tradethepoolpool ads

Will Pfizer Inc.’s (NYSE: PFE) Loaded Drug Pipeline Lead the Company Higher?

Pfizer Inc. (NYSE: PFE) underperformed the broader large cap pharmaceuticals sector in 2017 as the stock gained 18.7%, while the broader sector gained 24.7%. Despite the stock’s subdued rally last year, the company is currently trading at the same price it was trading at in 2000, which means that the company has stagnated for the last 18 years.

Article Summary

Pfizer underperformed the broader big pharma industry in 2017.

The company suffered from numerous patent expiries in the last few years.

The pharma company has a loaded drug pipeline that could drive future growth.

Here’s the trading report on PFE.

The pharmaceutical company is currently facing a major challenge in the form of the expiry of numerous patents for drugs such as Lyrica and Vfend, which are sold in Europe as well as Pristic mainly sold in the USA. The drug-maker is also facing supply problems with its legacy Hospira line of products and is also likely to be negatively affected by the spin-off of the Hospira Infusion Systems division.

The company has faced numerous problems integrating the manufacturing and supply chain systems of Hospira since acquiring the company in September 2015. However, Pfizer has implemented an aggressive cost-cutting program, which is likely to have a positive impact on the company’s bottom line in the fourth quarter.

Pfizer invested heavily in research and development of new drugs in the past few years starting in 2011, which has led to the company releasing a strong portfolio of drugs that could drive the company’s future growth for the next five years. Some of Pfizer’s new drugs include two leukemia treatments approved in both the US and in Europe last year, which are Besponsa/inotuzumab ozogamicin and Mylotarg.

The pharma company currently pays a dividend of 3.5% and has hiked its dividend for the past nine years after slashing it in 2009 in order to finance the acquisition of Wyeth for $68 billion. Pfizer is an attractive stock for most dividend growth investors who would benefit immensely from owning a company that consistently hikes its dividend.

Pfizer’s future prospects look promising given its loaded drug pipeline, its cost-cutting initiatives and its share buyback program.

However, it is not enough to know that a stock is likely to head higher, or lower this year. As an investor or trader, it is important to time your entry and exit points accurately in order to minimize risk and maximize your profit potential.

Stock Traders Daily provides risk-controlled strategies that are tailored to different trading and investment styles in order to protect your investment capital and to generate substantial returns for all our subscribers.

Review Our Trading Strategies.

Triggers may have already come
Support and Resistance Plot Chart for

Blue = Current Price
Red= Resistance
Green = Support

Real Time Updates for Repeat Institutional Readers:

Factset: Request User/Pass

Bloomberg, Reuters, Refinitiv, Zacks, or IB users: Access Here.

Our Market Crash Leading Indicator is Evitar Corte.
  • Evitar Corte warned of market crash risk four times since 2000.

  • It identified the Internet Debacle before it happened.

  • It identified the Credit Crisis before it happened.

  • It identified the Corona Crash too.

  • See what Evitar Corte is Saying Now.

Get Notified When our Ratings Change: Take a Trial