In 2019, Pfizer (NYSE:PFE) was just another pharmaceutical company. Then, in 2020 to 2021, it achieved its moment of stardom with the development of its Covid-19 vaccine. It is no small thing to develop a vaccine in such a short time. In less than a year, the company had a vaccine to combat the SARS-CoV-2 virus. The vaccine was the first to be approved by the US and is expected to drive substantial growth in revenue and earnings this year, giving PFE stocks a boost. Even if that scenario doesn’t happen, there are other reasons to be optimistic about Pfizer.
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The vaccine is estimated to generate $ 15 billion in revenue this year. But there is more to Pfizer than its Covid vaccine. It has many other products in the works for years to come.
Let’s take a look at why PFE stocks should be on your radar.
Pfizer is making the right moves in the industry
According to the investor’s filing, the company is already working on 24 anticancer drugs and has more than 275 ongoing clinical trials in the areas of inflammation, oncology and rare diseases.
In addition, Pfizer recently reached an agreement with Celcuity (NASDAQ:CELC) in a license agreement for the treatment of breast cancer. Under the agreement, Celcuity will have exclusive rights to the potential breast cancer drug. Pfizer will receive $ 10 million upfront and up to $ 300 million in royalties on sales.
In addition, the company completed the spin-off of the Upjohn business, allowing Pfizer to focus on its strengths in the pharmaceutical industry.
Pfizer plans to develop the mRNA vaccine business on its own as it sees high potential in the coming year. The pandemic has changed the healthcare industry and Pfizer is taking the right action at the right time. He has a vision for the future that makes PFE stocks a great buy right now.
PFE shares have great potential
Despite the success of the vaccine, the company saw only a small gain in revenue from $ 41.1 billion in 2019 to $ 41.9 billion in 2020. However, revenue is expected to see a massive increase in 2021. The company expects generate $ 61.4 billion in sales. in 2021. Your goal is to get earnings per share of $ 3.15. The company has a market capitalization of $ 215 billion and, considering its sales and income prospects, the stock is currently trading at a low price.
With a bright future and plenty to come next year, at $ 38.62, PFE shares are trading at a discount. It’s a great health care stock to add to your portfolio at a discount.
Some investors are always looking for dividend stocks to generate passive income. Pfizer has that too with a current yield of 4% and a five-year dividend growth rate of more than 6%. The company paid out $ 8.4 billion in dividends in 2020.
The bottom line
PFE shares have great potential to generate income and growth in the coming year. With the success of your Covid-19 vaccine, we will see an increase in revenue that will lift stocks. The company has already signed a contract with the EU for the delivery of 1.8 million Covid-19 vaccines in 2022 and 2023.
Wall Street is bullish on stocks too. Of the 22 analysts through MarketWatch.com, six have a buy rating, while 15 have a hold rating, with a price target of $ 40.62.
The stock of PFE will continue to grow after the pandemic. The company reports first quarter results on May 4. The results should give investors perspective on the future of stocks.
As of the date of publication, Vandita Jadeja did not hold (directly or indirectly) any position in the securities mentioned in this article.
Vandita Jadeja is a CPA and freelance financial writer who loves to read and write about stocks. She believes in buying and holding for long-term profit. Her knowledge of words and numbers helps her write a clear stock analysis.