Morningstar has reduced Pfizer Inc.’s moat rating to narrow due to portfolio setbacks and policy risk, but the company’s strong foundation and diverse drug portfolio support steady cash flows and competitive advantages in developing new drugs.

Pfizer Inc.’s strong Q1 2025 performance, with revenues of $13.7 billion and adjusted diluted EPS of $0.92, reflects its focus on operational efficiency and financial discipline. Aggressive cost-saving initiatives aim to improve long-term profitability and allocate resources to high-potential areas like pipeline development.

While Pfizer Inc. shows investment potential, certain AI stocks may offer greater upside potential with less downside risk. Investors seeking undervalued AI stocks can explore opportunities in the market for short-term gains and strategic acquisitions.

Read more at Yahoo Finance: Morningstar Reduces Moat Rating For Pfizer (PFE) To Narrow