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New York-based Pfizer Inc. (PFE) is a leading global biopharmaceutical company with a strong market cap of $173.1 billion, focused on the discovery, development, and marketing of innovative drugs and vaccines. The company operates in multiple therapeutic areas and maintains strategic collaborations with major pharmaceutical companies.
Shares of the pharmaceutical giant have significantly underperformed the broader market over the past 52 weeks. PFE has decreased 14.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 20.5%. However, in 2024, PFE climbed into positive territory, with shares up 5%, but still lags behind the SPX's 15.8% gains on a YTD basis.
Zooming in further, PFE stock is also lagging behind the S&P 500 Healthcare Sector SPDR's (XLV) 13.1% gains over the past 52 weeks and 9.9% return on YTD basis.
Pfizer's underperformance is due to the sharp decline in COVID-19 product revenues and extensive cost-cutting measures, including layoffs. These challenges have strained employee morale and hindered the company's efforts to stabilize and regain investor confidence. However, the stock surged almost 2.2% on Jul. 30 after its better-than-expected Q2 earnings results. Additionally, Pfizer raised its forward guidance for both earnings and revenue, reflecting strong performance and increased confidence in its business.
For the current fiscal year, ending in December, analysts expect PFE's EPS to grow 38.6% year over year to $2.55. The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 21 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and 12 “Holds.”
This configuration has remained steady over the past three months.
On Jul. 12, UBS raised Pfizer's price target to $30, maintaining a “Neutral” rating, reflecting optimism from Q1 2024 performance and Seagen portfolio integration.
The mean price target of $33.68 represents a premium of 11.3% to PFE's current levels. The Street-high price target of $54 implies an impressive potential upside of nearly 77.9% from the current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
