, especially when markets face uncertainty and shifting global dynamics. I focus on long-term value and income. I highlight two undervalued opportunities with strong dividends that have suffered recent setbacks but show solid growth potential in key sectors like real estate and healthcare. Both picks combine resilience and strategic advantages, offering attractive yields and upside for dividend investors seeking quality income in a complex market environment.
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.
Investors interested in stocks from the Large Cap Pharmaceuticals sector have probably already heard of Pfizer (PFE) and Eli Lilly (LLY). But which of these two stocks is more attractive to value investors?
PFE's new drug launches and Seagen acquisition are driving revenue gains despite COVID declines and market headwinds.
Alexandros Michailidis / iStock Editorial via Getty Images Pfizer Pharmaceutical company Pfizer Inc.
Pfizer offers a high 7.4% dividend yield and trades at low valuation multiples, making it attractive for income-focused investors despite recent underperformance. The company faces significant patent cliffs, risking about $20 billion in annual revenue, and is unlikely to avoid revenue declines in the next few years. Management is responding with cost cuts, acquisitions, and licensing deals, but growth prospects remain limited and stability is a key concern.