Daily Stock Pick: Pfizer Inc

This week, I'm looking for the third healthcare sector representative of six for my Ivy portfolio.

That healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major and - specialty & generic; healthcare plans; long-term care facilities; medical care; medical devices; medical distribution; medical supplies.

Today I'm reviewing another large-cap drug manufacturer - major named Pfizer. Its trading ticker symbol is PFE.

Pfizer is one of the world's largest pharmaceutical firms, with annual sales of over $50 billion. Pfizer also spends a leading amount on research and development, close to $8 billion annually. While Pfizer historically sold many types of healthcare products and chemicals, now, prescription drugs and vaccines account for the majority of sales. Top sellers include pneumococcal vaccine Prevnar 13, neuroscience drug Lyrica, cancer drug Ibrance, cardiovascular treatment Eliquis, and immunology drugs Enbrel and Xeljanz. Pfizer sells these products globally, with international sales representing close to 50% of its total sales.

Pfizer Inc. has a strategic alliance with Ochsner Health System; a development agreement with Antares Pharma, Inc.; and a collaboration agreement with Aileron Therapeutics, Inc. It also has collaboration and/or co-promotion agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Merck KGaA; Immunicum AB (publ); Immutep Limited; BioNTech AG; Neofluidics, LLC; Kite Pharma, Inc.; Leap Therapeutics, Inc.; Nektar Therapeutics; Zenith Epigenetics Ltd., and Kineta Immuno-Oncology, LLC.

The company was founded in 1849 and is headquartered in New York, New York.

I use three key data points to gauge the value of any dividend equity-like Pfizer Inc:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

PFE Price

Pfizer's price per share closed at $43.33 yesterday. A year ago its price was $36.26. Price rose  $41.52 per share last year, or almost 19.5%.

Assuming Pfizer's stock trades in the range of $36 to $48 again this year, Pfizer's recent $43.33 price could rise by  $1.67 and go to $45.00 by mid-February, 2020.

PFE Dividends

Pfizer's most recent Quarterly dividend was $0.36 declared in December and payable Friday, March 1.

That quarterly dividend equates to a  $1.44 annual payout and a yield of 3.32% at yesterday's $43.33 closing price.

Gains For PFE?

Adding the $1.44 annual estimated dividend to my $1.67 Pfizer estimated price upside shows a $3.11 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we put a little under $1,000.00 today at the $43.33 recent stock price would buy us 23 Pfizer Inc shares.

A $10 broker fee paid half at purchase and half at sale costs $0.44 per share.

Subtract that $0.44 brokerage cost from the estimated $3.11 gross annual gain leaves a net gain of $2.67 X 23 shares

= $61.41  or a 6.15% net gain on a $996.55 investment.

Therefore, Pfizer Inc whose trading ticker symbol is PFE now shows a possible net gain of 6.15% including a 3.32% dividend yield.

Fifteen brokers cover this stock:

Six say "buy" PFE.

Two say PFE will "outperform" peers

Seven say "hold" on to your PFE shares.

Therefore, you can look at  Pfizer Inc and see it has made money, is making money, and could throw a net gain of 6.15% including a 3.32% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to determine if Pfizer Inc is worth your time and money.

Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com;  www.finance.yahoo.com; analyst median target price by YCharts ...

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