Pfizer: Best U.S. Large-Cap Idea for 2009 - RBC

Pfizer Inc. (PFE) gets the nod from the RBC Capital Markets crack team of quantitative analysts as the best US large-cap idea for 2009.

The team said in a note to clients that Pfizer has a lot of things going for it right now, including earnings that are predictable with attractive multiples, both trailing and forward, and a dividend yield of 7.2%, which is higher than any other health care stock on the the S&P 500.

Pfizer also has a strong growth profile with a forward return on equity of more than 25% and seems to have momentum behind it.

They wrote:

Momentum is much stronger for Pfizer than it's been in over fiver years... and it's not just price momentum. Fundamental momentum is also extremely attractive for the name.

Shares in Pfizer are down about 1% so far this year. In 2008, the stock fell 22%.

Comments

[swd1979:]

PFE's a good place to be. Good things come to those who wait.

Jan 09 09:57 PM

[bryanz:]

"Pfizer's stronger than it's been in fiver years?"
Those Canadians are funny English speakers.

PFE looked really attractive at $15... I think it still looks pretty good from an income perspective... my concern is growth.

Jan 10 10:49 PM