Pfizer Stock Analysis: Performance, Fundamentals, and Future Prospects

Pfizer Inc. (PFE), a leading pharmaceutical company, has seen its stock take a tumble in the past two years, despite its groundbreaking work in developing the first Covid-19 vaccine with BioNTech (BNTX). In this article, we will delve into Pfizer’s recent performance, its fundamental metrics, and the future prospects of the company.

Performance Analysis

Pfizer’s stock price peaked in December 2021, but since then, it has been on a downward trend. The company’s market capitalization has decreased significantly, and its stock price has failed to recover despite the approval of new drugs and acquisitions.

In December 2023, Pfizer completed its $43 billion acquisition of Seagen, a cancer-focused biotech company. The deal centered on Seagen’s expertise in antibody drug conjugates (ADCs), which allow for targeted delivery of chemotherapy directly to tumor cells, minimizing damage to healthy tissue. Following the acquisition, Pfizer announced the approval of its new drug, Padcev, in combination with Merck’s (MRK) Keytruda for patients with advanced bladder cancer.

Despite these positive developments, Pfizer’s stock price has continued to decline. In the fourth quarter of 2023, Pfizer reported an unexpected profit of 10 cents per share, but earnings tumbled 91% year over year. Sales also plummeted 41% to $14.25 billion and missed forecasts. The profit was due to better-than-expected gross margins and low research and development spending.

Fundamental Analysis

Pfizer’s sales have fallen markedly since hitting a record in 2022. In 2023, sales tumbled 42% to nearly $58.5 billion. Top sellers included Comirnaty and Paxlovid, which brought in a $11.22 billion and $1.28 billion, though sales tumbled a respective 70% and 93% year over year. Blood thinner Eliquis generated $6.75 billion in sales, up 4%, and Prevnar sales inched 2% ahead to $6.44 billion. However, other key products saw downfalls. Revenue from Xeljanz fell 5% to $1.7 billion, and sales of Enbrel toppled 17% to $830 million.

For 2024, Pfizer expects adjusted earnings of $2.05 to $2.25 per share and $58.5 billion to $61.5 billion in sales. At the midpoints, earnings would climb almost 17% as sales rise almost 3%. Pfizer is now awaiting decisions in the U.S. and Europe for marstacimab, a potential treatment for hemophilia A and B. Marstacimab is a once-weekly under-the-skin shot, compared with standard intravenous infusions for hemophilia patients. If approved, it would be the first hemophilia drug that uses a flat dose, meaning all patients receive the same amount of drug regardless of weight.

Future Prospects

Pfizer’s recent performance and fundamental metrics raise questions about the company’s future prospects. The stock is trading well below its 200-day moving average and sank back below its 50-day line on Jan. 10. Shares have a Composite Rating of 21 out of a best-possible 99 and a Relative Strength Rating of 12 out of a best-possible 99. The EPS Rating is 34 out of a best-possible 99.

Despite these challenges, Pfizer is making strides in its pipeline and seeking new approvals. The adult RSV vaccine, which hit the market at the same time as a competitor from GSK, could be a key growth area for the company. Pfizer’s efforts now that it owns Seagen could also lead to future growth.

Conclusion

Pfizer’s stock has been on a downward trend for the past two years, despite its groundbreaking work in developing the first Covid-19 vaccine. The company’s recent performance and fundamental metrics raise questions about its future prospects. However, Pfizer is making strides in its pipeline and seeking new approvals, which could lead to growth opportunities. Investors should keep a close eye on Pfizer’s developments and consider the company’s potential as a long-term investment.

Disclaimer: This article is for informational purposes only and should not be taken as investment advice. Always do your own research and consult with a financial advisor before making investment decisions.