Pfizer (NYSE:PFE), a large-cap pharmaceutical company based in Manhattan, offers a range of treatment drugs for various conditions, selling its products globally through wholesalers, retailers, hospitals, government clinics, and pharmacies. Despite the recent impressive gains seen in many pharma stocks, Pfizer has not fared as well. PFE stock has experienced a significant decline of 34.8% in the last 52 weeks, with a drop of over 7% in 2024. The stock is currently trading near its 52-week low of $25.61, set in early March.
In late January, Pfizer reported its full-year 2023 and Q4 results. While the revenue of $14.25 billion fell short of analysts’ expectations of $14.36 billion, the adjusted earnings per share of $0.10 outperformed the forecasted loss of $0.19 per share. The company faced challenges during the quarter, including a revenue reversal of around $3.5 billion from the U.S. government related to the return of unused doses of its COVID-19 treatment drug, Paxlovid. Additionally, revenue from key products like Ibrance and the Prevnar pneumonia vaccine was lower than expected.
Looking ahead to FY2024, Pfizer anticipates earnings in the range of $2.05 to $2.25 per share, with revenue expected to be between $58.5 billion and $61.5 billion. However, one area where Pfizer is lagging behind its competitors, according to investment research firm Argus, is in the launch of GLP-1 weight-loss drugs. This has led Argus to downgrade Pfizer stock to a “Hold” rating, citing concerns over the company’s decrease in top line growth and recent setbacks in its twice-daily GLP-1 formulation.
Despite these challenges, analysts overall have a consensus “Moderate Buy” rating on Pfizer stock, with a mean price target of $35.74, representing a potential upside of 34.1% from Thursday’s close. The stock offers a dividend yield of 6.3% and is priced at 2.52x forward sales and 12.03x forward EPS, making it relatively cheaper than its GLP-1 rivals, Eli Lilly and Novo Nordisk.
In conclusion, while Pfizer stock has underperformed significantly, investors interested in finding bargains in the pharma sector may want to monitor Pfizer shares closely.
Featured Image: Pixabay
Author Stephanie Bédard-Châteauneuf 
