Pfizer Stock: Growth Profile Looks Attractive as Ever



 

Pfizer (PFE) stock plunged about 18% from its August 2021 peak, giving up a considerable chunk of the gains enjoyed during the early summer.

 

With booster-shot season quickly approaching, the $239-billion biopharmaceutical company behind the COVID-19 vaccine Comirnaty may be in for a bounce-back as prudent investors rotate back into value names with underestimated growth profiles.

 

With an attractive growth profile and a depressed valuation, I remain bullish on shares of Pfizer.

 

Pfizer Looks More Exciting Than Moderna

 

With a mere 18x trailing earnings multiple, you wouldn’t view Pfizer, a more than century-old company, as on the cutting edge of innovation.

 

The incredible mRNA vaccine that helped the world curb COVID-19 is an astonishing innovation for a company that still doesn’t seem to get the hype it deserves.

 

While Moderna (MRNA) and its more potent Spikevax coronavirus vaccine may be a pure-play on mRNA vaccines that aim to inoculate against more than just COVID-19, its stock is wildly expensive, with way too much optimism baked in.

 

 

Indeed, if a clinical trial doesn’t go well, Moderna stock likely has more room to the downside. Although Pfizer’s COVID-19 vaccine and boosters will not move the needle as high as it would for Moderna, one must not discount Pfizer’s innovations, or assume the firm is no longer capable of reinventing itself into a higher-growth company.

                                                                                                                         

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