Pfizer Isn't Dead Money, Pipeline Execution Can Spark A Rebound

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JR ResearchInvesting Group LeaderFollow5ShareSavePlay(9min)CommentsSummaryPfizer (PFE) remains materially undervalued, with a forward yield near 7% and a Buy rating maintained despite recent underperformance and guidance revisions.PFE's discounted valuation reflects worrying execution risks tied to COVID franchise headwinds, loss of exclusivity, and the need for robust pipeline execution in oncology and obesity.Management's focus is on advancing multiple Phase III studies and commercializing new assets, but near-term valuation upside is unlikely until clearer growth visibility emerges.Yet, robust free cash flow and a sustainable dividend payout ratio support PFE's income appeal, positioning it as a timely growth-plus-income opportunity for patient investors. Alexandros Michailidis/iStock Editorial via Getty Images Pfizer: Still Underperforming, But You Need To Give It Time If I am a Pfizer Inc. (PFE) investor (I used to be, nonetheless), I should have been "elated" at PFE's recent performance against the market, while still gettingThis article was written byJR Research45.83K FollowersFollowJR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP. He identifies attractive risk/reward opportunities supported by robust price action to potentially generate alpha well above the S&P 500. He has also demonstrated outperformance with his picks. He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing. He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities. He runs the investing group Ultimate Growth Investing which specializes in identifying high-potential opportunities across various sectors. He focuses on ideas that has strong growth potential and well-beaten contrarian plays, with an 18 to 24 month outlook for the thesis to play out. The group is designed for investors seeking to capitalize on growth stocks with robust fundamentals, buying momentum, and turnaround plays at highly attractive valuations. Learn moreAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
