Pfizer: Undervalued Healthcare Leader Poised For Further Recovery

(7min)

Summary

  • Pfizer's transition from COVID revenue faces skepticism, as PFE underperformed its healthcare peers recently.
  • Successful integration of Seagen is crucial for Pfizer's oncology portfolio, potentially lifting investor sentiment.
  • Pfizer's cautious approach to weight loss drugs suggests success is far from certain, raising its execution risks to disrupt the market.
  • Significant cost-cutting efforts targeting over $4B in savings are critical for near-term profitability and improving earnings outlook.
  • I explain why PFE's growth-adjusted valuation bolsters its bullish thesis, as the market seems to have reflected significant pessimism.
  • Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Pfizer

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Pfizer: Moving On From COVID Is Easier Said Than Done

Pfizer's (NYSE:PFE) stock has underperformed its healthcare (XLV) peers since PFE topped out in late July 2024. As a result, the market is likely still concerned with the

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This article was written by

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks.

He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing.

He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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