Is Pfizer (PFE) Stock a Profitable Investment? Near 11-Year Low with Potential Massive Upside

• Pfizer (PFE) stock has seen a recent boost due to better-than-expected first-quarter sales, largely due to a one-time benefit from Covid drug Paxlovid.
• The pharmaceutical company has also been granted new drug approvals by the FDA, including Tivdak for cervical cancer and Beqvez for hemophilia B.
• However, the company’s revenue from Covid products continues to decline, and it has faced setbacks in its attempts to enter the weight-loss drug market.

Pfizer’s stock performance and recent developments in its product portfolio have investors questioning whether it’s a buy or sell. This article provides an in-depth analysis of the company’s financials, recent news, and market position.

Pfizer’s First-Quarter Report: A ‘Massive’ Upside

Analyst David Risinger from Leerink Partners noted a “massive” upside in Pfizer’s first-quarter report. Despite a 33% fall in adjusted earnings, the company exceeded expectations with sales of $14.88 billion, a 20% decrease from the previous year. Notably, sales of Vyndaqel, a treatment for cardiomyopathy, rose by 66% to $1.14 billion, surpassing projections.

Annual Metrics and Future Projections

Pfizer’s sales have significantly dropped since 2022, with a 42% decrease to nearly $58.5 billion last year. However, the company expects an increase in sales for 2024, projecting earnings of $2.15 to $2.35 per share and $58.5 billion to $61.5 billion in sales.

Recent News and Approvals

Recent FDA approvals for Beqvez, a gene therapy for hemophilia B, and promising results for the new drug Adcetris have put Pfizer in the spotlight. Additionally, the company’s RSV vaccine, Abrysvo, has shown “durable” effectiveness over two years, further strengthening its product portfolio.

Technical Analysis of PFE Stock

Despite trading far below its 200-day moving average, Pfizer stock topped its 50-day line on May 1 after reporting its first-quarter earnings. However, it’s important to note that the shares are not currently forming a chart pattern for investors to watch.

Is PFE Stock a Buy or a Sell?

Given the current market conditions and Pfizer’s performance, the stock is not a buy right now. Despite recent gains, Pfizer still needs to prove its fundamental and technical merit. The company’s future growth will largely depend on its adult RSV vaccine and the success of its newly acquired Seagen.

Conclusion

While Pfizer’s recent performance and new product approvals have boosted its stock, the company faces challenges in maintaining this momentum. Investors should keep a close eye on Pfizer’s upcoming developments and market performance to make informed decisions.