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Is It Too Late To Buy Pfizer Stock Right Now?

Encouraging Data From Coronavirus Vaccine Program Is Enticing Investors To Buy PFE Stock.

PFE stock price

Could Pfizer Be A Great Pick For Long-Term Investors?

When it comes to looking for the best stocks to buy, pharmaceutical stocks are usually not the first to come to mind. Now, the coronavirus is continuing to hammer the global economy. And certain pharmaceutical companies are also suffering a beating from the lower drug sales. However, just so we are clear, being in a recession doesn’t mean it’s a bad time to invest in the stock market. After all, haven’t we been hearing that it’s normal for the stock market to be disconnected from the economy? 

Regardless of how long this recession lasts, investing in pharmaceutical stocks with exposure to Covid-19 programs could be a smart move. Big pharmaceutical stocks are particularly attractive to look at because they typically have the significant financial flexibility to weather economic storms. And if you combine a story of large pharmaceutical stocks and the vaccine program, you have a recipe for a major headline. 

Perhaps you’re one of the many investors who are following Pfizer’s (PFE Stock Report) coronavirus vaccine progress closely. And you might be thinking whether now is a good time to buy. You might also be wondering if it’s still too risky to buy right now. That’s considering the uncertainty revolving around the safety and effectiveness of a potential vaccine in late-stage trials. 

Earlier this week, Pfizer announced early positive results from a potential coronavirus vaccine it is currently working with the German-based biotech BioNTech in a phase 1/2 trial held in Germany. The trial is testing the safety, immunogenicity, and optimal dose level of these vaccines. What’s more, the FDA granted a fast-track designation to two of these candidates, BNT162b1 and BNT162b2. Pfizer and BioNtech plan on starting a phase 2b/3 clinical trial for the most promising candidates. The trial will enroll up to 30,000 participants, as soon as late July.

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Inclusion In The Operation Warp Speed A Significant Boost To PFE Stock

Pfizer has become one of the top pharmaceutical stocks to watch. That’s after being selected as part of Operation Warp Speed. This in effect allows the company to receive federal funds, logistical support, and assistance with clinical trials to help it develop its coronavirus vaccine candidates.

President Donald Trump called the federal government’s $1.95 billion deal with Pfizer and BioNTech “a historic agreement” that will help the country distribute a coronavirus vaccine in record-breaking time. “Hopefully the approval process will go very quickly, and we think we have a winner there. We also think we have other companies right behind that are doing very well on the vaccines, long ahead of schedule.” 

[Read More] 2 Pharmaceutical Stocks To Watch In 2020; 1 Up 73.08% YTD

Strategic Restructuring Of Pfizer The Key To Solid Growth 

Pfizer is currently in the midst of spinning off its Upjohn generics unit to Mylan (MYL Stock Report). This will allow it to focus on its core biopharmaceutical segment. During the first quarter, Pfizer’s biopharma segment reported a revenue of about $10 billion, an 11% year-over-year increase. By contrast, revenue from the Upjohn unit came in at around $2 billion, representing a 37% year-over-year decline. 

All in all, the company’s revenue was $12 billion, 7% lower than the prior-year quarter. A strategic restructuring of the generic unit should allow Pfizer to grow its revenue and earnings at faster rates. Furthermore, Pfizer has a dividend yield of 4.3%. Its consistent history of raising its dividends on an annual basis has made it popular with some income investors. As such, the combination of these factors should allow Pfizer to provide solid returns for long term investors. 

Bottom Line

The worldwide efforts to find a vaccine heat up. And the next few months will be critical for Pfizer and BioNtech. A successful vaccine would definitely have a tremendous impact on Pfizer’s future growth. However, no matter how encouraging the early data from the company’s ongoing vaccine trials is, things could still go south from here. For this reason, investors should refrain from pinning all their hopes on Pfizer’s potential to win the coronavirus vaccine race. After all, in the unfortunate event where the vaccine program fails to materialize, investors shouldn’t be discouraged. That’s because the company still has a strong pipeline of drugs that are growing at 3 digits percentages.

By Joe Samuel

Joe Samuel is a dedicated stock market researcher and financial contributor. His love for the stock market started at a young age learning from his grandfather. Joe earned a bachelor of science degree in corporate finance and business management. After finishing college, he went the route of an entrepreneur starting numerous businesses and eventually became a financial contributor to a number of outlets including Seeking Alpha, Invesitng.com, and actively contributes to FactSet. At StockMarket.com, Joe looks for emerging stories. One of his traits is identifying new trends before they become mainstream. Whether it’s a biopharmaceutical company debuting a novel treatment or the next technology start-up developing a new platform, Joe looks to be on the cutting edge of that trend.

After years of living in New York, he made the move to Miami, Florida where he’s become an active member of the finance community. Joe has worked with early-stage companies in marketing and consulting capacities, which has given him an opportunity to see what makes companies tick. His viewpoint is that while corporate news is vital to any investment, it’s what isn’t “right in front of you” that can make a good investment great. His approach to the markets is one that aims to deliver information that might not be well-known. But through deep research and diligence, Joe has written about and been able to uncover time-sensitive information when seconds matter in the stock market today.

Joe enjoys covering several stock market sectors. These include commodities, finance, biotechnology, and technology; specifically AI & machine learning. His no-nonsense approach to the market gives readers a cut and dry view of the news that matters most and topics beginning to emerge as new trends in the stock market. He was early to the table with calls on things like the last gold rush in 2019 and has been able to identify influential events and how they could impact certain industries.

During his free time, he enjoys spending time with his family and polishing up one new stock market trends. He’s also an avid car enthusiast with a passion for classic and muscle cars.