Current Analysis: Pfizer (PFE)

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Pfizer (PFE) is one of the world's largest pharmaceutical firms, with annual sales close to $50 billion (excluding COVID-19 product sales).

While it historically sold many types of healthcare products and chemicals, now prescription drugs and vaccines account for the majority of sales.

Top sellers include the pneumococcal vaccine Prevnar 13, the cancer drug Ibrance, and cardiovascular treatment Eliquis.

Pfizer sells these products globally, with international sales representing close to 50% of total sales. Within international sales, emerging markets are a major contributor.

 The company has collaboration agreements with Bristol-Myers Squibb; Astellas Pharma; Merck Germany; and BioNTech.

Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.

Three key data points gauge Pfizer or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

PFE Price

Over the past year, Pfizer’s share price fell 36.6% from $41.50 to $26.31 as of Wednesday’s market close.

If Pfizer shares trade in the range of $20.00 to $35.00 this next year, its recent $26.31 share price might rise to $30.00 by next year. Of course, Pfizer’s price could drop about the same $3.69 estimated amount or more.

My annual upside estimate of $3.69 however, is $1.67 below the median of one-year target price estimates from 22 analysts tracking Pfizer for brokers.

PFE Dividend

Pfizer has paid variable quarterly dividends since March 1986. Pfizer’s most recent Q dividend of $0.42 was declared on December 14, 2023, for shareholders of record on January 25th and a payout was made on March 1st.

The forward-looking $1.68 annual dividend yields 6.39% at Monday’s $26.31 share price.

PFE Returns

To put it all together, add the Pfizer estimated annual dividend of $1.68 to the estimated price upside of $3.69 to find a $5.37 estimated gross gain for the coming year.

At Monday’s $26.31 share price, a little under $1000 would buy 38 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.26 per share.

Subtracting that likely $0.26 brokerage cost from the $5.37 gross gain reveals a net gain of $5.11 X 38 shares = $194.18 for a 19.4% estimated net gain on the year.

You might choose to pounce on Pfizer Inc. It is a 174-year-old dividend-paying New York-based general drug manufacturing company.  Furthermore, the estimated $63.90 annual dividend income from $1k invested is 2.43 times greater than Pfizer’s recent $26.31 single share price.

The exact track of Pfizers ongoing future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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