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With a market cap of $144.8 billion, New York-based Pfizer Inc. (PFE) is a global biopharmaceutical company that discovers, develops, and markets innovative medicines and vaccines across diverse therapeutic areas. With a streamlined portfolio post divestitures, it focuses on groundbreaking treatments in oncology, immunology, rare diseases, and infectious diseases.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Pfizer fits this criterion perfectly. Pfizer stands out in the market with its innovative pipeline of cutting-edge medicines and vaccines, including advancements in mRNA technology like Comirnaty and Paxlovid, and its focus on addressing unmet medical needs across diverse therapeutic areas. Additionally, its patient-centric initiatives, such as the PfizerForAll platform and partnerships to bridge healthcare disparities, emphasize accessible and equitable care.
However, the pharmaceutical giant has fallen 20% from its 52-week high of $31.54, recorded in July. Shares of PFE have dipped 11.1% over the past three months, underperforming the Health Care Select Sector SPDR Fund’s (XLV) 6.3% decline over the same time frame.
Longer term, PFE is down 12.4% on a YTD basis, lagging behind XLV’s 7.6% gain. Moreover, shares of Pfizer have declined 13.8% over the past 52 weeks, compared to XLV’s 11.1% return over the same time frame.
To confirm the bearish price trend, PFE has been trading below its 50-day and 200-day moving averages since late-October.
Pfizer reported stronger-than-expected Q3 2024 results on Oct. 29, with adjusted EPS of $1.06 and revenue of $17.7 billion, exceeding estimates. The growth was driven by higher-than-anticipated revenues from COVID-19 products like Paxlovid and new launches such as Abrysvo, alongside robust performance from non-COVID products like Vyndaqel and Eliquis. Furthermore, Pfizer raised its full-year revenue guidance to $61 billion - $64 billion and adjusted EPS guidance to $2.75 - $2.95. However, the stock fell 1.4% on that day due to concerns over CEO Albert Bourla's defense of recent acquisitions against criticism from activist investor Starboard Value, overshadowing the strong financial results.
Also, PFE has underperformed compared to its top rival, Sanofi (SNY), which has risen 2.1% over the past 52 weeks and a dip of 3.5% YTD.
Despite PFE’s weak price action, analysts are moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 24 analysts covering the stock, and the mean price target of $32.19 represents a premium of 27.6% to current levels.
