If I Could Only Buy and Hold a Single Stock, This Would Be It
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By Lawrence Rothman, CFA – Dec 17, 2025 at 11:47AM ESTKey PointsLower demand for COVID-19 treatments has been hurting Pfizer's revenue.Pfizer also has major products losing patent protection over the next couple of years.Management has been focused internally and externally on rebuilding the pipeline.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: PFEPfizerMarket Cap$145BToday's Changeangle-down(-1.29%) $0.33Current Price$25.20Price as of December 17, 2025 at 12:31 PM ETPfizer's shares look attractive to investors willing to show patience.Stock investors have many options to choose among, of course. These include individual equities, exchange-traded funds (ETFs), and mutual funds. But if I had to pick just one stock, I'd invest in Pfizer (PFE 1.29%). The share price has gotten beaten up over the last few years. That may scare off some investors. However, the company has favorable attributes that put Pfizer's stock at the top of my list. Here's why I believe so strongly in Pfizer's long-term prospects. Image source: Getty Images. Rebuilding the pipeline Pfizer's COVID-19 vaccine drove a jump in revenue a few years ago. The company's 2022 top line reached $101.2 billion. But revenue subsequently dropped as demand for the vaccine waned for several reasons. Third-quarter revenue, adjusted to exclude foreign-exchange translations, dropped 7% compared to a year ago. Management expects revenue of $61 billion to $64 billion for all of 2025. Pfizer produced revenue of $63.6 billion last year. Advertisement The next couple of years look challenging, too. Certain treatments will face increased competition due to patents expiring. Notably, Ibrance (an oncology drug) loses protection in 2027, Eliquis and Vyndaqel (both cardiovascular drugs) will no longer have patent protection in 2028. However, management has been focused on rebuilding the pipeline internally and via acquisitions. Pfizer recently acquired Metsera, which is working on obesity treatments. This would allow the company to compete in the popular and lucrative space, should its drugs receive governmental approval. The potential treatments would have major advantages, such as oral drugs instead of shots and monthly doses, over existing treatments. Getting paid to wait While the company's revenue growth may not prove exciting for a while, Pfizer's shareholders can enjoy the 6.7% dividend yield. The high yield might give some investors pause, since that could indicate it's unsustainable. But management has remained committed to its dividend. More importantly, the company's earnings cover the payout. Pfizer's management expects adjusted earnings per share of $3 to $3.15 this year. That easily covers the $1.72 in annual dividends. That works out to a 57% payout ratio, at the low end of management's earnings guidance. An attractive valuation Replacing revenue from COVID-19 vaccines and drugs with expiring patents remains challenging. However, pharmaceutical companies constantly have to deal with patent cliffs. I expect the company to rebuild the pipeline. While you're collecting healthy dividends, you'll also benefit from the price-to-earnings (P/E) ratio expanding when revenue growth occurs. Along with the revenue drop, Pfizer's stock swooned. Over the past three years (through Dec. 12), the share price dropped 51.3%. The S&P 500, by contrast, gained 69.9% during this time. ExpandNYSE: PFEPfizerToday's Change(-1.29%) $-0.33Current Price$25.20Key Data PointsMarket Cap$145BDay's Range$25.11 - $25.4852wk Range$20.91 - $27.69Volume710KAvg Vol69MGross Margin69.12%Dividend Yield6.74% That price drop has created an attractive valuation. Pfizer's shares currently trade at a P/E multiple of 15, lower than the 10-year median of 17. The stock also looks inexpensive when comparing it to the overall market, with the S&P 500 trading at a P/E ratio of 31. Granted, there's some risk that Pfizer won't effectively rebuild its pipeline. That's why the shares trade at such an attractive level. But this isn't a unique challenge for Pfizer or the pharmaceuticals industry. With the company's resources, track record of producing blockbuster drugs, and Metsera treatments, Pfizer's stock seems like a strong candidate to thrive if investors have the patience to wait for the company to rebuild the pipeline.About the AuthorLawrence Rothman, CFA, has been a contributing Motley Fool stock market analyst since 2019, covering consumer goods and retail stocks. Previously, Lawrence worked on Wall Street and at independent research firms before devoting his attention to finding successful long-term investments for individual investors.TMFLarryrothmanRead NextDec 16, 2025 •By Emma NewberyStock Market Today, Dec. 16: Pfizer Falls After Cutting 2025 Revenue ForecastDec 13, 2025 •By Prosper Junior BakinyForget Teladoc and Buy This Healthcare Stock InsteadDec 12, 2025 •By Prosper Junior BakinyPfizer Is Still Struggling to Replace Its COVID Revenue. Here's What We Could See From the Pharmaceutical Giant in 2026.Dec 9, 2025 •By Reuben Gregg BrewerDown 50%, Should You Buy the Dip on Pfizer?Dec 5, 2025 •By Prosper Junior Bakiny2 Headwinds Facing Pfizer Stock Going Into 2026Dec 2, 2025 •By Prosper Junior Bakiny2 Top Dividend Stocks to Buy Now and Hold For a Decade