In the pharmaceuticals sector, there is no stock I like right now more than Pfizer Inc. (NYSE:PFE), for a variety of reasons. Most of the analysis on this stock right now has to do with the company’s highly-touted COVID-19 vaccine which is now making waves through global markets. That said, even before the vaccine was released, I saw tremendous value in this stock, and the same is true of the stock’s current valuation relative to its peers and its growth potential.
On the vaccine front, most analysts expect the company’s rollout to be extremely fast, and with production issues not likely to materially affect the company’s rollout plans, these vaccines could provide a massive boost to earnings in the near- and medium-term, providing a solid catalyst for this stock in the near-term. Over the long-term, the company’s portfolio of products, brands and patents still hold tremendous value and are under-appreciated at the company’s current stock price in my view.
From a fundamentals perspective, Pfizer’s stock is cheap, trading at just 24-times earnings (though this has increased in recent weeks due to the announcement around the company’s COVID-19 vaccine). I think the company’s stock price is not fully pricing in the top and bottom line growth that is to come, particularly over the next few years. As a long-term buy and hold opportunity, Pfizer is a great option for investors of all risk tolerances across the spectrum.
Invest wisely, my friends.