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New York-based Pfizer Inc. (PFE) is one of the world's largest pharmaceutical companies valued at $164.4 billion by market cap. The company is involved in the discovery, development, manufacturing, marketing, and distribution of biopharmaceutical products. Pfizer offers a broad range of medicines and vaccines across therapeutic areas such as oncology, inflammation and immunology, rare diseases, hospital care, and internal medicine.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and PFE fits right into that category. Pfizer excels with its diverse product portfolio, including leading drugs like Prevnar 13, Ibrance, and Eliquis, supported by a strong R&D focus and the strategic acquisition of Seagen to enhance its oncology offerings. The company's substantial global market presence, with nearly 50% of sales coming from international markets, highlights its capability to navigate diverse markets and meet global healthcare demands.
Despite its impressive portfolio and global presence, Pfizer's stock has faced significant headwinds lately, plummeting 22% from its 52-week high of $36.29, which it touched on September 5, 2023. Shares of PFE are down 3.5% over the past three months, underperforming the broader Dow Jones Industrial Average’s ($DOWI) 6.1% returns over the same time frame.
In the longer term, PFE has been underperforming the market, plunging 20.9% over the past year and 1.7% in 2024. By contrast, DOWI is up 8.6% on a YTD basis and 17.5% over the past 52 weeks.
Pfizer's recent price trend shows a bearish pattern, with the stock consistently trading below its 50-day moving average over the past year, with some fluctuations lately. Although it has largely stayed under its 200-day moving average during this period, the stock has been trading above it since early July.
Pfizer's stock has been under significant pressure due to a sharp decline in revenue from its COVID-19 products, including the Comirnaty vaccine and Paxlovid pill. More recently, Pfizer's stock momentum stalled in August despite a strong second-quarter report due to a setback with its Covid and flu combination vaccine, which showed weak efficacy against influenza B strains.
Highlighting the stock's underperformance, Pfizer has lagged behind its competitor, Merck & Co., Inc. (MRK). Shares of MRK have gained 6.1% in the past 52 weeks and 6.9% on a YTD basis.
Despite its underperformance compared to the market and peers, analysts are reasonably optimistic about PFE’s prospects. The stock has a consensus rating of “Moderate Buy” from the 21 analysts in coverage, and the mean price target of $33.42 is an 18.1% premium to current levels.
On the date of publication, Kritika Sarmah 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.
