Staying Away from Big Pharma (MRK, PFE)

 |  Includes: MRK, PFE
by: Eddy Elfenbein

Eddy Elfenbein submits: Everyone knows about the troubles of Big Pharma. Last year, I said that I had more faith in Merck (NYSE:MRK) than in Pfizer (NYSE:PFE), though I wasn’t going to buy either.

On Friday, Pfizer lowered its earnings forecast for 2006. Wall Street was looking for $2.03 a share, but the company is only expecting $2 a share. Last year’s earnings came in at $2.02 a share.

Merck could be a good buy in a year or so, but I still wouldn’t touch either of these stocks.

MRK, PFE 1-yr Stock Performance