#5 - Pfizer (NYSE:PFE)
A growth investor may look at Pfizer (NYSE:PFE) and suggest that the party is over. And they may not be wrong. The company’s revenue and earnings soared to record highs in 2021 and they look to break those records in 2022. That’s the reward for being one of the winners in the Covid-19 vaccine race.
But the long-term narrative about the potential of mRNA vaccines is just beginning. And Pfizer has a pipeline in place that is well positioned to take advantage of that.
Plus, the company is a free cash flow machine at the moment. In its most recent quarter it posted $7.42 billion in FCF. That was down from the $10.76 billion it generated in the same quarter in 2021. But the company has still posted over $13 billion in free cash flow for the year which is far above the pace for any year in the past decade other than 2021.
Pfizer currently trades at a P/E ratio of 8.4x earnings which is lower than the sector average. The company also has a dividend with an attractive yield of 3.73% and a payout which has increased every year for the last 11 years.
About Pfizer
Pfizer Inc discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States, Europe, and internationally. The company offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, Zavzpret, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Abrysvo, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands.
Read More - Current Price
- $25.56
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 8 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $32.92 (28.8% Upside)
