PFIZER COMPANY AND ITS STOCK ANALYSIS AND FORECAST

PUBLISHED Jun 28, 2022, 9:37:56 PM        SHARE

img
imgMuhammad Shoaib

Introduction:

Pfizer Inc. is one of the largest pharmaceutical companies in the world. It was incorporated in the 1860s, and its headquarter is in New York, USA. Its founders are two German immigrants, Charles F.Erhart and Charles Pfizer. Initially, the company and its products were not too famous. Plus, its share price was low. However, the company experienced exponential growth at the beginning of the 21st century. Now it has a handsome amount of shares with high prices in the different stock markets in the USA like NASDAQ, LSE, and NYSE and outside of the USA.

Products:

Pfizer is a well-known worldwide company due to its innovative and quality products. It develops and produces vaccines, medicine, and drugs. The primary purpose of the products is for cardiology, immunology, endocrinology, neurology, and oncology. Pfizer has several records of blockbuster medicines or products. These drugs or products have generated annual revenue of US$2 million. In 2021, 55% of treatment was sold in the USA, and 45% were sold abroad. During the COVID-19 pandemic, Pfizer manufactured Millions of vaccines in five countries, i.e., the U.S., Croatia, Germany, Ireland, and Belgium. These products were not only supplied to their locals but also supplied throughout the world. Plus, it sold the medicines at discounted prices to poor and underdeveloped countries. Pfizer provides its products and services in markets to develop treatments, fitness, cures, and prevention. It works jointly with governments, healthcare providers, and locals to help and give all essential facilities and benefits. Its outstanding products, i.e., medicine or drugs and vaccines, provide value for patients and healthcare providers. It is done through the treatment of diseases and improving patients' health.

STOCK ANALYSIS

Usually, every stock follows a random walk because everybody would have equal information. However, many variables like political, economic, Etc., influence the random walk, and the line gets bullish or bearish. Many variables also affect Pfizer's stock price; that's why it has been in a bearish trend since last year. It never indicates poor performance. The whole global economy suffers from the Russia Ukrainian War, the COVID-19 pandemic, and political conflicts. On the other hand, going through technical analysis of NASDAQ, LSE, NYSE stock markets, Etc., we would come to know that most of the stocks have caught bearish. However, the trend of five years of stock of Pfizer inc is bullish. It's always in positive growth. So we can say this stock is a perfect choice for long-term investment, but it is not so profitable in the short term if we talk about the price. In NYSE: PFE, the current average share price is $51. On 6 June, it was $53. However, on 17 June, the cost was $46. Conclusively, it is bearish throughout the month. About 4.7% of the stock price has been reduced. This month's trend is, more or less, the same as the last six months. But, in the long term, the stock price is constantly rising. In June 2017, the price was $32, $34.6 in June 218, $37 in 2020, 42 in 2021. Hence, the long-term bullish trend shows its robust management system and marketing strategy. Plus, its equity is very high as compared to liabilities.

IS Pfizer stock buy, sell or hold?

It should be sold for the short term. In the long run, buying or holding both is the best option. Because Pfizer is a vast and robust company, it is supported by three reasons. First of all, it can be explained by a simple financial model. By fundamental analysis, we would come to know that Pfizer's financial position, income statement, and cash flow statement are perfect and impressive. Most of the assets are equities; its receivable holding period is six months to five years which is very low. Its debt to equity ratio is very low, i.e., .453. Its liquidity ratio is very high, which is 1.39. Plus, it earns a handsome amount of profit. In a nutshell, its default probability is almost zero. Secondly, Pfizer's earnings per share (EPS) have been raised by 55% in the last year and a half. Many companies were surprised at the rapid growth of Pfizer and how it could sustain itself in the pressurized market situation. It was due to the innovation of coronavirus vaccines. The vaccines were manufactured in large amounts and sold out to most countries worldwide. The approximate sale of coronavirus vaccines was $45 billion in 2021. Pfizer has world-class scientists. So it is not difficult to innovate a new product according to the global situation. Thirdly, Pfizer is a very competent company in the U.S. Still; no pharmaceutical company has been able to beat it. It is known that Sinovac is a very famous company in the U.S., but Pfizer is much better than Sinovac. We can get it through an example; in the last week, a doctor from Hong Kong said, "Even three doses of the Sinovac vaccine could not produce enough antibody response against Omicron and that it had to be boosted by a Pfizer-BioNTech shot ."Hopefully, you understood the point.

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PFE, Buy

Pfizer Inc
Return: -50.84%

PFE, Buy

Return: -50.84%


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