From Nasdaq: 2025-05-15 01:55:00

Pharmaceutical stocks, like Pfizer, faced scrutiny after President Trump’s order to lower medicine prices. Despite initial negative reactions, most stocks rebounded as legal challenges to the order were highlighted. The industry argues that U.S. pricing funds innovation. For investors seeking lower volatility, the Trefis High Quality portfolio has outperformed the S&P 500.

Pfizer’s shares trade at around $23, down 13% YTD from a peak of $60 in 2021. Sales surged to $100 billion in 2022 from $42 billion in 2020 due to COVID-19 vaccine demand. Pfizer’s revenue is now at $63 billion due to declining pandemic-related sales and recent setbacks in acquisitions and drug development.

Despite challenges, Pfizer shows signs of recovery with sales bottoming out in 2023, non-COVID products performing well, and cost-saving initiatives in place. Estimated valuation at $32 per share represents a nearly 40% upside. The current stock price at $23 offers significant value, considering the discounted shares and positive developments.

While Pfizer faces challenges, these are factored into its valuation. Patient investors may find value in PFE shares with discounted prices, positive non-COVID product developments, and operational improvements. However, investing in a single stock like PFE can be risky, making the Trefis High Quality Portfolio with 30 stocks a potentially safer option for outperforming the S&P 500.



Read more at Nasdaq: Pfizer And Drug Pricing: Should You Invest Now?