3 Reasons Why Pfizer Looks Like a Product You Can Buy Right Now

If you’re looking for an undervalued growth stock to buy right now, Pfizer (PFE 0.47%) It is an investment that should be at the top of your list. While the company has a difficult road ahead, I am optimistic that it can continue to achieve good growth with the investments and moves it has made in recent years.

Investors may view the company negatively, assuming the business will go out of business due to COVID-related sales declines and patents expiring on key drugs. But this is probably far from the case. Here are three reasons why taking a chance on this struggling stock is potentially a great move for you today.

Pfizer working on weight loss drug

Artificial intelligence (AI) is in tech stocks, but weight-loss treatments in healthcare are setting companies’ valuations on fire. Pfizer is hoping to capitalize on the excitement as it is feverishly working on a weight-loss pill that it believes could be one of the first pills to hit the market soon. While there are approved injectable weight loss treatments on the market, such as Zepbound and Wegovy, there may be an even greater opportunity for weight loss pills.

Pfizer has a pill in development called danuglipron; This pill is still in its infancy but has proven to be well tolerated and safe. The company abandoned the drug’s two-dose regimen due to side effects and moved forward with daily dosing instead.

In a phase 2b trial, the two-dose version helped people lose up to 13% of their body weight over a 32-week period. Dauglipron has the potential to be a game-changer in business, as the obesity drug market could be worth $200 billion if the daily version achieves similar success without significant side effects.

Its business is growing in many areas

What makes Pfizer a great investment is its diversity. This is evident in Pfizer’s latest earnings figures, with Pfizer achieving strong growth in many areas. The company’s revenue in the first nine months of 2024 increased by 2% to $45.9 billion.

That’s pretty impressive when you consider that Pfizer has experienced significant declines in drug sales related to COVID-19. COVID vaccine Comirnaty’s revenue is down 66% this year. But in specialty care, revenue rose 11%, and in oncology, the company got a boost from drugs from Seagen, where revenue rose 25%.

Pfizer still faces headwinds from losing patent protection on key drugs in the coming years, including Eliquis and Vyndaqel, but its diverse operations and focus on investing in growth opportunities puts it in a strong position to weather the storm.

High returns and low valuation offer reasons to be patient

There is some uncertainty about how things will go for Pfizer in the future, but the reason to remain patient is the high dividends the healthcare industry is currently offering investors. Pfizer’s yield is around 6%; That’s more than four times what you get with Pfizer. S&P 500 The return of the index is 1.3%.

Moreover, with stock trading forward price-earnings multiplier You’re buying Pizer shares at a steep discount out of 9. there is something good margin of safety We are there for investors who can reduce the risk involved in holding stocks in this environment of uncertainty.

Pfizer’s low price may not last long

As Pfizer continues to deliver strong results and improve drugs in its pipeline, it may inevitably prevail growth investors They may see this as a very risky investment right now. When this happens, a rally may occur as the struggling stock may be overdue for a strong bull run.

If you’re willing to be patient, Pfizer may be one of the best stocks to have in your portfolio right now.