Daily Stock Pick: Pfizer (PFE)
This week, I'm looking for the sixth healthcare 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 a large-cap drug manufacturer- major firm named Pfizer Inc. Their trading ticker symbol is PFE. I last reported on Cardinal Health Inc on February 25, 2019.
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.
Within international sales, emerging markets are a major contributor, representing over a fifth of total company sales.
The company has collaboration and/or co-promotion agreements with Bristol-Myers Squibb Company, Astellas Pharma US, Inc., and Oncolytics Biotech Inc.; licensing agreement with BionTech AG; strategic alliance with Verily Life Sciences LLC; and collaboration agreements with Merck & Co., Inc. and Eli Lilly & Company, as well as with Merck KGaA and Nektar Therapeutics to develop a therapy for treating pancreatic cancer.
Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.
I use three key data points to gauge dividend paying equities or funds 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 three basic keys, however, best tell whether a company has made, is making, and will make money.
PFE Price
Pfizer's price per share closed at $43.84 yesterday. A year ago its price was $36.33. Price rose $7.51 or 20.67% in the past year.
Assuming Pfizer's stock trades in the range of $39.00 to $49.00 this year, Pfizer's recent $43.84 price could rise by $2.16 and go to $46.00 by early July, 2020.
PFE Dividends
Pfizer's most recent quarterly dividend is $0.36 payable, September 3rd.
That $0.36 Q payout equates to an annual dividend of $1.44 which produces a yield of 3.28% based on yesterday's $43.84 closing price.
Gains For PFE?
Adding the $1.44 annual estimated dividend to my $2.16 estimate of Pfizer's price upside shows a $3.60 potential gross annual gain, per share, which will be reduced by costs to trade those shares.
Say we pay a little over $1,000.00 today at the $43.84 recent stock price would buy 23 Pfizer Inc equities.
A $10 broker fee paid half at purchase and half at sale will cost us $0.43 per share.
Subtract that $0.43 brokerage cost from the estimated $3.60 gross annual gain leaves a net gain of $3.17 X 23 shares = $72.91 or a 7.25% net gain on a $1.008.32 investment.
Therefore, Pfizer Inc whose trading ticker symbol is PFE now shows a possible net gain of 7.25% including a 3.28% dividend yield.
Fifteen brokers track Pfizer Inc stock:
Six brokers say "Buy" PFE.
Four brokers say PFE will "outperform" peers.
Five brokers say "Hold" your PFE shares.
Their consensus score of 1.93 equates to "outperform"
Therefore, you can look at Pfizer Inc and see it has made money, is making money, and could net an 7.25% gain including a 3.28% 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 & ...
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I think #pfizer is overvalued. $PFE