Looking for dividends, value and potential growth in the pharmaceutical market? Take a look at Pfizer (NYSE:PFE) stock, as it checks all of these boxes. Moreover, Pfizer’s pipeline of products in 2023 will expand far beyond Covid-19 vaccines.
Sure, it may have been possible for Pfizer to rely heavily on Covid-19 vaccines as a revenue source in 2020. The times have changed since then, however. The World Health Organization (WHO) expects to declare an end to the Covid-19 pandemic this year, and the demand for vaccine shots could diminish quickly over the coming months.
Will Pfizer be nimble enough to adapt to a rapidly changing landscape for the pharmaceutical industry? The signs are overwhelmingly positive as this famous drugmaker strives to address a range of significant medical conditions.
PFE Stock Offers Value, Dividends and More
Before we turn to the medical side of the equation, let’s conduct a check up of PFE stock. First and foremost, the stock seems to offer a good value as Pfizer’s GAAP trailing-12-month price-to-earnings (P/E) ratio of 7.6x is considerably lower than the sector median of 24.95x.
Income investors should also be interested in Pfizer as the company pays a forward annual dividend yield of around 4%. Generations of investors have trusted Pfizer to continue paying healthy dividends, and it appears that the company is still committed to this.
What about growth, though? As we discussed earlier, Pfizer can’t count on the Covid-19 pandemic as a catalyst to generate revenue anymore. However, the company is still advancing Paxlovid, a proposed treatment for certain high-risk adult Covid-19 patients.
Pfizer asserts that Covid-19 “continues to cause significant burden in the U.S. as case rates fluctuate and new variants and sub-variants emerge.” So, even if the WHO ends Covid-19’s pandemic status this year, Pfizer might still be able to generate robust revenue from Paxlovid (assuming it’s approved by regulators).
Pfizer Focuses on Cancer and Other Medical Conditions
In any case, there’s no need to worry that Pfizer will be over-reliant on Paxlovid, and on Covid-19 treatments in general. There are plenty of other products in Pfizer’s pipeline.
That pipeline will broaden as Pfizer is has agreed to acquire Seagen (NASDAQ:SGEN) for $43 billion. This will give Pfizer access to Seagen’s cancer-combating medicines and programs. Seagen has multiple Food and Drug Administration (FDA)-approved cancer-targeting drugs in its portfolio.
Pfizer is also working on a number of other drugs/treatments. For example, the FDA recently approved Pfizer’s ZAVZPRET, a nasal spray “for the acute treatment of migraine with or without aura in adults.”
Additionally, Pfizer is working with regulators as the company attempts to achieve regulatory clearance for a “respiratory syncytial virus (RSV) bivalent vaccine candidate PF-06928316 or RSVpreF.” Pfizer also hopes to get approval for elranatamab, an antibody to treat “patients with relapsed or refractory multiple myeloma (RRMM).”
So, Is PFE Stock a Buy, Sell or Hold?
There might not officially be a Covid-19 pandemic later this year. Still, Pfizer continues to address the current Covid-19 pandemic. This isn’t a problem, though, as Pfizer has a packed and diversified product pipeline.
Therefore, Pfizer should have plenty of opportunities to generate revenue. All in all, Pfizer has healthy growth potential while also offering a value-and-yield combo that’s hard to resist. Hence, for a long-term buy-and-hold position, PFE stock is definitely a buy.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.