Should I Buy Pfizer (PFE)? Finance YouTuber Analysis

The YouTuber suggests Pfizer is a buy due to its current low valuation (P/E of 12.99, P/B of 1.57) after a significant post-COVID decline, offering a high dividend yield of 7-7.5%. While acknowledging risks like high dividend payout ratio (89%) and declining cash flow, he believes the company's long history and potential for recovery make it an attractive long-term investment, especially given the margin of safety at current prices.

“Hoy vamos a hablar de Pfizer, una acción que para mi gusto está siendo muy castigada desde máximos que tuvo en COVID. Ha bajado en picado y creo que puede ser interesante.”

The analyst recommends Pfizer as a safety investment within the healthcare sector, which is expected to post strong earnings growth. The pharmaceutical industry, in particular, is projected to have blowout earnings.

“within health care you might also look to the major drug makers like Eli Lily ticker Loi and fiser ticker PFE another safety investment would be the Vanguard Total Bond market fund”

Pfizer is presented as a buy for its 12% earnings yield and 4% dividend, having come down into value territory. While COVID vaccine sales have slowed, the company shows 5% growth in other products and has a strong pipeline of drug launches. The analyst suggests it's a good investment for patient investors waiting for sales normalization and growth in other drugs to rebuild revenue.

“so here for investors patient enough to wait out that normalization in sales as growth in those other drugs slowly rebuilds revenue from the covet Peak you can earn a very high four percent dividend while you wait and a strong overall earnings yield”

Pfizer is presented as a potential next major player in the weight loss space, with a once-daily pill expected to launch in 2024 and projected to reach $10 billion in sales by 2030. The YouTuber emphasizes its attractive valuation, trading at just 7.5 times earnings after its vaccine boom, which is significantly below the sector average, and notes its strong pipeline and 4% dividend yield.

“Pfizer took her PFE could be the next one out in the space and with shares reasonably priced coming off of its vaccine Boom the company announced results of a late stage trial in December for a once daily pill that is expected to launch in 2024 and could reach 10 billion in sales by 2030.”

The YouTuber recommends buying Pfizer due to its strong 3.3% dividend yield, global reach, and leadership in drug innovation, particularly in mRNA technology. He highlights its consistent operating margin above 25% and low debt-to-equity ratio, suggesting financial stability despite expected vaccine demand decline.

“More impressive and why I continue to buy Pfizer stock is that the company has been able to do all this while keeping its operating margin consistently above 25 percent.”

The analyst recommends Pfizer as a long-term buy, noting its strong pipeline and relatively attractive valuation at 2.8 times sales compared to its five-year average. While acknowledging that COVID vaccine sales are a smaller part of Pfizer's overall business, he still sees potential for a boost from increased vaccine demand due to the 'triple-demic'.

“Pfizer is one of my favorite drug stocks they have got a great Pipeline and always have a great pipeline so it's a great long-term uh you know long-term stock if you uh if you want to get in on it at this point anyway shares of trading relatively cheaply at 2.8 time sales versus a five-year average of 3.7 time sales on that price to sales basis.”

Pfizer is presented as a strong blue-chip stock with a 3.1% dividend, global reach, and leadership in drug innovation, particularly mRNA technology. The company maintains a robust operating margin above 25% and a healthy debt-to-equity ratio, ensuring consistent returns for decades despite expected vaccine demand drops.

“this one is one that's going to produce those consistent returns for decades”

The analyst would consider buying Pfizer again if it drops below $50 a share, noting its attractive valuation at 4.1 times sales (below its five-year average) and its strong drug pipeline. The company is also generating significant free cash flow, which supports new drug discovery.

“I would consider buying this stock again if it dropped maybe below 50 a share.”

The YouTuber advises against buying Pfizer due to concerns about its weak pipeline, declining margins, and the unsustainability of its dividend coverage post-COVID-19 vaccine boom. While the dividend is currently supported by cash reserves, the underlying business performance is deteriorating, making the stock unattractive despite its high dividend yield.

“dafür dann Rendite jährliche Renditeerwartung zu haben auch wenn ich runterkorrigiert habe von gerade so um die 6% wär mir persönlich zu wenig.”