2024-05-17 12:18:39 ET
Summary
- Pfizer's earnings and sales have fallen due to decreased demand for COVID-19-related products, leading to a large selling pressure this year.
- The stock price has recently started rebounding from its low point and is showing bullish technical signs for continued momentum.
- Besides these technical signs, I also see fundamental catalysts that could support further price rallies.
- At current prices, the market has already factored in the potential headwinds judging by the pessimistic EPS outlook and the low P/E even assuming such an outlook.
- Its ongoing pipeline, especially the oncology pipeline with the Seagen acquisition, offers further upside potential.
PFE stock: COVID-19 product demand deterioration
Pfizer Inc. ( PFE ) ( PFE:CA ) is facing a challenging year ahead. Earnings and sales fell markedly last year due to the deterioration in demand for its COVID-19-related products. The market probably already saw this coming as the pandemic ran its course over the recent years. However, the impact was even more substantial than what was anticipated. As a result, PFE had to issue multiple downward revisions of its earnings outlook in recent quarters. All told, the current figures point to a sales plummet of ~70% for its Comirnaty vaccine franchise on a year-over-year basis and a 93% drop for its Paxlovid (therapeutic) franchise. The market responded with tremendous selling pressure, as seen in the chart below, pushing the stock price down from ~$32 a year ago to as low as $25. The stock price then recently (in early May) started rebounding from the bottom and moved up to the current level of ~$29....
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Pfizer Stock: Rebound Has Started (Technical Analysis)