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- Pfizer’s stock underperforms the S&P 500, facing patent expirations and competition, yet offers a 6.3% forward dividend yield.
- Despite a positive Q3 earnings surprise, profitability remains weaker than pre-pandemic levels, and valuation analysis shows the stock is fairly valued.
- Pfizer’s oncology market share is modest, and its financials are weaker compared to leading competitors.
- High R&D spending and strong operating cash flow support potential new products and sustainable high dividend yield, but I maintain a ‘Hold’ recommendation.
Introduction
Pfizer (NYSE:PFE) continues performing weak compared to the S&P 500 index with a negative total return since my previous neutral call was published. The stock now offers a 6.3% forward dividend yield.
Coming from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental analysis of public companies paid off and now I feel very confident in my investment decisions. My hands-on experience shaped deep understanding of risk, reward and the delicate balance between these two variables. Driven by a desire to share my insights and contribute to the investor community, I embark on this new chapter with Seeking Alpha. My articles will be crafted with clarity and precision, devoid of jargon and fostering accessibility for investors of all experience levels. My background in IT grants me a valuable perspective, particularly when navigating the complexities of technology stocks. Yet, my pursuit of knowledge extends beyond the realm of silicon, encompassing diverse sectors and uncovering promising prospects across the economic landscape. Whether you are a seasoned investor seeking fresh perspectives or a nascent one embarking on your financial voyage, I extend a warm invitation to join me on this intellectual journey. Through collaborative exploration and insightful analysis, let us unlock the secrets of the market and chart a path towards shared financial success.
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