Highlights from Zacks Analyst Blog on Featured Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: NASDAQ.COM
- Pfizer's Challenges: Pfizer's stock has underperformed with a 7.4% increase over the past year compared to the 23.4% growth in the large-cap pharmaceuticals sector, facing pressures from patent expirations on key drugs that could impact future sales, although its non-COVID business is strengthening due to strong demand for new medicines.
- Altria's Strength: Altria's stock has outperformed with a 22.3% increase over the past year, significantly higher than the tobacco industry's 6.6%, benefiting from strong pricing and resilient margins, despite challenges from declining cigarette volumes and increased competition in smoke-free products.
- Newmont's Growth Potential: Newmont's stock has risen 72.5% over the past year, outperforming the gold mining industry at 43.9%, with the company enhancing its asset portfolio through the acquisition of Newcrest and focusing on operational efficiency and shareholder returns, although rising production costs may pressure margins.
- Koil Energy's Strong Performance: Koil Energy's stock has surged 250.5% over the past two years, significantly outperforming the alternative energy sector's 67.7%, driven by strong backlog growth and stable revenues from its expanding service business, although high operating costs and liquidity risks remain concerns.
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Analyst Views on PFE
Wall Street analysts forecast PFE stock price to rise
16 Analyst Rating
5 Buy
11 Hold
0 Sell
Moderate Buy
Current: 26.040
Low
24.00
Averages
28.56
High
35.00
Current: 26.040
Low
24.00
Averages
28.56
High
35.00
About PFE
Pfizer Inc. is a research-based, global biopharmaceutical company. The Company is engaged in the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products worldwide. Its Biopharma segment includes the Pfizer U.S. Commercial Division, and the Pfizer International Commercial Division. Its product categories include oncology, primary care and specialty care. Its oncology products include Ibrance, Xtandi, Padcev, Adcetris, Inlyta, Lorbrena, Bosulif, Tukysa, Braftovi, Mektovi, Orgovyx, Elrexfio, Tivdak and Talzenna. Its primary care products include Eliquis, Nurtec ODT/Vydura, Zavzpret, the Prevnar family, Comirnaty, Abrysvo, FSME/IMMUN-TicoVac, Nimenrix, Trumenba, and Paxlovid. Its specialty care products include Xeljanz, Enbrel (outside the United States and Canada), Inflectra, Abrilada, Cibinqo, Litfulo, Eucrisa, Velsipity, the Vyndaqel family, Genotropin, and others. Its PF-08653944 is an ultra-long-acting fully biased GLP-1 receptor agonist.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Rigel Pharmaceuticals Secures Global Rights for Veppanu Breast Cancer Drug
- Regulatory Hurdle Cleared: Rigel Pharmaceuticals has successfully passed the final regulatory review, paying $70 million to Arvinas and Pfizer to secure global rights for Veppanu, significantly enhancing its competitive position in the breast cancer treatment market.
- Potential Revenue Upside: In addition to the $70 million upfront payment, Arvinas and Pfizer are eligible for up to $320 million in contingent payments based on future development, regulatory, and commercial milestones, providing robust support for Rigel's long-term financial performance.
- FDA Approval Boost: Veppanu has received FDA approval for treating ER+/HER2- advanced or metastatic breast cancer, which not only enhances Rigel's product portfolio but also positions it to enter the rapidly growing cancer treatment market.
- Market Launch Plans: Rigel expects to commercialize Veppanu in August, a timeline that will allow it to quickly seize market opportunities and meet the increasing demand for new therapies, further driving revenue growth for the company.
See More
Pharmaceutical Industry Pressures Germany on Drug Pricing Policy
- Investment Threats: Pfizer recently warned the German Chancellor that its investments in Germany are at risk due to proposed drug pricing policies, illustrating the pharmaceutical industry's escalating strategy of pressuring policymakers through investment threats.
- Investment Cuts: Eli Lilly announced a halving of its planned €2.3 billion investment, while Germany-based Boehringer Ingelheim scrapped expansion plans worth €900 million, both citing concerns over the impact of new legislation on drug pricing, reflecting industry unease in the German market.
- Policy Response: In response to industry pressure, the German government decided to abandon some plans opposed by the industry, shifting to a fixed discount mechanism to reduce uncertainty, although this does not address broader concerns about the pricing environment, highlighting the complexity of policy formulation.
- European Market Competition: Analysts noted that the pharmaceutical industry's reaction in Germany is more reactive compared to the proactive strategy seen in Britain, indicating a diminishing appeal of the European market, especially under the competitive pressure from the U.S. market, where pricing policies are increasingly challenging for European drug pricing strategies.
See More
Highlights from Zacks Analyst Blog on Featured Stocks
- Pfizer's Challenges: Pfizer's stock has underperformed with a 7.4% increase over the past year compared to the 23.4% growth in the large-cap pharmaceuticals sector, facing pressures from patent expirations on key drugs that could impact future sales, although its non-COVID business is strengthening due to strong demand for new medicines.
- Altria's Strength: Altria's stock has outperformed with a 22.3% increase over the past year, significantly higher than the tobacco industry's 6.6%, benefiting from strong pricing and resilient margins, despite challenges from declining cigarette volumes and increased competition in smoke-free products.
- Newmont's Growth Potential: Newmont's stock has risen 72.5% over the past year, outperforming the gold mining industry at 43.9%, with the company enhancing its asset portfolio through the acquisition of Newcrest and focusing on operational efficiency and shareholder returns, although rising production costs may pressure margins.
- Koil Energy's Strong Performance: Koil Energy's stock has surged 250.5% over the past two years, significantly outperforming the alternative energy sector's 67.7%, driven by strong backlog growth and stable revenues from its expanding service business, although high operating costs and liquidity risks remain concerns.
See More
Pfizer Expects to Return to High Growth by 2029
- Future Growth Outlook: CEO Albert Bourla anticipates that Pfizer will enter a five-year period of high single-digit revenue growth starting in 2029, reflecting the company's optimistic outlook for its future performance.
- Patent Cliff Delayed: Recent settlements regarding Vyndamax have pushed its patent expiration to 2031, alleviating concerns about a steep revenue decline previously expected in 2029, as the company now forecasts stable product sales from 2028 through mid-2031.
- Increased R&D Investment: Pfizer plans to initiate 20 pivotal studies this year and expects four regulatory decisions in 2026, marking significant advancements in its R&D efforts that could lay the groundwork for future revenue growth.
- Attractive Stock Valuation: Despite a more than 30% decline in stock price over the past five years, Pfizer's current valuation at just nine times its estimated future earnings, combined with a high dividend yield of 6.6%, suggests that now may be an opportune time for long-term investors to consider buying the stock.
See More
Pfizer's Optimistic Future Growth Outlook
- Future Growth Expectations: Pfizer's CEO Albert Bourla expressed optimism during the Q1 earnings call, predicting a five-year period of strong growth starting in 2029, with revenue growth rates projected in the high single digits, indicating management's positive outlook for the company's future.
- Patent Extension Benefits: Recent settlements regarding Vyndamax have pushed its patent expiration to 2031, alleviating concerns as the company now expects stable product sales from 2028 to mid-2031, rather than the previously anticipated steep decline in 2029 revenue.
- Increased R&D Investment: Pfizer plans to initiate 20 pivotal studies this year and anticipates four regulatory decisions in 2026, which Bourla describes as a pivotal year for R&D, highlighting the company's ongoing commitment to enhancing its pipeline.
- Long-Term Investment Value: Despite a more than 30% decline in stock price over the past five years, Pfizer's high dividend yield of 6.6% and a price-to-earnings ratio of just nine times its estimated future earnings suggest that now may be an opportune time for long-term investors to consider buying the stock, especially for those willing to be patient.
See More
Analysis of S&P 500 Index Fund Investments
- Investment Recommendation: Most financial advisors recommend low-fee S&P 500 index funds like the Vanguard S&P 500 ETF (VOO) and SPDR S&P 500 ETF (SPY) for their convenience, although they are not perfect, they remain a top choice for many investors.
- Concentration Risk: The top 10 components of the S&P 500 account for 39% of its total market value, with weights of 7.43% for Nvidia, 6.59% for Alphabet, and 6.48% for Apple, indicating a high concentration of investor funds in a few companies, which increases market volatility risk.
- Alternative Investment Options: The Invesco S&P 500 Equal Weight ETF (RSP) offers a more balanced investment approach compared to standard market-cap-weighted funds, with a 15-year average annual return of 12%, lower than Vanguard's 14.4%, but may hold its value better during market downturns.
- Long-Term Return Potential: While the Vanguard S&P 500 ETF has higher long-term returns, the Motley Fool analyst team suggests that there are currently 10 other stocks that could provide higher returns, prompting investors to consider these potential high-yield opportunities when making investment decisions.
See More
Rigel Pharmaceuticals Secures Global Rights for Veppanu Breast Cancer Drug
- Regulatory Hurdle Cleared: Rigel Pharmaceuticals has successfully passed the final regulatory review, paying $70 million to Arvinas and Pfizer to secure global rights for Veppanu, significantly enhancing its competitive position in the breast cancer treatment market.
- Potential Revenue Upside: In addition to the $70 million upfront payment, Arvinas and Pfizer are eligible for up to $320 million in contingent payments based on future development, regulatory, and commercial milestones, providing robust support for Rigel's long-term financial performance.
- FDA Approval Boost: Veppanu has received FDA approval for treating ER+/HER2- advanced or metastatic breast cancer, which not only enhances Rigel's product portfolio but also positions it to enter the rapidly growing cancer treatment market.
- Market Launch Plans: Rigel expects to commercialize Veppanu in August, a timeline that will allow it to quickly seize market opportunities and meet the increasing demand for new therapies, further driving revenue growth for the company.
See More
Pharmaceutical Industry Pressures Germany on Drug Pricing Policy
- Investment Threats: Pfizer recently warned the German Chancellor that its investments in Germany are at risk due to proposed drug pricing policies, illustrating the pharmaceutical industry's escalating strategy of pressuring policymakers through investment threats.
- Investment Cuts: Eli Lilly announced a halving of its planned €2.3 billion investment, while Germany-based Boehringer Ingelheim scrapped expansion plans worth €900 million, both citing concerns over the impact of new legislation on drug pricing, reflecting industry unease in the German market.
- Policy Response: In response to industry pressure, the German government decided to abandon some plans opposed by the industry, shifting to a fixed discount mechanism to reduce uncertainty, although this does not address broader concerns about the pricing environment, highlighting the complexity of policy formulation.
- European Market Competition: Analysts noted that the pharmaceutical industry's reaction in Germany is more reactive compared to the proactive strategy seen in Britain, indicating a diminishing appeal of the European market, especially under the competitive pressure from the U.S. market, where pricing policies are increasingly challenging for European drug pricing strategies.
See More
Highlights from Zacks Analyst Blog on Featured Stocks
- Pfizer's Challenges: Pfizer's stock has underperformed with a 7.4% increase over the past year compared to the 23.4% growth in the large-cap pharmaceuticals sector, facing pressures from patent expirations on key drugs that could impact future sales, although its non-COVID business is strengthening due to strong demand for new medicines.
- Altria's Strength: Altria's stock has outperformed with a 22.3% increase over the past year, significantly higher than the tobacco industry's 6.6%, benefiting from strong pricing and resilient margins, despite challenges from declining cigarette volumes and increased competition in smoke-free products.
- Newmont's Growth Potential: Newmont's stock has risen 72.5% over the past year, outperforming the gold mining industry at 43.9%, with the company enhancing its asset portfolio through the acquisition of Newcrest and focusing on operational efficiency and shareholder returns, although rising production costs may pressure margins.
- Koil Energy's Strong Performance: Koil Energy's stock has surged 250.5% over the past two years, significantly outperforming the alternative energy sector's 67.7%, driven by strong backlog growth and stable revenues from its expanding service business, although high operating costs and liquidity risks remain concerns.
See More
Pfizer Expects to Return to High Growth by 2029
- Future Growth Outlook: CEO Albert Bourla anticipates that Pfizer will enter a five-year period of high single-digit revenue growth starting in 2029, reflecting the company's optimistic outlook for its future performance.
- Patent Cliff Delayed: Recent settlements regarding Vyndamax have pushed its patent expiration to 2031, alleviating concerns about a steep revenue decline previously expected in 2029, as the company now forecasts stable product sales from 2028 through mid-2031.
- Increased R&D Investment: Pfizer plans to initiate 20 pivotal studies this year and expects four regulatory decisions in 2026, marking significant advancements in its R&D efforts that could lay the groundwork for future revenue growth.
- Attractive Stock Valuation: Despite a more than 30% decline in stock price over the past five years, Pfizer's current valuation at just nine times its estimated future earnings, combined with a high dividend yield of 6.6%, suggests that now may be an opportune time for long-term investors to consider buying the stock.
See More
Pfizer's Optimistic Future Growth Outlook
- Future Growth Expectations: Pfizer's CEO Albert Bourla expressed optimism during the Q1 earnings call, predicting a five-year period of strong growth starting in 2029, with revenue growth rates projected in the high single digits, indicating management's positive outlook for the company's future.
- Patent Extension Benefits: Recent settlements regarding Vyndamax have pushed its patent expiration to 2031, alleviating concerns as the company now expects stable product sales from 2028 to mid-2031, rather than the previously anticipated steep decline in 2029 revenue.
- Increased R&D Investment: Pfizer plans to initiate 20 pivotal studies this year and anticipates four regulatory decisions in 2026, which Bourla describes as a pivotal year for R&D, highlighting the company's ongoing commitment to enhancing its pipeline.
- Long-Term Investment Value: Despite a more than 30% decline in stock price over the past five years, Pfizer's high dividend yield of 6.6% and a price-to-earnings ratio of just nine times its estimated future earnings suggest that now may be an opportune time for long-term investors to consider buying the stock, especially for those willing to be patient.
See More
Analysis of S&P 500 Index Fund Investments
- Investment Recommendation: Most financial advisors recommend low-fee S&P 500 index funds like the Vanguard S&P 500 ETF (VOO) and SPDR S&P 500 ETF (SPY) for their convenience, although they are not perfect, they remain a top choice for many investors.
- Concentration Risk: The top 10 components of the S&P 500 account for 39% of its total market value, with weights of 7.43% for Nvidia, 6.59% for Alphabet, and 6.48% for Apple, indicating a high concentration of investor funds in a few companies, which increases market volatility risk.
- Alternative Investment Options: The Invesco S&P 500 Equal Weight ETF (RSP) offers a more balanced investment approach compared to standard market-cap-weighted funds, with a 15-year average annual return of 12%, lower than Vanguard's 14.4%, but may hold its value better during market downturns.
- Long-Term Return Potential: While the Vanguard S&P 500 ETF has higher long-term returns, the Motley Fool analyst team suggests that there are currently 10 other stocks that could provide higher returns, prompting investors to consider these potential high-yield opportunities when making investment decisions.
See More
