Is Now a Good Time to Buy the Dip on Pfizer?

The past three years have been difficult for Pfizer (NYSE: PFE). The pharmaceutical giant's financial results worsened substantially as its coronavirus-related tailwind came to a screeching halt. Investors responded by sending the stock down significantly. Pfizer has lost about 50% of its market value in the past three years. If the stock can bounce back and deliver excellent returns over the long run, initiating a position today might be a great idea. Are there good reasons to think Pfizer has what it takes to recover? Let's find out.Pfizer's top line moved in the wrong direction for several quarters. That's not surprising. The company generated mouthwatering sales from Paxlovid, its COVID-19 treatment, and especially Comirnaty, its vaccine for the disease, in 2021 and 2022. Once the worst of the pandemic started receding, combined revenue from both products fell off a cliff. However, the drugmaker has improved significantly over the past year. In 2024, Pfizer's total revenue increased by a respectable 7% year over year to $63.6 billion. The company's adjusted earnings per share jumped by 69% year over year to $3.11.Despite Pfizer managing to stop the bleeding on the top and bottom lines, its stock still isn't performing well. Why? First, some of the company's revenue last year was due to acquisitions, so it wasn't all organic growth. Second, Pfizer will face significant patent cliffs by the end of the decade. Anticoagulant Eliquis, the rights of which Pfizer shares with Bristol Myers Squibb, remains one of the company's biggest growth drivers, but it will run out of patent exclusivity by 2029.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool