Pfizer Stock: It May Be Just The Beginning Of A Solid Rally

(11min)

Summary

  • I initiated a "Buy" rating on Pfizer stock in February 2024, and since then, it's aging well. I believe the recovery rally in PFE stock may be just the beginning.
  • The cost management initiatives seem to be progressing faster and more efficiently than one would have thought a few quarters ago - the solid Q2 numbers show that.
  • Wall Street analysts are still giving very modest EPS growth projections for the next few years, creating a ground for possible EPS beating in the next quarters.
  • My earlier assumptions that the potential for margin expansion at Pfizer was enormous began to materialize. I calculate a growth potential of 42% by the end of 2025.
  • I rate PFE stock as a "Buy" again.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Pfizer

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My Thesis Update

I initiated coverage on Pfizer (NYSE:PFE) stock with a "Buy" rating, stating that the company's low valuation and strong product pipeline make it the ultimate buying opportunity for income investors in the healthcare sector. In early May, I

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This article was written by

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Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.

He leads the investing group Beyond the Wall Investing with features that include: a fundamentals-based portfolio, weekly analysis on insights from institutional investors, regular alerts for short-term trade ideas based on technical signals, ticker feedback by request from readers, and community chat. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of PFE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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