Is Pfizer a good stock to buy?
Pfizer (PFE) is a multi-national pharmaceutical and biotechnology company that is headquartered in Manhattan, New York. The company’s most popular drugs include Viagra, Zoloft, Lipitor, and their COVID-19 vaccine. The company’s stock price has varied considerably over the last several years. Over the last 12 months, shares of Pfizer’s stock have gained approximately 47.43%. To put that into context, consider that the benchmark S&P 500 Index has increased by just 15.62% over the same period. Is Pfizer a good fit for your portfolio?
Should I buy Pfizer stock?
Pfizer's price-to-sales multiple is currently around 3.66, which is on the lower side of its normal range over the past decade. Looking at the company's trailing price-to-earnings ratio (P/E) of 13.65, the stock remains undervalued compared to its peers, despite the stock's surge this year.
Pfizer (NYSE: PFE) has been at the front of the industry, developing treatments for COVID since the pandemic started. Investors have responded to Pfizer's COVID success; the stock has been up 56% over the past year. However, Pfizer is less risky than Moderna, which depends solely on its COVID-19 vaccine. Moderna doesn't have any near-term growth driver other than its COVID-19 vaccine. Pfizer, though, had more near- and long-term growth drivers, with a larger pipeline.
What is Pfizer's stock forecast?
The 14 analysts offering 12-month price forecasts for Pfizer Inc have a median target of 61.21, with a high estimate of 76.00 and a low estimate of 50.00. The median estimate represents a +16.39% increase from the last price of 52.59.
Is Pfizer a good stock to buy now?
Right now, Pfizer's market cap is about $303 billion with the current price of $52.59. We now estimate Pfizer's Valuation to be $60 per share, which is 14% above the current market price of $52.59, implying that the current dip in PFE stock is a good buying opportunity for higher gains in the long term.
How do I buy Pfizer stock?
You’ll need to get set up with a broker to buy stock. A brokerage account lets you purchase and sell a stock, holds the shares for you, and collects any dividends that are paid. You can open an account with an online brokerage, a full-service brokerage (a more expensive choice), or a trading app such as Robinhood or Webull.
Once you’ve decided to buy shares of Pfizer, you need to choose your investing strategy. Some people prefer lump-sum investing if they feel a stock’s price is particularly low. But if you still aren’t sure how much to invest in Pfizer stock, consider dollar-cost averaging. With this strategy, you’ll invest a specific amount at regular periods, such as weekly or monthly. This can be less stressful than investing the full amount all at once, as it can lower the chance of buying in fully at an inopportune time.
Final thought
Before investing in individual stocks, such as Pfizer, think about your goals and the rest of your portfolio. Whether PFE stock is a suitable investment for your portfolio depends on your personal circumstances and risk tolerance. You should evaluate the level of risk you are prepared to accept before investing. And never invest money that you cannot afford to lose.
