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Valued at a market cap of $140.8 billion, Pfizer Inc. (PFE) develops, manufactures, markets, distributes, and sells medicines and vaccines across a wide range of therapeutic areas, including oncology, immunology, cardiology, endocrinology, and infectious diseases. The New York-based company is globally recognized for its strong research and development capabilities, as well as its leadership in innovative vaccines and treatments.
Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and Pfizer fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the drug manufacturers - general industry. The company's key strength lies in its global scale, diverse product portfolio, and proven expertise in bringing life-saving medicines and vaccines to market. It plays a pivotal role in improving patient outcomes and advancing public health worldwide.
This healthcare giant has dipped 18.6% from its 52-week high of $30.43, reached on Oct. 9, 2024. Shares of PFE have gained 5.6% over the past three months, underperforming the Nasdaq Composite’s ($NASX) 11.9% surge during the same time frame.
In the longer term, PFE has declined 13.9% over the past 52 weeks, considerably lagging behind NASX's 22.2% uptick over the same time period. Moreover, on a YTD basis, shares of PFE are down 6.7%, compared to NASX’s 11.1% return.
To confirm its bearish trend, PFE has been trading below its 200-day moving average since early November 2024, with slight fluctuations, and has recently started trading below its 50-day moving average.
Shares of Pfizer soared 5.2% on Aug. 5, after delivering better-than-expected Q2 results. The company experienced strong growth in its global biopharmaceuticals business, driven by a robust increase in sales of its oncology and primary care segments. This resulted in a 10.3% year-over-year increase in its overall revenue to $14.7 billion, surpassing the consensus estimates by 6.3%. Moreover, its adjusted EPS of $0.78 advanced 30% from the year-ago quarter, exceeding analyst forecasts by a notable margin of 34.5%. Looking ahead, PFE raised its fiscal 2025 adjusted EPS guidance and now expects it to be between $2.90 and $3.10, further bolstering investor confidence.
Furthermore, PFE has outpaced its rival, Merck & Co., Inc. (MRK), which declined 28.4% over the past 52 weeks and 15.4% on a YTD basis.
Despite PFE’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 23 analysts covering it, and the mean price target of $27.90 suggests a 12.7% premium to its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
