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Pfizer Inc. (PFE), headquartered in New York, discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products. With a market cap of $149.8 billion, the company offers medicines, vaccines, medical devices, and consumer healthcare products for oncology, inflammation, cardiovascular, and other therapeutic areas.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and PFE perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the general drug manufacturers industry. PFE thrives on its strong product lineup, including popular vaccines and blockbuster drugs. With a commitment to research and development, Pfizer continues to invest in innovation, ensuring a steady stream of new products. International sales make up nearly half of its revenue, highlighting its global reach and competitive standing in the pharmaceutical industry.
Despite its notable strength, PFE slipped 16.8% from its 52-week high of $31.54, achieved on Jul. 30, 2024. Over the past three months, PFE stock gained 2.7%, underperforming the iShares U.S. Pharmaceuticals ETF’s (IHE) 5.7% gains during the same time frame.
In the longer term, shares of PFE dipped 1.1% on a YTD basis and declined 1.3% over the past 52 weeks, underperforming IHE’s YTD gains of 10.9% and 5.9% returns over the last year.
To confirm the bearish trend, PFE has been trading below its 50-day moving average since October 2024, experiencing some fluctuations. The stock is trading below its 200-day moving average since November 2024.
PFE has seen underperformance due to declining sales of COVID-19 products and upcoming patent cliffs for top-selling products like Eliquis. The launch of generic versions of Eliquis in 2028 could significantly impact revenue. The company is also set to lose exclusivity on other blockbuster products like Ibrance, contributing to lower revenue and a drop in share price.
On Feb. 4, PFE shares closed down more than 1% after reporting its Q4 results. Its adjusted EPS $0.63 beat Wall Street expectations of $0.48. The company’s revenue was $17.8 billion, exceeding Wall Street forecasts of $17.5 billion. PFE expects full-year adjusted EPS in the range of $2.80 to $3, and expects revenue in the range of $61 billion to $64 billion.
In the competitive arena of general drug manufacturers, Bristol-Myers Squibb Company (BMY) has taken the lead over PFE, showing resilience with a 5.9% gain on a YTD basis and a 17.7% uptick over the past 52 weeks.
Wall Street analysts are moderately bullish on PFE’s prospects. The stock has a consensus “Moderate Buy” rating from the 22 analysts covering it, and the mean price target of $30.47 suggests a potential upside of 16.1% from current price levels.
