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Summary
- Pfizer’s depressed valuation and strong product pipeline make it the ultimate buying opportunity for income investors in the healthcare sector.
- Despite a decline in sales of COVID-19 drugs, Pfizer’s operating sales grew by 7% in 2023, driven by new product launches and continued growth.
- Pfizer’s projected EPS growth and anticipated rise in EBITDA margins suggest a positive trajectory for the company’s stock, in my view.
- I calculate a growth potential of 20.8% by the end of 2024 and 50.2% by the end of 2025, based on conservative estimates.
- So I believe investors should consider adding PFE into their long-term portfolio today at the current dividend yield of 6.19% (FY2024 estimate).
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My Thesis
In my opinion, Pfizer Inc. (NYSE:PFE) stock is the ultimate buying opportunity for income investors seeking exposure to the healthcare sector. This is due to the depressed valuation of the company, which comes from negative market sentiment surrounding PFE. With Pfizer’s product pipeline getting stronger and older drugs continuing to generate good FCF, I believe investors should consider buying PFE for their long-term portfolio today at the current dividend yield of 6.19% (FY2024 estimate).
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