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Pfizer has been struggling for years.
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The company’s pipeline could help it turn around.
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It also has a solid dividend plan and is attractively valued.
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10 stocks we like better than Pfizer ›
The transaction price is just under $25 per piece, Pfizerof (NYSE: PFE) Shares appear cheap for the time being. However, the pharmaceutical giant has reached these levels because it has faced significant headwinds, leading to poor stock market performance over the past three years.
However, what is the future for this struggling giant? At current levels, is Pfizer worth investing in?
Pfizer’s revenue and earnings have been inconsistent over the past few years. To make matters worse, the drugmaker will hit significant patent cliffs within a few years, including for one of its best-selling drugs, the anticoagulant Eliquis. Even so, the company has been gradually gaining new approvals, some of which should have a meaningful impact on its financial results as brand expansion is secured.
In addition, Pfizer has stepped up its acquisitions, which has helped it improve its pipeline. The company now has a comprehensive pipeline of candidates across multiple therapeutic areas, with a specific focus on cancer. It also has a promising weight loss candidate. Pfizer should launch several new products to bolster its lineup by the end of the decade.
Buying shares of top companies when they’re declining is a great way to earn strong returns over the long term. Pfizer is a top choice to consider because it has been making the right moves to overcome slow (or non-existent) revenue growth and a patent cliff. There are even more reasons to consider the stock. Here are three.
First, Pfizer signed an agreement with the Trump administration that allowed it to avoid tariffs for three years. Second, the company is a consistent dividend payer. The company has increased its dividend payments by 51.3% over the past decade and has a forward yield of 6.9%.
Finally, Pfizer trades at 8.5 times forward earnings, well below the healthcare industry average of 18.4 times. All of these are compelling reasons to buy the stock.
Before buying Pfizer stock, consider the following factors:
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