Past performance does not predict future results. Informational only, not investment advice.
Pfizer reported good earnings and is a defensive name positioned well ahead of a volatile week. Author is bullish on near-term upside via calls expiring 11/6.
BOURLA ALBERT (Chairman & CEO at PFIZER INC) reported an open-market purchase of 38,000 shares of PFE at an average $26.34, roughly $1,000,920, in a Form 4 filed 2026-08-12.
Pfizer trades at a steep discount (8.8x forward P/E) versus peers despite solid fundamentals: a 6.5% dividend yield backed by 17 consecutive years of increases, the Seagen acquisition pivoting the company into high-growth oncology, cost-cutting initiatives protecting margins, and a rich 2026 pipeline of 20+ Phase 3 trials. The market has priced in worst-case scenarios around COVID revenue decline and patent cliffs while ignoring the restructuring and long-term value creation.
Pfizer is a deeply undervalued compounder trading at 14.5x P/E despite strategic positioning to exit the COVID downturn. Recent acquisitions (Seagen, obesity) and a government deal de-risk future growth, while the 6.3% dividend provides attractive income on a cheap entry point.
Pfizer's forward P/E of 18 is reasonable given its patent portfolio, cash generation, and ability to pursue new opportunities. The current dividend yield is sustainable and the company is fundamentally sound.
End of results.