Now that biotech has taken a breather, we’re going to go ahead with a new idea to our trading list. Pfizer Inc. (PFE) needs no introduction or research report. The
Company has and likely will continue to prove its worth over the next
several years, as Pfizer literally has its hands in just about every
aspect of the biotech world.
Yet, the stock continues to trade right around valuation levels we find extremely attractive for long-term investors looking to play a little contrarian in the space right now.
Pfizer Inc. discovers, develops, manufactures, and sells healthcare products worldwide. The company operates through Global Innovative Pharmaceutical (GIP); Global Vaccines, Oncology and Consumer Healthcare (VOC); and Global Established Pharmaceutical (GEP) segments. The GIP segment develops and commercializes medicines for various therapeutic areas, including inflammation/immunology, cardiovascular/metabolic, neuroscience/pain, and rare diseases.
The VOC segment develops and commercializes vaccines, as well as products for oncology and consumer healthcare. It provides over-the-counter products comprising dietary supplements under the Centrum, Caltrate, and Emergen-C brands; pain management products under the Advil and ThermaCare brands; gastrointestinal products under the Nexium 24HR/Nexium Control and Preparation H brands; and respiratory and personal care products under the brand names of Robitussin, Advil Cold & Sinus, Advil Sinus Congestion Relief & Pain, Dimetapp, and ChapStick.
The GEP segment offers products that have lost marketing exclusivity in various markets; and branded generics, generic sterile injectable products, biosimilars, infusion systems, and other products.
The company serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, and individual provider offices, as well as centers for disease control and prevention. It has licensing agreements with Cellectis SA and AstraZeneca PLC; collaborative agreements with Eli Lilly & Company, OPKO Health, Inc., BioRap Technologies LTD., Merck KGaA, and Transgene S.A.; and a research and development agreement with the National Cancer Institute to conduct clinical trials to evaluate investigational immunotherapy agents.
The Company also has a partnership with The University of Pittsburgh to develop a computational model to identify the drivers of schizophrenia, Alzheimer’s disease, and related brain diseases.
As you can see, Pfizer is at every turn when it comes to prescription drugs, over-the-counter remedies and new novel medical therapies. Currently trading at a forward P/E of just over 11 and a PEG of just over 2, there’s no question PFE has seen better days from a trading perspective. However, based on what we’re seeing right now, the stock appears to be in the process of developing a bottom worth speculating on.
With that, we’re adding PFE to our current long-term list. We’ll set a short-term SSL just behind its recent low at $32 per share, and we’ll set our target in the idea at $50 per share, which would be a test of the stock’s all-time high. Keep in mind; however, this isn’t necessarily a short-term idea, as much as it is a nice conservative long-term play.
Yet, the stock continues to trade right around valuation levels we find extremely attractive for long-term investors looking to play a little contrarian in the space right now.
Pfizer Inc. discovers, develops, manufactures, and sells healthcare products worldwide. The company operates through Global Innovative Pharmaceutical (GIP); Global Vaccines, Oncology and Consumer Healthcare (VOC); and Global Established Pharmaceutical (GEP) segments. The GIP segment develops and commercializes medicines for various therapeutic areas, including inflammation/immunology, cardiovascular/metabolic, neuroscience/pain, and rare diseases.
The VOC segment develops and commercializes vaccines, as well as products for oncology and consumer healthcare. It provides over-the-counter products comprising dietary supplements under the Centrum, Caltrate, and Emergen-C brands; pain management products under the Advil and ThermaCare brands; gastrointestinal products under the Nexium 24HR/Nexium Control and Preparation H brands; and respiratory and personal care products under the brand names of Robitussin, Advil Cold & Sinus, Advil Sinus Congestion Relief & Pain, Dimetapp, and ChapStick.
The GEP segment offers products that have lost marketing exclusivity in various markets; and branded generics, generic sterile injectable products, biosimilars, infusion systems, and other products.
The company serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, and individual provider offices, as well as centers for disease control and prevention. It has licensing agreements with Cellectis SA and AstraZeneca PLC; collaborative agreements with Eli Lilly & Company, OPKO Health, Inc., BioRap Technologies LTD., Merck KGaA, and Transgene S.A.; and a research and development agreement with the National Cancer Institute to conduct clinical trials to evaluate investigational immunotherapy agents.
The Company also has a partnership with The University of Pittsburgh to develop a computational model to identify the drivers of schizophrenia, Alzheimer’s disease, and related brain diseases.
As you can see, Pfizer is at every turn when it comes to prescription drugs, over-the-counter remedies and new novel medical therapies. Currently trading at a forward P/E of just over 11 and a PEG of just over 2, there’s no question PFE has seen better days from a trading perspective. However, based on what we’re seeing right now, the stock appears to be in the process of developing a bottom worth speculating on.
With that, we’re adding PFE to our current long-term list. We’ll set a short-term SSL just behind its recent low at $32 per share, and we’ll set our target in the idea at $50 per share, which would be a test of the stock’s all-time high. Keep in mind; however, this isn’t necessarily a short-term idea, as much as it is a nice conservative long-term play.
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