Given its better valuation, we believe that Pfizer stock (NYSE: PFE) is currently a better pick than its industry peer – AbbVie stock . PFE stock trades at a much lower multiple of 11x forward, versus 20x for ABBV, and we think this gap in valuation will narrow in favor of Pfizer in the coming years.
Pfizer (PFE) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Investors with an interest in Large Cap Pharmaceuticals stocks have likely encountered both Pfizer (PFE) and Novo Nordisk (NVO). But which of these two companies is the best option for those looking for undervalued stocks?
Pfizer is slowly starting to replace its COVID-19 portfolio with newer medicines. Snap's strong ecosystem could allow it to eventually turn a profit and deliver strong returns.
In the most recent trading session, Pfizer (PFE) closed at $29.74, indicating a +1.11% shift from the previous trading day.
I believe Pfizer should be rated as a "Buy" due to its strong non-COVID portfolio, cost control, promising pipeline, and current undervaluation. Recent financial performance shows 14% YoY operational growth excluding COVID sales, with improved gross margins and raised full-year revenue and EPS guidance. The company's R&D pipeline, including potential blockbuster drugs like danuglipron, is expected to offset losses from patent expirations between 2025-2030.
Recently, Zacks.com users have been paying close attention to Pfizer (PFE). This makes it worthwhile to examine what the stock has in store.
Pfizer's RSI is trending upward, bouncing from the 50 support level, signaling potential stock strength and accumulation. Pfizer's KP.2-adapted COVID-19 vaccine received FDA approval, positioning the company to capture significant market share in 2024-2025. Pfizer's Q2 2024 revenue reached $13.3 billion, with 14% operational growth excluding COVID-related products, showing strong core portfolio performance.
W.P. Carey has adjusted well to the shrunken need for office space following the pandemic. AT&T is adding heaps of broadband subscribers and retaining its mobile internet subscribers.
Pfizer has an attractive valuation due to two key factors. The drugmaker has multiple growth drivers in its lineup and potentially more in the pipeline.
Pharmaceutical (PPH) stocks have done relatively well this year. The closely watched iShares US Pharmaceutical ETF (IHE) stock has jumped by 16.5%, slightly beating the S&P 500 index, which has risen by 16.3%.
Investing in biotech and pharma stocks is certainly not for everyone, as these companies are vulnerable to various external risks. I turned bullish on Pfizer last January based on several reasons, including the expectations for a resumption in buybacks and the company's strategy shift to focus on profitable growth. A couple of days ago, Vaxcyte, a clinical-stage biotech company, reported promising results in a Phase 1/2 trial for its pneumococcal vaccine, threatening Prevnar, Pfizer's blockbuster drug.