Should you buy Pfizer stock?

Pfizer (NYSE:PFE) is one of the world's leading pharmaceutical companies, and as you may have heard, it makes one of the most widely distributed coronavirus vaccines. But while Moderna gets a ton of hype, Pfizer may be the better-positioned company moving forward.

Now, while traditional vaccines (Johnson & Johnson and AstraZeneca) make use of a weakened or inactive part of a particular pathogen, or in this case, SARS-COV-2 virus, mRNA vaccines use a molecule called messenger RNA (or mRNA), rather than the actual pathogen to train the immune system. There are companies across the world, including in India which are working on rolling out mRNA vaccines. Amongst some of the most famous ones, Pfizer-BioNTech and Moderna vaccine are the most mRNA stocks to watch now.

Why is Pfizer stock so low compared to Moderna

Moderna (NASDAQ:MRNA) and Pfizer (NYSE:PFE) are both the key beneficiaries of the world's battle against COVID-19. This leaves ample opportunities for both players to continue to capitalize on their global mRNA vaccine leadership for COVID-19, as both companies ready their manufacturing capacity to produce up to 3B doses each in 2022. Therefore, with both companies having their fair share of success in the COVID-19 market, we are rather surprised to observe that MRNA stock has clearly outperformed YTD with its 257% return against PFE's paltry-looking 29% return in comparison.

While there's no way to absolutely know exactly why investors chose to run up Moderna's price to such an extent that made Pfizer's performance seem inferior, we think it may have to do with the "excess baggage" that the company has been carrying.

So, Is PFE Stock A Buy Right Now?

Is Pfizer stock a ‘buy’, ‘sell’ or ‘hold’? Currently, 23 Wall Street analysts provide Pfizer stock projections. According to The Wall Street Journal (as of 2 December 2021), seven analysts recommend a ‘buy’, 15 rate it a ‘hold’ and one gives Pfizer an ‘underweight’ rating. According to analyst sentiment compiled by MarketBeat, the highest analyst price target is $60, while the lowest is $41. According to the algorithmic forecasts of Wallet Investor, PFE stock could trade at $54 over the next 12 months. It’s considered a “bad long-term (one-year) investment”.

It’s important to do your own research and to form your own opinion of the company’s prospects. Analysts’ projections are based on making a fundamental and technical study of the stock’s performance. Past performance is no guarantee of future results.

Whether Pfizer is a suitable investment depends on your own objectives. Always remember that your decision to trade depends on your attitude to risk, your expertise in the market, the spread of your investment portfolio and how comfortable you feel about losing money. And you should never invest more than you can afford to lose.