Should I Invest in Pfizer Stock?
Should I invest in Pfizer stock or not? This is a question that many American investors are asking at this very moment. In fact, Pfizer (NYSE: PFE) is at the forefront of the fight against the coronavirus. Its vaccine was the first to make headlines and it’s set to become available to the public in a matter of weeks.
However, is it smart to add Pfizer to your investment portfolio? Let’s take a closer look at one of the world’s largest pharmaceutical companies to help you make the right investment decision.
Should I Invest in Pfizer Stock or Not?
The coronavirus pandemic has affected all aspects of life in America. The country has been hit harder than anywhere else in the world. And the case spikes are out of control during this holiday season.
But the light is slowly starting to peak its head through the clouds. And this is all due to the recent vaccine advancements. In addition, Pfizer is leading the charge.
In early November, Pfizer announced its COVID-19 vaccine was 95% effective and could be ready for distribution before the end of the year. The company, along with its partner BioNTech (Nasdaq: BNTX), submitted the data to the Food and Drug Administration (FDA) for emergency use authorization.
The press began flooding in and investors took notice. Should I invest in Pfizer stock? Will this be the largest market mover going forward?
Practically every investor was waiting for the first biotech company to produce an effective, market-ready vaccine. And Pfizer’s vaccine has come much sooner than original expectations.
We are now inching closer to deployment of the vaccine in the U.S. and other countries the world over. However, this news didn’t immediately make waves within the stock market.
Pfizer stock was victim to market volatility in November despite the vaccine news. The stock price remained steady in the upper $30 range throughout the month. There was no major spike that most of us came to expect from the first vaccine candidate.
It’s now at just over $40 a share as Christmas creeps closer. But a lot could, and most certainly will, happen over the next few weeks. The most critical days are ahead. The FDA is set to hold hearings for Pfizer and the vaccine could reach frontline healthcare workers soon after.
Investing in Pfizer Is More Than A Vaccine
The news will continue to center around the COVID-19 vaccine. And rightfully so. But Pfizer is much more than the vaccine and its stock will reflect this notion.
For starters, Pfizer has a $224 billion market cap. And in 2019 alone, the company had eight drugs that each brought in at least $1 billion in sales. Pfiizer’s top three drugs accounted for 29% of the company’s total revenue. This includes a pneumonia vaccine, a cancer drug and a blood thinner.
Unfortunately, not all the data is pointing in the right direction. Sales growth has been unpredictable over the last decade, with only two years of positive annual growth in the past nine years.
Sales declined 4% in 2019 as well. And despite the vaccine, sales are expected to drop another 5% in 2020. Investors will have to consider these factors when they ask the question, “should I invest in Pfizer stock?”
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Should I invest in Pfizer stock or keep a close eye on the market for now? The answer will be different for everyone depending on each individual’s investment strategy. Nevertheless, you shouldn’t take your eyes off this stock’s movement going forward.