Track market-moving stories before they get noisy

NEW YORK--(BUSINESS WIRE)--Pfizer Inc. (NYSE: PFE) today announced detailed results across serotypes from a Phase 2 study (NCT06524414) for its investigational 25-valent pneumococcal conjugate vaccine candidate, PF-07872412 (25vPnC), in infants. In the study, a four-dose series of 25vPnC elicited robust immune responses against all 25 serotypes and showed safety and tolerability comparable to four doses of PREVNAR 20® (Pneumococcal 20-valent Conjugate Vaccine). These findings were shared today.

In the latest trading session, Pfizer (PFE - Free Report) closed at $30.11, marking a +2.28% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.28%. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Coming into today, shares of the drugmaker had gained 6.13% in the past month. In that same time, the Medical sector gained 1.01%, while the S&P 500 gained 0.67%.

The upcoming earnings release of Pfizer will be of great interest to investors. The company's earnings report is expected on November 3, 2026. It is anticipated that the company will report an EPS of $0.72, marking a 17.24% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $16.13 billion, down 3.14% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.95 per share and revenue of $62.49 billion, indicating changes of -8.39% and -0.15%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Pfizer. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.01% lower. Pfizer currently has a Zacks Rank of #3 (Hold).

In the context of valuation, Pfizer is at present trading with a Forward P/E ratio of 9.99. This expresses a discount compared to the average Forward P/E of 16.86 of its industry.

It is also worth noting that PFE currently has a PEG ratio of 2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Large Cap Pharmaceuticals was holding an average PEG ratio of 2 at yesterday's closing price.

The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 217, placing it within the bottom 12% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PFE in the coming trading sessions, be sure to utilize Zacks.com.

Pfizer (PFE -0.47%) is a stock that the market has largely forgotten about for multiple years, languishing and struggling to rise in value despite having strong fundamentals and an attractive valuation.

Recently, however, it's been picking up steam. It's up 18% this year, in what is shaping up to be its best year since 2021, when it rose more than 60% due to strong revenue growth from its COVID vaccine and pill.

Despite its recent gains this year, however, the stock remains down around 30% over a five-year period. It may still have plenty of room to rise even higher.

Image source: Getty Images.

A rotation may be taking place, from tech into healthcareFor much of the past few years, it's been tech stocks that have been the hot buys, due to the enormous opportunities in artificial intelligence. But with interest rates on the rise, investors appear to be thinking twice about the sector of late. In the past few days, there's been a notable shift out of tech and into healthcare, as is evident with the following two exchange-traded funds.

XLK data by YCharts

This is a small sample size, of course, but it may be the start of a new trend emerging, with investors pivoting to safer stocks that offer high yields. The healthcare sector is full of them, with Pfizer being one of the best in that regard.

At 5.8%, the stock offers one of the highest yields on the S&P 500, which is more than five times the index's average of just 1%. It's a huge incentive for income investors in search of recurring income.

Pfizer's stock still looks incredibly cheapAt first glance, investors may scoff at Pfizer's stock because of its seemingly expensive valuation. On a trailing earnings basis, its price-to-earnings (P/E) multiple is extremely high at 37. However, the company has been in the midst of restructuring its operations and has incurred impairment charges and other nonrecurring items, which have weighed on its bottom line, making its earnings worse than they otherwise would be.

PFE Pfizer$29.44-$0.14 (-0.47%)

NYSE · As of 4:00 PM ET 10/19/26

But on a forward basis, its P/E multiple is around 10. That's based on how much earnings analysts expect it will generate over the coming year. That can be a better measure of how expensive the stock truly is, without all the noise in its financials.

While there are still long-term question marks about its growth, the stock remains heavily undervalued and should be trading at a far higher multiple than it is right now. As the market begins to recognize that, the healthcare stock could soar far higher.

Key Takeaways Pfizer's non-oncology results will highlight performance across Primary Care and Specialty Care in Q3.Eliquis demand may boost sales, while lower COVID-19 demand will weigh on revenues.Vyndaqel sales may rise on international strength, while Xeljanz and Enbrel sales likely continue to decline. Pfizer (PFE - Free Report) will announce its third-quarter 2026 earnings on Nov. 3, and investors will be watching the performance of its oncology business closely, as the segment generates nearly 27% of the company's total revenues. Its key cancer medicines include Ibrance, Xtandi, Lorbrena, Braftovi/Mektovi and Padcev.

Apart from oncology, Pfizer has a broad portfolio spanning primary care, vaccines, inflammation and immunology, rare diseases and other specialty therapies. These businesses are organized under the company's Primary Care and Specialty Care segments.

Here’s a closer look at the expected third-quarter performance of Pfizer’s therapies across these two non-oncology business segments.

In Primary Care, alliance revenues and direct sales from Bristol-Myers (BMY - Free Report) for the blood thinner Eliquis are likely to have risen, driven by higher demand trends globally, partially offset by price and generic erosion in some ex-U.S. markets. As regards sales of key vaccine Prevnar, higher sales in ex-U.S. markets are likely to have been offset by the impact of lower demand in the United States.

Pfizer records direct sales and alliance revenues from its partner, BioNTech (BNTX - Free Report) , for the COVID-19 vaccine, Comirnaty. Revenues from Pfizer/BioNTech’s Comirnaty are likely to have declined in the third quarter due to lower U.S. utilization following narrower vaccination recommendations. Sales of the antiviral pill for COVID, Paxlovid, should also have declined due to lower infection rates, which hurt demand trends and lower international government purchases.

Sales of respiratory syncytial virus (RSV) vaccine, Abrysvo, are likely to have gained from launch uptake in some international markets, although vaccination recommendations and competition may constrain growth in United States. Favorable timing of deliveries in some international markets and favorable buying patterns in the United States benefitted sales in the second quarter, which may have reversed in the third quarter. Sales of migraine drug, Nurtec ODT/Vydura, are likely to have benefited from strong demand and prescription growth in the United States.

In the Specialty Care unit, sales of Vyndaqel are expected to have risen, as higher sales in international markets may offset lower revenues in the United States due to the impact of price erosion as a result of new payer contracts in the United States.

Sales of Xeljanz and Enbrel may have declined due to competitive and pricing pressures. In contrast, newer medicines such as Cibinqo could benefit from continued market uptake.

Pfizer’s Key Competitors

In inflammation & immunology, Pfizer’s key competitors include AbbVie, Johnson & Johnson, Amgen and Novartis. In areas such as diabetes, cardiovascular disease, obesity, and other chronic conditions, Pfizer faces competition from Eli Lilly, Novo Nordisk, Merck (MRK - Free Report) , AstraZeneca and Sanofi. In vaccines, it competes primarily with Merck, GSK, Sanofi and Moderna.

Last week, drugmaker Pfizer (PFE +0.48%) declared a $0.43 fourth-quarter dividend, its 352nd consecutive quarterly dividend. The forward annual dividend, therefore, is $1.72 per share, which represents a handsome 5.9% yield. Consider that the current average S&P 500 dividend yield is around 1%, and you'll see how attractive Pfizer's yield is.

But is Pfizer's dividend safe? It's something every income investor absolutely needs to know, because a company's share price typically declines after a dividend cut, for two primary reasons. One, income investors often sell the stock to seek income elsewhere. And two, investors more broadly view a dividend cut as a flashing red warning signal that a company is facing financial stress and weak cash flow.

And Pfizer did cut its dividend in half back in 2009 during the great financial crisis, when many companies were forced to slash their payouts. But since 2010, the company has raised its dividend every year. That's impressive. But is it sustainable?

Patent cliffs loom for Pfizer Like many other drugmakers, Pfizer is facing some significant patent cliffs. Its blood-thinner drug, Eliquis, and its autoimmune disease drug, Xeljanz, lose U.S. patent exclusivity this year. Ibrance, a breast cancer drug, and Xtandi, a prostate cancer drug, will lose their exclusivity next year.

So, Pfizer has to continue to fill its pipeline with potential new drugs. That pipeline leans heavily on new cancer drugs, and it has been expanding that with development programs to treat breast, prostate, bladder, and lung cancers.

Image source: Getty Images.

Fortunately, the company has a robust product portfolio that should keep revenue and cash flow healthy until new drugs are approved and launched. That includes migraine drug Nurtec, which saw 18% growth in the second quarter, and oncology drugs Lorbrena (37% growth) and Padcev (23% growth). Plus, free cash flow, which is needed to pay dividends, has totaled some $11 billion over the past four quarters, more than $1 billion above its dividend payments.

Management has reiterated that, as part of its capital allocation strategy, it is committed to maintaining, and over the longer term, growing the dividend.

Investors are cautiously optimistic: They've bid the stock up more than 17% year this year, which means it has outperformed the S&P 500 index by more than four percentage points. The stock has climbed about 19% over the past 52 weeks.

PFE Pfizer$29.58+$0.14 (+0.48%)

NYSE · As of 4:00 PM ET 10/16/26

So, if you want a high-yielding drug stock, Pfizer could be a good choice. But you have to have confidence that it can replace patent-cliff drugs with new pipeline drugs to keep cash flow healthy enough to pay its juicy dividend.

Blue chip stocks are among the world's more reliable moneymakers. They're the industry giants, the powerhouse players, and the stocks you're supposed to count on.

But that's not always the case. In fact, many of the world's top companies have faltered at some point, but the best ones make it back to the top; that's why they're reliable.

Consider Apple, which was the most valuable company in the world for years until it recently got pushed into second place by Nvidia. It has lost an extreme amount of its value several times in its history, both during market sell-offs and due to internal issues. It lost more than 40% of its value in less than a year between 2012 and 2013, for example, when iPhone demand was sluggish, impacting sales and profits. However, it was trading at a price-to-earnings (P/E) ratio of less than 10, and investors who spotted the bargain were rewarded quickly; it gained 56% within one year, as demand shifted.

Every company goes through ups and downs. Today, despite the strong bull market and 14% gain for the S&P 500 year to date, Nike (NKE +5.21%), Goldman Sachs (GS +1.43%), Intel (INTC -2.80%), Disney (DIS +1.55%), Pfizer (PFE +0.79%), and Home Depot (HD +4.31%) are all at least 20% off their all-time highs. Here's whether each one is a bargain or a value trap.

NKE data by YCharts

1. Nike: 80% off high Nike stock has been pounded during the past few years as it loses market share to up-and-comers. Although it's still the largest athletic apparel and footwear company in the world by far, sales have been dropping for the past few years, and they decreased 4% from last year in the 2027 fiscal first quarter (ended Aug. 31).

Image source: Nike.

A series of missteps brought Nike to this place. Management decided to focus on direct-to-consumer channels rather than wholesale channels, and that allowed competitors to take more space in wholesale outlets like Dick's Sporting Goods. It was also overreliant on its classic franchises and was slow to innovate in sport. Athletes looking for the best technical specifications leaned into brands like Brooks (owned by Berkshire Hathaway and Hoka (owned by Deckers Outdoor). It's also facing major competition from local brands in China, one of its most important markets. New Chief Executive Officer Elliott Hill has made some progress in a rebound, and things are starting to look up. However, management is still forecasting a decline in sales in 2027.

Nike stock trades at a moderate 17 times trailing 12-month earnings, but in this case, it could be a value trap. Nike still has an uphill battle, and there are more compelling stories in the market.

2. Goldman Sachs: 23% off high Goldman Sachs often trades places with JPMorgan Chase as the largest investment bank in the country. It has enjoyed robust activity in the ongoing bull market, particularly this year, driven by a wave of initial public offerings (IPOs). It was one of the lead underwriters for the Space Exploration Technologies IPO, and its stock reached a high in July just after SpaceX went public. However, its stock has fallen since then on bond market volatility and concerns about increasing interest rates.

It reported strong earnings for the third quarter, beating on the top and bottom lines, driven by equities revenue rising 72% over last year and investment banking fees up 21%.

Much of its stock decline is related to overall economic sentiment rather than any internal issue. However, the stock still isn't cheap far as as financial companies go, trading at almost 13 times trailing 12-month earnings and 2.4 times book value, so it's not quite a bargain at this price.

3. Intel: 27% off high Intel may be quite a bit off its all-time high, but it's actually up 163% this year. It has previously floundered as its technology was outdated in the artificial intelligence (AI) era, but it's come roaring back as central processing units (CPUs), the chips it makes to run computers, have become a critical component of agentic AI. Sales rose 25% year over year in the 2026 fiscal second quarter (ended June 27), and management is expecting sales to increase about 18% in the third quarter, after rising only 3% last year.

Intel stock trades at 8.8 times trailing 12-month sales, and it has been struggling with profitability during the past few years. It may continue to benefit from the AI tailwind, but I'd be wary about investing in it right now.

4. Pfizer: 54% off high Pfizer is one of the leading pharmaceutical companies in the country, and it benefited from its COVID-19 vaccine a few years ago, sending the stock soaring. However, it's been under some pressure now that the vaccine isn't driving revenue anymore and is losing some of its patent protections, which eventually happens to all proprietary medications.

PFE Pfizer$29.44+$0.23 (+0.79%)

NYSE · As of 4:00 PM ET 10/15/26

The good news is that revenue is starting to climb again, and it has several promising medications in the pipeline. It lost out on the race for GLP-1 weight-loss medicines, but it recently acquired Metsera, which is developing one.

At the current price, Pfizer trades at 37 times trailing 12-month earnings, given its recent quarterly net losses. However, its dividend yields more than 6%, potentially making it a great buy for long-term passive-income investors.

5. Disney: 39% off high Disney is perhaps the most recognizable name in media and entertainment, but its stock has been dismal for years. The company has struggled with declining broadcast TV revenue, challenges in making its streaming business work, inflation-driven challenges for its parks segment, and a few box-office bombs.

Image source: Disney.

At the current price, it trades at a P/E ratio of 22. That's not so cheap considering its middling performance, but risk-tolerant investors could take a chance on Disney at this price as it restructures and streaming becomes profitable.

6. Home Depot: 32% off high Home Depot is the largest home improvement chain in the world, and while that's usually a good thing, it hasn't been so great in the weak real estate market. Persistent inflation and high interest rates are making it hard for people to buy new homes and complete home renovations. Even though Home Depot is managing fairly well, market sentiment remains very negative, especially now that interest rates are likely to be raised further.

HD Home Depot$308.24+$12.73 (+4.31%)

NYSE · As of 4:00 PM ET 10/15/26

Home Depot stock trades at a P/E ratio of 21, just below its 10-year average, so it's not quite a bargain. However, it's producing comparable sales increases despite the tough environment, which is why it could be worth the price. Its dividend is also yielding a higher-than-average rate of 3.2%. The stock may not recover for a while, but Home Depot is a forever stock for long-term passive income investors.

Pfizer (PFE - Free Report) closed the most recent trading day at $29.21, moving +2.96% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 1.11% for the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1.88%.

Shares of the drugmaker have appreciated by 2.98% over the course of the past month, outperforming the Medical sector's loss of 0.4%, and the S&P 500's gain of 2.06%.

Investors will be eagerly watching for the performance of Pfizer in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 3, 2026. The company's upcoming EPS is projected at $0.72, signifying a 17.24% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $16.13 billion, down 3.14% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.95 per share and a revenue of $62.49 billion, signifying shifts of -8.39% and -0.15%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Pfizer. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.09% decrease. At present, Pfizer boasts a Zacks Rank of #3 (Hold).

Digging into valuation, Pfizer currently has a Forward P/E ratio of 9.63. This denotes a discount relative to the industry average Forward P/E of 15.99.

Also, we should mention that PFE has a PEG ratio of 1.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Large Cap Pharmaceuticals industry currently had an average PEG ratio of 1.93 as of yesterday's close.

The Large Cap Pharmaceuticals industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 206, finds itself in the bottom 17% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Johnson & Johnson (JNJ +0.61%) and Pfizer (PFE +0.37%) both sell prescription medicines, offering investors different ways to own healthcare in 2026. Johnson & Johnson also runs a large medical device business, while Pfizer concentrates on biopharmaceuticals.

Pfizer is adding to its pipeline through deals such as its November 2025 purchase of Metsera, a developer of obesity treatments. Both companies are also managing the loss of exclusivity on major products.

The case for Johnson & JohnsonJohnson & Johnson reports two business segments, Innovative Medicine and MedTech. In fiscal 2025, which ended Dec. 28, 2025, Innovative Medicine generated $60.4 billion of sales and MedTech generated $33.8 billion. The company also sells IMBRUVICA, which it co-commercializes in the U.S. with Pharmacyclics, an AbbVie (ABBV +1.09%) company.

Total sales rose about 6% to $94.2 billion, and net income was $26.8 billion, with a net margin of 28.5%. That margin includes a reversal of about $7 billion in the company's talc litigation reserve, so it would have been lower without that reversal.

At the end of fiscal 2025, total debt of $47.9 billion (loans and notes payable plus long-term debt) relative to $81.5 billion of shareholder equity resulted in a debt-to-equity ratio of about 0.59x. The current ratio was 1.0x. Free cash flow, which J&J defines as operating cash flow less additions to property, plant, and equipment, was nearly $19.7 billion.

In the second quarter of 2026, reported on July 15, sales rose 6.6% to $25.3 billion, and the company raised its 2026 outlook to $100.8 billion to $101.4 billion in reported sales. In April, J&J raised its quarterly dividend to $1.34 per share, its 64th consecutive annual increase.

The case for PfizerPfizer concentrates on biopharmaceuticals. According to its 2025 annual report, it supplies medicines and vaccines to about 200 countries and territories and sells primarily to wholesalers.

Eliquis alone accounted for about $8.0 billion, or 13% of 2025 revenue. Pfizer jointly developed and commercializes its COVID-19 vaccine, Comirnaty, with BioNTech (BNTX -0.13%), and the two companies share gross profits equally.

In 2025, Pfizer's revenue was $62.6 billion, down about 1.6% from $63.6 billion a year earlier. Net income attributable to Pfizer was $7.8 billion, a 12.4% net margin, after about $4.9 billion of intangible asset impairments and $1.1 billion of net charges for certain legal matters recorded in other deductions.

As of Dec. 31, 2025, Pfizer's total debt was $64.8 billion against $86.5 billion in shareholders' equity, a debt-to-equity ratio of about 0.75x on the same total-debt basis used for Johnson & Johnson. The current ratio was 1.2x. Free cash flow, calculated as operating cash flow of $11.7 billion less $2.6 billion of purchases of property, plant, and equipment, was about $9.1 billion. That was less than the $9.8 billion in dividends Pfizer paid that year. Over the 12 months through the second quarter of 2026, calculated free cash flow was about $11.0 billion, compared with about $9.8 billion in dividends.

In the second quarter of 2026, revenue rose about 3% to $15.0 billion, and adjusted earnings per share were $0.77, down from $0.78 a year earlier. Pfizer still posted a net loss of $248 million, mainly due to $4.3 billion in non-cash intangible asset impairments, partly offset by a $1.9 billion gain from the sale of its investment in ViiV Healthcare.

In its second-quarter release, Pfizer raised the midpoint of its 2026 revenue guidance by $500 million to a range of $60.5 billion to $62.5 billion and said that Chief Financial Officer Dave Denton would leave on Aug. 15, with Cecile Guegan serving as interim CFO.

Risk profile comparisonJohnson & Johnson's annual report says XARELTO and STELARA were among the first drugs selected for Medicare price negotiation, with government-set prices beginning in 2026. CMS has indicated that, beginning in 2027, it will remove both from the Selected Drug List. It also expects continued biosimilar launches to hurt STELARA sales.

Johnson & Johnson faces numerous lawsuits over body powders containing talc, primarily JOHNSON'S Baby Powder. On July 27, 2026, it announced a proposed resolution of the ovarian talc litigation that includes a $5.5 billion commitment, with a first payment of no more than $3 billion in 2027, and that depends on the participation of at least 95% of the remaining claims. In October 2025, it announced plans to separate its orthopedics business, with completion targeted within 18 to 24 months.

Pfizer says in its annual report that it anticipates a significant reduction of revenue from patent-based or regulatory exclusivity expiries in 2026 through 2030.

Pfizer's December 2025 outlook assumed about $1.5 billion less revenue in 2026 from products losing exclusivity, and in August, it lowered its expectation for COVID-19 products to about $4 billion from about $5 billion. The obesity programs from Metsera, which Pfizer bought for $65.60 per share in cash plus a contingent value right of up to $20.65 per share, are still in clinical development, so they do not yet offset those expirations.

Valuation comparisonPfizer trades at lower multiples than Johnson & Johnson on both forward earnings and sales.

MetricJohnson & JohnsonPfizerForward P/E22.4x9.3xP/S ratio6.3x2.5xValuation metrics include sourcing from Financial Modeling Prep (FMP) and may differ from other data providers.

While Johnson & Johnson looks like the better buy to me, I'd be a patient buyer, adding over time, because the stock isn't cheap and its proposed talc settlement still needs enough plaintiffs to sign on.

J&J earns money from two different businesses, prescription medicines and medical devices, and its sales are still growing. Management raised its 2026 sales outlook in July, and the company has increased its dividend for 64 consecutive years. That record of steady execution is what I look for in a company I'd plan to own for a long time.

Pfizer is tempting for income investors with a yield near 6%, but the trouble is what sits behind that number. Its free cash flow has covered the dividend over the 12 months through the second quarter of 2026, yet Pfizer anticipates a significant reduction in revenue due to patent and regulatory exclusivity expiries from 2026 through 2030.

A low valuation often reflects that kind of uncertainty, and the second-quarter loss from large impairments shows how a pipeline asset can lose value. The obesity programs it gained with Metsera could change the picture, though they're still in clinical development.

Whichever way you lean, I'd treat either stock as one piece of a larger healthcare allocation, and this guide on investing in healthcare stocks shows how the sector's different parts fit together. I'd plan to hold whichever one I chose for at least five years and keep adding on a regular schedule.

A stock-only portfolio paying over $12,000 a month sounds like a retirement dream, but the income splits into layers with very different levels of reliability. Before you build it, you need to know which part of that yield is real…

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A portfolio built entirely around stocks and equity funds can generate $12,300 a month, or $147,600 a year, in income.  The no-bond design stands out with the 10-year Treasury yielding 5.2%. Using a blended yield of about 7.4% based on trailing distributions and early October 2026 prices, you’d need roughly $1.99 million to generate the target income.

A Low-Yield Anchor That Keeps Raising Its Payout The iShares Core Dividend Growth ETF (NYSEARCA:DGRO) holds U.S. companies with a history of raising dividends, and it charges 0.08% per year. At a 10% weight, it gets $199,155, while its 1.9% trailing yield pays $3,847 a year, the portfolio’s lowest income stream. However, it also adds dividend growth, and its September payout rose from $0.18 per share in 2016 to $0.38 in 2026.

Equal-Weighted High Yielders With Heavy Sector Tilts SPDR Portfolio S&P 500 High Dividend ETF (NYSEARCA:SPYD) holds the 80 highest-yielding S&P 500 stocks in equal weights. Its 15% stake is worth $298,733, and a 4.5% yield turns that into $13,442 a year. No single stock goes much past 2%, so the concentration shows up by sector instead, which helps balance uneven market performance. The screen leans heavily on REITs, utilities, banks, and energy.

Trading S&P 500 Upside for Monthly Option Premium Goldman Sachs S&P 500 Premium Income ETF (NASDAQ:GPIX) owns S&P 500 stocks and sells index call options. The premium it takes in comes at the cost of gains above the strike price (the level at which the fund has agreed to sell). Its 15% weight is $298,733, and at 8.1% it pays $24,276. Monthly payouts over the past year ran from $0.35 to $0.40. Premiums rise when markets get volatile and fall when they calm down.

Nasdaq-100 Premium Income and Its Return-of-Capital Catch NEOS Nasdaq-100 High Income ETF (NASDAQ:QQQI) uses the same approach on the Nasdaq-100. Its 15% piece, $298,733, yields 13.6% and pays $40,566, the most of any holding. Monthly payouts in 2026 ran from $0.61 to $0.66.

In the fiscal year ending May 2025, 94% to 99% of each payment counted as return of capital. Return of capital is part of the investor’s own money coming back, and it lowers cost basis instead of counting as income the fund earned. A rate made up mostly of returned capital measures how much cash goes out, which differs from what the fund earns. That breakdown is also more than a year old.

Together, GPIX and QQQI supply 44% of the portfolio’s income, which concentrates that income in a single options strategy.

Agree Realty’s Monthly Rent Checks and AFFO Coverage Agree Realty (NYSE:ADC) owns 2,825 net-lease retail properties at nearly 100% occupancy and pays monthly. Its 10% weight of $199,155 yields 4.8%, or $9,585 a year. The dividend uses about 70% of 2026 adjusted funds from operations (AFFO), measured at the guidance midpoint. AFFO is a better yardstick than earnings for a landlord because depreciation pushes GAAP earnings well below actual cash flow. The latest raise to $0.267 a month continues a streak of annual increases.

Main Street Capital’s Regular Dividend Versus Supplementals Main Street Capital (NYSE:MAIN | MAIN Price Prediction) is a business development company (BDC) that lends to and invests in the lowest private businesses. At 10%, or $199,155, its 8.1% trailing yield pays $16,044. On its own, the regular $0.265 monthly dividend yields 5.9%. Quarterly $0.30 supplementals make up the rest, and they aren’t guaranteed.

Capital Southwest’s Thin Coverage on Supplemental Payouts Capital Southwest (NASDAQ:CSWC) is a BDC with a portfolio of 99% first-lien loans, which get paid first if a borrower defaults. At a 10% allocation, the $199,155 investment would yield 10.9% and generate about $21,655 a year. Net investment income of $0.59 per share covered the regular $0.58 dividend, but not the full $0.64 payout with the supplemental dividend included. If interest rates fall by 0.75 percentage points, income could drop by $0.19 per share.

Pfizer’s Flat Dividend Ahead of Patent Expirations Pfizer (NYSE:PFE) gets 15%, or $298,733, and yields 6.1%, or $18,175. The quarterly dividend has stayed at $0.43 since early 2025. Shares rose 20% over the past year but are still 15% below three years ago, so the high yield comes more from the price drop than from dividend growth. Dividends took 108% of 2025 free cash flow. Xeljanz loses exclusivity (LOE) in 2026 and Ibrance in 2027. The CEO said “the dividend will be maintained and eventually after the LOE period will start again growing it.” A single company at this weight is the portfolio’s most concentrated risk.

How Much of the Income Rests on Durable Payers The money does come, but only about 39% rests on solid ground: DGRO, SPYD, Agree Realty, and the two BDCs’ regular dividends. The other 61% can change, as options premium makes up 44% of the income, and QQQI’s 27% share has mostly been classified as returned capital. Lastly, Pfizer accounts for 12%, while BDC supplements will cover the rest.

Where Each Holding Belongs for Taxes DGRO and Pfizer pay qualified dividends taxed at 0%, 15%, or 20%. Most REIT and BDC payouts, along with option-premium income, are taxed at ordinary income rates, making Agree Realty, Main Street Capital, Capital Southwest, and GPIX natural fits for an IRA. QQQI’s return of capital defers tax by lowering cost basis, and that benefit works best outside a tax-advantaged account.

Who This Portfolio Fits This setup may be ideal for a retiree with about $2 million who wants monthly cash now and can live with flat income. It fits poorly for anyone who needs income to keep up with inflation for 30 years. Two things to review every year: the return-of-capital share in QQQI’s latest Form 8937 (the IRS filing that reports return-of-capital treatment), and dividend coverage at Pfizer and Capital Southwest.

Contact [email protected] for any questions or corrections.

Pfizer's dividend yield has climbed well above what most blue-chip drugmakers offer, and the reason behind that gap matters far more than the number itself.

Pfizer (NYSE:PFE | PFE Price Prediction) pays a 6.16% dividend yield. For a drugmaker worth roughly $159.5 billion, a number that large works as a warning label. The question for income investors is fairly simple: is that yield a reward for patience, or is the market saying the payout is in trouble?

Why Pfizer’s Yield Looks So Big Yield is the annual dividend divided by the share price. Pfizer pays $1.72 per share a year. When the price falls, the same payment becomes a bigger percentage. Five years ago the stock traded at $32.55, which would yield about 5.28% today. Shares now sit at $27.98, down 14.04% over five years, despite an 18.2% gain in 2026.

The peers make the point clearer. Bristol-Myers Squibb (NYSE:BMY), which has its own patent expiration to worry about, yields 4.2%. Merck (NYSE:MRK), whose growth story still has investors’ confidence, yields just 2.33% and trades at 15 times forward earnings. Pfizer trades at 10 times.

Cash Coverage Is Thinner Than Earnings Suggest Measured against adjusted earnings, the dividend looks comfortable at about 59% of the center of Pfizer’s $2.80 to $3.00 adjusted EPS guidance. Cash flow is tighter. In 2025, operating cash flow of $11.7 billion minus $2.63 billion in capital spending left free cash flow of about $9.08 billion. Dividends cost $9.77 billion, roughly 108% of free cash flow. In the first half of 2026, operating cash flow was $3.45 billion while dividends took $4.9 billion.

The balance sheet carries $63.2 billion of debt, with net debt at 3.26 times EBITDA. Management expects leverage to stay around current level or modestly higher through patent expiration. Pfizer made no buybacks in 2025 and expects none in 2026. The dividend has stayed at $0.43 per quarter since January 2025, confirmed again on October 6, 2026.

Bourla Says the Dividend Will Hold On the second-quarter call, CEO Albert Bourla took the question head on:

“We feel extremely confident that we will, even the most stretched scenarios that we are running, we will be able to maintain our dividend. So I want once and for all to make that clear to all that the dividend will be maintained and eventually after the LOE period will start again growing it.”

That plan faces significant challenges. Paxlovid revenue was $21 million in the quarter, down 95%, and 2026 COVID revenue outlook fell to about $4 billion. A failed Phase 3 trial cost $3.8 billion in write-downs and caused a GAAP quarterly loss. Making up for this, launched and acquired products grew 18%, cost cuts are expected to save $6.7 billion through 2029, and a patent settlement protects Vyndamax in the U.S. until June 2031.

What Has to Go Right Before 2029 To hold the payout, Pfizer needs cost savings on schedule, newer drugs growing at double digits, and its obesity drug reaching first approval by 2028. Risks include late-stage trial failures, U.S. drug-pricing pressure, or leverage rising well past slightly higher.

Here is the answer. The dividend is safe. Pfizer has the earnings buffer, a CEO who has publicly committed to it, and room to borrow while it waits for growth to return. The 6.16% yield is the market charging for that wait.

Investors collect a frozen payout, partly paid for with debt, until growth returns around 2029. That is slow income with a solid floor. The risk is how long the wait lasts.

Contact [email protected] for any questions or corrections.

Sapient Capital LLC cut its position in shares of Pfizer Inc. (NYSE:PFE – Free Report) by 93.6% in the third quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 27,179 shares of the biopharmaceutical company’s stock after selling 399,889 shares during the quarter. Sapient Capital LLC’s holdings in Pfizer were worth $775,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Atwood & Palmer Inc. lifted its stake in Pfizer by 63.8% in the 3rd quarter. Atwood & Palmer Inc. now owns 16,261 shares of the biopharmaceutical company’s stock valued at $464,000 after acquiring an additional 6,332 shares in the last quarter. Apella Capital LLC grew its stake in shares of Pfizer by 22.2% during the 3rd quarter. Apella Capital LLC now owns 56,927 shares of the biopharmaceutical company’s stock worth $1,594,000 after acquiring an additional 10,327 shares in the last quarter. Valeo Financial Advisors LLC grew its stake in shares of Pfizer by 1.9% during the 3rd quarter. Valeo Financial Advisors LLC now owns 172,660 shares of the biopharmaceutical company’s stock worth $4,924,000 after acquiring an additional 3,282 shares in the last quarter. Quintet Private Bank Europe S.A. raised its holdings in shares of Pfizer by 40.6% in the third quarter. Quintet Private Bank Europe S.A. now owns 684,746 shares of the biopharmaceutical company’s stock valued at $19,529,000 after purchasing an additional 197,811 shares during the last quarter. Finally, Vann Equity Management LLC bought a new stake in shares of Pfizer in the third quarter worth $325,000. Institutional investors and hedge funds own 68.36% of the company’s stock.

Trending Headlines about Pfizer Here are the key news stories impacting Pfizer this week:

Positive Sentiment: FDA expands TUKYSA opportunity: The FDA approved TUKYSA (tucatinib) with trastuzumab and pertuzumab as a frontline maintenance treatment for adults with unresectable or metastatic HER2-positive breast cancer. The expanded label moves the drug into an earlier treatment setting, potentially increasing its addressable market and supporting Pfizer’s oncology growth. Pfizer’s TUKYSA Regimen Receives FDA Approval Positive Sentiment: Promising pipeline developments: Positive Phase 3 results for LITFULO in nonsegmental vitiligo showed meaningful facial and total-body repigmentation with favorable tolerability. Pfizer plans regulatory submissions, which could broaden the drug’s immunology-market opportunity. Pfizer Posted Positive Phase 3 Vitiligo Results Positive Sentiment: Potential earnings support: Analysts note Pfizer’s history of earnings surprises and suggest the company currently has favorable conditions for another quarterly beat. Oncology product sales, biosimilars, and late-stage pipeline progress will be important ahead of third-quarter results. Will Pfizer Beat Estimates Again? Neutral Sentiment: Analyst target increase: Cantor Fitzgerald raised its price target from $27 to $28 while retaining a “neutral” rating, implying limited near-term upside and signaling that valuation and execution risks remain balanced. Cantor Fitzgerald Pfizer Price Target Update Negative Sentiment: Dividend and balance-sheet concerns: Pfizer declared a quarterly dividend of $0.43 per share, but commentary warns that the roughly 6% yield, frozen payout, debt, and a recent multibillion-dollar write-down may raise questions about long-term dividend reliability. Pfizer’s Yield and Dividend Risks Negative Sentiment: Restructuring and earnings pressure: Pfizer plans to cut about 330 jobs at its Sicily facility, while analysts describe an increasingly challenging period. The company’s cost reductions and recent loss per share underscore concerns about post-pandemic revenue declines and execution. Pfizer to Cut Around 330 Jobs in Italy Analyst Upgrades and Downgrades Several research analysts recently commented on the stock. Guggenheim reduced their target price on shares of Pfizer from $35.00 to $31.00 and set a “buy” rating for the company in a report on Friday, August 7th. Bank of America lowered their price target on shares of Pfizer from $27.00 to $26.00 and set a “neutral” rating on the stock in a research note on Friday, July 10th. HSBC boosted their price target on shares of Pfizer from $28.00 to $30.00 and gave the stock a “hold” rating in a research report on Thursday, September 10th. BMO Capital Markets reduced their price objective on shares of Pfizer from $34.00 to $30.00 and set an “outperform” rating for the company in a research note on Monday, July 13th. Finally, Weiss Ratings upgraded Pfizer from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, August 31st. Five analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average target price of $28.61. Check Out Our Latest Research Report on PFE

Pfizer Price Performance NYSE:PFE opened at $27.82 on Friday. The stock has a market capitalization of $158.59 billion, a PE ratio of 36.61, a P/E/G ratio of 1.88 and a beta of 0.32. Pfizer Inc. has a 1-year low of $23.62 and a 1-year high of $29.21. The firm has a fifty day simple moving average of $27.62 and a 200 day simple moving average of $26.49. The company has a current ratio of 1.27, a quick ratio of 0.96 and a debt-to-equity ratio of 0.71.

Pfizer (NYSE:PFE – Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The biopharmaceutical company reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.68 by $0.09. The firm had revenue of $15.03 billion for the quarter, compared to analyst estimates of $14.40 billion. Pfizer had a net margin of 6.80% and a return on equity of 19.63%. The company’s quarterly revenue was up 2.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.78 earnings per share. Pfizer has set its FY 2026 guidance at 2.800-3.000 EPS. On average, research analysts expect that Pfizer Inc. will post 2.98 EPS for the current fiscal year.

Pfizer Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Monday, December 7th. Stockholders of record on Friday, November 6th will be issued a $0.43 dividend. This represents a $1.72 dividend on an annualized basis and a dividend yield of 6.2%. The ex-dividend date of this dividend is Friday, November 6th. Pfizer’s dividend payout ratio is presently 226.32%.

Pfizer Company Profile (Free Report)

Pfizer Inc (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, manufactures and commercializes prescription medicines and vaccines. Its research and commercial activities focus on areas including oncology, inflammation and immunology, internal medicine, hospital care and vaccines.

The company’s portfolio includes widely used products such as the Prevnar family of pneumococcal vaccines, Ibrance for certain breast cancers, Eliquis for preventing blood clots, Xeljanz for inflammatory conditions, and Vyndaqel for transthyretin amyloidosis.

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Key Takeaways Pfizer's Tukysa combo won FDA approval for frontline maintenance in HER2-positive breast cancer.Tukysa reduced progression or death risk by 35.9%, with median PFS reaching 24.9 months.The approval expands Tukysa beyond second-line use, adding a chemotherapy-free maintenance option. Pfizer (PFE - Free Report) announced that the FDA has approved its marketed drug, Tukysa (tucatinib), in combination with Roche’s (RHHBY - Free Report) Herceptin (trastuzumab) and Perjeta (pertuzumab) for the maintenance treatment of adult patients with unresectable locally advanced or metastatic HER2-positive breast cancer following induction treatment.

The latest approval expands Tukysa’s use into the frontline setting, providing a chemotherapy-free maintenance treatment option for patients following initial induction therapy. The approval was supported by data from the phase III HER2CLIMB-05 study.

Data from the study showed that treatment with Tukysa in combination with RHHBY’s Herceptin and Perjeta reduced the risk of disease progression or death by 35.9% versus placebo plus Herceptin and Perjeta.

The median progression-free survival was 24.9 months in the Tukysa arm compared with 16.3 months in the placebo arm, representing an 8.6-month improvement.

The safety profile of the Tukysa regimen was generally consistent with its known profile, although hepatotoxicity was more severe.

PFE’s Price PerformanceYear to date, shares of Pfizer have rallied 18.3% compared with the industry’s increase of 11.7%.

Image Source: Zacks Investment Research

The latest FDA nod expands the use of Tukysa beyond its existing second-line indication in HER2-positive metastatic breast cancer. Pfizer noted that the drug is already an NCCN Category 1 second-line plus treatment for patients with HER2-positive metastatic breast cancer in the United States.

The December 2023 acquisition of Seagen strengthened Pfizer’s oncology portfolio by adding four antibody-drug conjugates or ADCs — Adcetris, Padcev, Tukysa and Tivdak.

PFE’s Strong Position in Oncology SpacePfizer is one of the world’s leading oncology drugmakers with a broad portfolio of marketed cancer therapies as well as a deep oncology pipeline.

The company’s oncology revenues grew 5% in the first half of 2026, driven by drugs like Xtandi, Lorbrena, the Braftovi-Mektovi combination and Padcev. Pfizer considers Padcev to be a potential growth driver in the oncology segment and plans to invest in this asset.

The company is also rebuilding its pipeline in oncology. A key candidate in its oncology pipeline is PF-08634404, a dual PD-1/VEGF inhibitor in-licensed from Chinese biotech 3SBio in 2025. Pfizer has initiated nine studies, including two pivotal phase III studies for PF-08634404 in first-line metastatic colorectal cancer and first-line NSCLC. Pfizer aims to establish PF-08634404 as a potential backbone therapy across multiple tumor types. By 2030, Pfizer expects to have eight or more blockbuster oncology medicines in its portfolio.

PFE’s Zacks Rank & Key PickPfizer currently carries a Zacks Rank #2 (Buy).

A top-ranked stock in the biotech sector is Inovio Pharmaceuticals (INO - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Inovio Pharmaceuticals’ 2026 loss per share have narrowed from 99 cents to 72 cents. During the same time, estimates for 2027 loss per share have narrowed from 46 cents to 44 cents. INO shares have lost 33.6% year to date.

Inovio Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 69.05%.

Key Takeaways Pfizer's oncology revenues rose 3% to $4.17 billion in Q2, or 2% operationally.Padcev, Lorbrena and Braftovi-Mektovi may offset declines in Ibrance and Adcetris in Q3.Pfizer is advancing PF-08634404 in nine studies, including two pivotal phase III studies. Pfizer (PFE - Free Report) is a major global player in oncology, with a diversified presence across breast, genitourinary, thoracic, gastrointestinal and hematologic cancers. Its established portfolio of marketed cancer treatments is complemented by a robust pipeline covering a range of therapeutic approaches, including small-molecule drugs, antibody-drug conjugates and immuno-oncology biologics.

Oncology sales comprise around 27% of its total revenues. In the second quarter of 2026, oncology revenues increased 3% to $4.17 billion, with 2% operational growth. Investors will be keen to know how its oncology segment performed in the third quarter when the company announces results on Nov. 3.

Pfizer’s oncology sales in the third quarter are expected to have been driven by higher sales of key drugs like Padcev, Lorbrena and the Braftovi-Mektovi combination, which should make up for declining sales of drugs like Ibrance and Adcetris. Sales of the new drug, Elrexfio, are also likely to have risen in the quarter.

The Zacks Consensus Estimate for Padcev is $692 million, while that for Ibrance is $1.01 billion.

Pfizer has ventured into the oncology biosimilars space and markets six biosimilars for cancer. Its oncology biosimilars are expected to have made a significant contribution to sales growth in the third quarter of 2026, similar to the past few quarters.

Pfizer is also likely to provide updates on its key oncology candidates on the third-quarter conference call. Several oncology candidates have entered late-stage development, such as atirmociclib, sasanlimaband sigvotatug vedotin.

A key candidate in PFE’s oncology pipeline is PF-08634404, a dual PD-1/VEGF inhibitor in-licensed from Chinese biotech 3SBio in 2025. Pfizer has initiated nine studies, including two pivotal phase III studies for PF-08634404 in first-line metastatic colorectal cancer and first-line NSCLC, and additional phase II studies in small-cell lung cancer and gastroesophageal cancers. Pfizer aims to establish PF-08634404 as a potential backbone therapy across multiple tumor types. An update on PF-08634404 is expected on the third-quarter conference call.

Competition in the Oncology SpacePfizer is one of the largest drugmakers of cancer medicines. Other large players in the oncology space are J&J (JNJ - Free Report) , AstraZeneca (AZN - Free Report) , Merck (MRK - Free Report) and Bristol-Myers.

Oncology accounts for nearly 29% of J&J’s total revenues. In the first half of 2026, oncology revenues increased 16.9% to $14.4 billion on an operational basis, fueled by continued momentum for Darzalex and Erleada, although weaker demand for Imbruvica partially offset these gains. J&J’s new cancer drugs, Carvykti, Tecvayli, Talvey and Rybrevant/Lazcluze, are contributing significantly to top-line growth, driven by market share gains.

For AstraZeneca, oncology sales now comprise around 46% of total revenues. Sales in its oncology segment rose 15% at constant exchange rate to $14.1 billion in the first half of 2026. AstraZeneca’s strong oncology performance was driven by medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo).

Merck’s key oncology medicines are the PD-L1 inhibitor Keytruda and the PARP inhibitor Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounts for more than 55% of the company’s pharmaceutical sales. Keytruda recorded sales of $15.8 billion in the first half of 2026, up 4% year over year.

PFE’s Price Performance, Valuation and EstimatesPfizer’s stock has risen 12.5% so far this year compared with an increase of 9.8% for the industry.

Image Source: Zacks Investment Research

From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its five-year mean. Going by the price/earnings ratio, Pfizer’s shares currently trade at 9.48 forward earnings, significantly lower than 17.65 for the industry. However, PFE trades slightly above the stock’s five-year mean of 9.25.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings has risen from $2.97 per share to $2.98 per share, while that for 2027 has risen from $2.94 per share to $2.95 per share over the past 60 days.

Image Source: Zacks Investment Research

Pfizer has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Quarterly financial reports play a vital role on Wall Street, as they help investors see how a company has performed and what might be coming down the road in the near-term. And out of all of the metrics and results to consider, earnings is one of the most important.

We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.

Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.

The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.

The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.

In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.

Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.

Should You Consider Pfizer?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Pfizer (PFE - Free Report) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $0.84 a share, just 26 days from its upcoming earnings release on November 3, 2026.

By taking the percentage difference between the $0.84 Most Accurate Estimate and the $0.75 Zacks Consensus Estimate, Pfizer has an Earnings ESP of +12.30%. Investors should also know that PFE is one of a large group of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

PFE is just one of a large group of Medical stocks with a positive ESP figure. Johnson & Johnson (JNJ - Free Report) is another qualifying stock you may want to consider.

Johnson & Johnson, which is readying to report earnings on October 13, 2026, sits at a Zacks Rank #3 (Hold) right now. Its Most Accurate Estimate is currently $2.71 a share, and JNJ is five days out from its next earnings report.

The Zacks Consensus Estimate for Johnson & Johnson is $2.66, and when you take the percentage difference between that number and its Most Accurate Estimate, you get the Earnings ESP figure of +2.10%.

PFE and JNJ's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

Pfizer is racing towards important patent cliffs. However, the company's new and acquired products, as well as several pipeline candidates, could help it overcome the obstacles ahead.

NEW YORK--(BUSINESS WIRE)--Pfizer Inc. (NYSE: PFE) today announced that the U.S. Food and Drug Administration (FDA) has approved TUKYSA® (tucatinib) in combination with trastuzumab and pertuzumab for the maintenance treatment of adults with unresectable locally advanced or metastatic human epidermal growth factor 2-positive (HER2+) breast cancer following induction treatment. The approval expands the use of TUKYSA to frontline, an earlier stage of metastatic disease, offering a new chemotherapy.

Pfizer Inc. (NYSE:PFE – Get Free Report) declared a quarterly dividend on Tuesday, October 6th. Stockholders of record on Friday, November 6th will be paid a dividend of $0.43 per share by the biopharmaceutical company on Monday, December 7th. This represents a $1.72 dividend on an annualized basis and a dividend yield of 6.3%. The ex-dividend date of this dividend is Friday, November 6th.

Pfizer has decreased its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 16 years. Pfizer has a payout ratio of 55.8% meaning its dividend is sufficiently covered by earnings. Research analysts expect Pfizer to earn $2.95 per share next year, which means the company should continue to be able to cover its $1.72 annual dividend with an expected future payout ratio of 58.3%.

Pfizer Stock Performance Shares of PFE stock opened at $27.48 on Wednesday. The company has a market capitalization of $156.63 billion, a price-to-earnings ratio of 36.16, a P/E/G ratio of 1.84 and a beta of 0.32. Pfizer has a 1-year low of $23.62 and a 1-year high of $29.21. The company has a current ratio of 1.27, a quick ratio of 0.96 and a debt-to-equity ratio of 0.71. The stock’s fifty day simple moving average is $27.50 and its 200-day simple moving average is $26.48.

Pfizer (NYSE:PFE – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The biopharmaceutical company reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.68 by $0.09. Pfizer had a return on equity of 19.63% and a net margin of 6.80%.The firm had revenue of $15.03 billion during the quarter, compared to the consensus estimate of $14.40 billion. During the same period in the prior year, the business earned $0.78 EPS. The business’s revenue for the quarter was up 2.6% on a year-over-year basis. Pfizer has set its FY 2026 guidance at 2.800-3.000 EPS. On average, sell-side analysts predict that Pfizer will post 2.98 earnings per share for the current fiscal year. Hedge Funds Weigh In On Pfizer Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Moody National Bank Trust Division lifted its stake in Pfizer by 3.7% in the third quarter. Moody National Bank Trust Division now owns 86,627 shares of the biopharmaceutical company’s stock valued at $2,471,000 after acquiring an additional 3,061 shares during the last quarter. Legacy Private Trust Co. acquired a new position in shares of Pfizer during the 3rd quarter worth $207,000. Park National Corp OH raised its holdings in shares of Pfizer by 6.4% during the 3rd quarter. Park National Corp OH now owns 257,556 shares of the biopharmaceutical company’s stock valued at $7,345,000 after purchasing an additional 15,475 shares in the last quarter. Baker Tilly Wealth Management LLC lifted its stake in shares of Pfizer by 35.0% in the 3rd quarter. Baker Tilly Wealth Management LLC now owns 12,951 shares of the biopharmaceutical company’s stock valued at $369,000 after purchasing an additional 3,361 shares during the last quarter. Finally, Argent Capital Management LLC acquired a new stake in shares of Pfizer in the 3rd quarter valued at $8,128,000. Institutional investors own 68.36% of the company’s stock.

About Pfizer (Get Free Report)

Pfizer Inc (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, manufactures and commercializes prescription medicines and vaccines. Its research and commercial activities focus on areas including oncology, inflammation and immunology, internal medicine, hospital care and vaccines.

The company’s portfolio includes widely used products such as the Prevnar family of pneumococcal vaccines, Ibrance for certain breast cancers, Eliquis for preventing blood clots, Xeljanz for inflammatory conditions, and Vyndaqel for transthyretin amyloidosis.

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Pfizer Inc. (PFE, Financials) is retaining its quarterly dividend at 43 cents a share, sustaining one of the stock's key attractions for income investors.

Its board declared a fourth-quarter 2026 dividend of $0.43 a share, payable Dec. 7 to shareholders of record at the close of business Nov. 6, the drugmaker said.

At the present rate of payment, Pfizer pays a dividend of $1.72 per share on an annually basis, which translates to a forward dividend yield of about 6.25% when using the company’s latest share price.

That’s an impressive yield, but there’s a significant distinction for investors. Pfizer kept its dividend unchanged this quarter. The larger dividend yield is a function of the company’s current dividend relative to its stock price.

That makes the sustainability of the payment a key concern for investors focusing on income.

Pfizer said it continues to be committed to preserving and, in the longer term, expanding the dividend as part of its capital allocation plan. This will be the company’s 352nd consecutive quarterly dividend payment.

The release doesn’t provide us with any new information on Pfizer’s revenue, earnings or cash flow, so it doesn’t tell us much about the company’s ability to boost its dividend in the future.

But the $0.43 quarterly dividend is still fine for income investors looking for a steady distribution as they wait for Pfizer’s overall business to recover.

The next important date for stockholders is Nov. 6, the record date for the dividend payable Dec. 7.

A plague headline out of Siberia lifted vaccine stocks, and the agencies closest to the case have since described the risk as low. That reversal in sentiment lands hardest on Novavax (NASDAQ:NVAX), since the company’s rally priced a government-purchase scenario…

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A plague headline out of Siberia lifted vaccine stocks, and the agencies closest to the case have since described the risk as low. That reversal in sentiment lands hardest on Novavax (NASDAQ:NVAX), since the company’s rally priced a government-purchase scenario that its product line doesn’t address.

Novavax stock trades at $12.32, down 2% in morning trading. The prior session had delivered a 20% gain for Novavax shares, a figure measured through that session’s close. Meanwhile, Moderna (NASDAQ:MRNA | MRNA Price Prediction) stock is at $207.95, up 2%, which keeps the selling confined to one corner of the vaccine group.

The most diversified name in this vaccine cluster is inching higher as well, with Pfizer (NYSE:PFE) shares posting a muted response. Additionally, the iShares Biotechnology ETF (NASDAQ:IBB), a gauge of the wider biotech sector, is up 0.3%. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY), which tracks the broad market, is up 0.4%.

Health Officials Defuse the Siberian Plague Scare Vaccine and biodefense shares rallied after reports that a worker at a plague research institute in Siberia had died of pneumonia of unknown origin. Traders speculated that increased preparedness could lead to government vaccine purchases, and Novavax stock was swept into that trade alongside other vaccine makers because a smaller developer such as Novavax offered the most direct exposure to that purchase narrative.

Rospotrebnadzor, the Russian public health agency, has since played down those reports. That agency stated that samples contained no microorganisms associated with the worker’s professional duties and described the regional epidemiological situation as stable. Separately, the World Health Organization asserted that the risk to the general population appeared low based on the unofficial information available to it.

Why Novavax Is Unwinding While Moderna Climbs Those assessments removed the premise behind the spike in Novavax stock, which had rested on the idea of emergency government orders, while the company developed Nuvaxovid, a protein-based coronavirus vaccine built around its Matrix-M adjuvant, an ingredient designed to strengthen the immune response. Novavax has no plague vaccine. The pathogen in question is a bacterium, so a government stockpiling scenario tied to this case had little connection to the company’s lineup.

Moderna stock is climbing, which shows the unwind is concentrated in the most speculative corner of the vaccine group. Selling messenger RNA vaccines directly, Moderna carries the manufacturing and commercial risk that goes with its own products. Gains in Moderna stock alongside a pullback in Novavax shares suggest the market is telling a direct vaccine seller from a royalty collector.

What to Watch Next What remains for Novavax once the scare fades is a royalty stream tied to partner sales of Nuvaxovid, plus licensing exposure through Matrix-M. Any further statement from Rospotrebnadzor or the World Health Organization is worth watching, since a change in the official assessment could revive or end the vaccine trade quickly.

Moderna stock faces its own test, because the sympathy bid behind its advance came from the same headline that lifted Novavax. The question for shareholders is whether Moderna stock holds its gains as the plague story fades from the news cycle. Pfizer shares look less exposed to that kind of reversal, given the company’s diversified business and limited reliance on any single vaccine.

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Pfizer (PFE - Free Report) . PFE is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.72. This compares to its industry's average Forward P/E of 17.59. Over the past 52 weeks, PFE's Forward P/E has been as high as 10.81 and as low as 7.15, with a median of 8.58.

We also note that PFE holds a PEG ratio of 0.78. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. PFE's industry has an average PEG of 2.11 right now. Over the last 12 months, PFE's PEG has been as high as 1.24 and as low as 0.53, with a median of 0.83.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PFE has a P/S ratio of 2.45. This compares to its industry's average P/S of 4.15.

These are just a handful of the figures considered in Pfizer's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PFE is an impressive value stock right now.

Key Takeaways J&J's diversified portfolio and Innovative Medicine growth help offset Stelara's patent loss.Pfizer's new launches and acquisitions are driving growth, but major patent expirations loom.J&J leads Pfizer in stock gains and growth, despite Pfizer's lower valuation and higher dividend yield. Johnson & Johnson (JNJ - Free Report) and Pfizer (PFE - Free Report) are two major healthcare companies with significant exposure to oncology. J&J also has a diversified portfolio spanning immunology, neuroscience, cardiovascular and metabolic diseases, pulmonary hypertension and infectious diseases, along with a large medical devices business. Pfizer has established operations in inflammation and immunology, rare diseases and vaccines.

Both companies are navigating, or preparing for, significant loss-of-exclusivity (LOE) pressures that could affect future revenues. Against this backdrop, a comparison of their fundamentals, growth drivers and key risks can provide useful insight into which stock may offer the more compelling investment case today.

The Case for J&J StockJ&J’s biggest strength is its diversified business model, operating through pharmaceuticals and medical devices divisions, which reduces dependence on any single product or market. It has more than 275 subsidiaries and boasts 28 platforms or products with more than $1 billion in annual sales, with the aim of adding even more. Its diversification helps it to withstand economic cycles more effectively. It also boasts strong cash flows and has increased its dividends for 64 consecutive years. J&J believes the depth of its portfolio and pipeline is stronger than ever.

Innovative Medicine segment is the company’s primary growth engine. The segment's sales rose 6.2% organically in the first half of 2026, despite the LOE of the blockbuster drug, Stelara. Growth was driven by J&J’s key drugs like Darzalex, Erleada and Tremfya. New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato also contributed significantly to growth.

J&J’s MedTech growth slowed in the second quarter, reflecting weakness in Cardiovascular, particularly Abiomed due to slow procedure volumes, and continued China VBP headwinds.

The company’s new cancer drugs, Carvykti, Tecvayli, Talvey and Rybrevant/Lazcluze are contributing significantly to top-line growth, driven by market share gains. Its recent pipeline launches, including Inlexzo, Imaavy and Icotyde, are gaining traction and could become significant growth drivers in future quarters.

J&J believes 10 of its new products in the Innovative Medicine segment have the potential to reach peak sales of $5 billion, including Talvey, Tecvayli, Imaavy, Caplyta, Inlexzo, Rybrevant, plus Lazcluze and Icotyde.

J&J expects 2026 to be a year of accelerated growth. It is confident about achieving its target of generating more than $100 billion in revenues in 2026, with $49.4 billion already generated in the first half. It expects sales to continue to improve in 2027, with a “line of sight” to double-digit growth by the end of the decade. J&J believes that it is already achieving this growth. Though J&J’s total revenues are currently rising in a mid-single-digit range, excluding Stelara, its top line grew in a double-digit range in both the first and second quarters of 2026.

J&J also expects its MedTech business to do better in the second half of the year compared with the first, driven by strength in Vision, Orthopedics, Surgery and better performance in Cardiovascular. While the Abiomed softness creates a new overhang, it accounts for less than 2% of sales, and J&J has other top-line drivers to compensate.

J&J faces its share of headwinds like the Stelara patent cliff, the upcoming LOE of key drugs Opsumit and Simponi, and softness in MedTech. Though the litigation issue is close to resolution, it has not yet been fully resolved. However, J&J looks quite confident that it will be able to navigate these challenges.

The Case for PFE StockPfizer's business mix has changed significantly over the past few years. During the pandemic, the company became heavily dependent on COVID-19 products.  However, it is gradually diversifying its portfolio through a combination of internal product launches like Abrysvo, Zavzpret, Elrexfio, Hympavzi, Litfulo and others, strategic acquisitions like Seagen, Metsera and Biohaven and the continued growth of several established brands like Vyndaqel, Padcev and Eliquis.

The company expects its recently launched and acquired products to record continued double-digit growth. Reflecting this trend, sales from these products increased 22% operationally in the first quarter of 2026 and 18% in the second quarter.

Pfizer is one of the world’s leading oncology drugmakers with a broad portfolio of marketed cancer therapies as well as a deep oncology pipeline. Its oncology revenues grew 5% in the first half of 2026, driven by drugs like Xtandi, Lorbrena, the Braftovi-Mektovi combination and Padcev. Pfizer considers Padcev to be a potential growth driver in the oncology segment and plans to invest in this asset.

The company is also rebuilding its pipeline in oncology and obesity, which it believes can drive growth in 2028 and beyond. Pfizer plans an extensive phase III program for berobenatide, its monthly GLP-1 receptor agonist added from last year’s Metsera acquisition. It also plans 10 phase III studies for berobenatide for obesity and obesity-related comorbidities, including knee osteoarthritis and obstructive sleep apnea. Three phase III studies on berobenatide have already begun. Pfizer is targeting the first of a series of potential approvals for berobenatide in 2028. However, in the obesity space, Pfizer lags far behind leaders like Eli Lilly (LLY - Free Report) and Novo Nordisk (NVO - Free Report) .

A key candidate in its oncology pipeline is PF-08634404, a dual PD-1/VEGF inhibitor in-licensed from Chinese biotech 3SBio in 2025. Pfizer has initiated nine studies, including two pivotal phase III studies for PF-08634404 in first-line metastatic colorectal cancer and first-line NSCLC. Pfizer aims to establish PF-08634404 as a potential backbone therapy across multiple tumor types. By 2030, Pfizer expects to have eight or more blockbuster oncology medicines in its portfolio.

Pfizer’s significant cost reduction and efforts to improve R&D productivity measures are also driving profit growth. Pfizer offers one of the highest dividend yields in the sector.

However, the company faces a significant patent cliff later this decade. Pfizer expects a significant negative impact on revenues from the LOE cliff in the 2026-2030 period as several of its key products, including Eliquis, Ibrance, Xeljanz and Xtandi, face patent expirations. The LOE cliff is expected to hurt sales by approximately $1.1 billion in 2026. Sales of its COVID products also continue to decline.

Pfizer’s revenue guidance for 2026 indicates mostly flat to slightly negative year-over-year growth.

Although Pfizer’s 2026 sales guidance indicates minimal growth, the company expects a high single-digit revenue CAGR for five years, starting from year-end 2028. Pfizer expects its recently launched and acquired products, along with a strong pipeline, to help it return to growth from 2029 onward.

How Do Estimates Compare for JNJ & PFE?The Zacks Consensus Estimate for J&J’s 2026 implies a 7.4% year-over-year increase in sales and 7.0% in EPS. The Zacks Consensus Estimate for 2026 earnings has declined from $11.59 to $11.54 over the past 60 days, while that for 2027 earnings has declined from $12.80 per share to $12.64 over the same time frame.

JNJ Estimate MovementImage Source: Zacks Investment Research

The Zacks Consensus Estimate for Pfizer’s 2026 sales and EPS implies a year-over-year decrease of 0.2% and 7.5%, respectively. The Zacks Consensus Estimate for 2026 earnings has risen from $2.95 per share to $2.98 per share, while that for 2027 has risen from $2.85 per share to $2.95 per share over the past 60 days.

PFE Estimate MovementImage Source: Zacks Investment Research

Price Performance and Valuation of J&J & PFEYear to date, J&J stock has risen 23.7%, while Pfizer stock is up 11.7%. The industry has risen 9.5% in the same time frame.

Image Source: Zacks Investment Research

Pfizer looks more attractive than J&J from a valuation standpoint. Going by the price/earnings ratio, J&J’s shares currently trade at 20.69 forward earnings, higher than 17.60 for the industry and the stock’s 5-year mean of 15.65. Pfizer’s shares currently trade at 9.41 forward earnings, lower than the industry but higher than the stock’s 5-year mean of 9.25.

Image Source: Zacks Investment Research

Johnson & Johnson's dividend yield is 2.1%, while Pfizer's is 6.2%.

PFE or JNJ: Which Stock is a Better Pick?J&J and Pfizer have a Zacks Rank #3 (Hold) each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

This makes choosing one stock a difficult task.

J&J enjoys a diversified revenue base, a large cash-generating business and a long history of returning capital to shareholders. It is witnessing steady sales and earnings growth, continued strength in its Innovative Medicine business, and improving fundamentals and outlook. Despite several headwinds, J&J looks quite confident that it will be able to navigate these challenges. J&J has also seen some positive developments recently surrounding its long-running talc litigation.

On the other hand, after taking a hit over the past three years largely due to a sharp decline in sales of its COVID-related products, Pfizer’s stock is gradually recovering. However, the market is still concerned about Pfizer’s ability to replace declining COVID-related revenues and offset upcoming patent expirations through new product launches, pipeline development and contributions from acquisitions.

J&J’s price appreciation, consistent earnings and sales growth, important new launches and pipeline depth make it a clear winner over Pfizer despite the latter’s better valuation and dividend yield.

Ten consecutive earnings beats and a shrinking COVID hangover have Wall Street split on whether Pfizer deserves a breakout or a ceiling, and the answer hinges on a single pipeline deal that could reshape the obesity drug race.

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Our 24/7 Wall St. price target for Pfizer (NYSE:PFE | PFE Price Prediction) is $33.18 over the next 12 months. From today’s $27.60 share price, that implies about 20.2% upside. Our model rates the stock a buy, and its confidence is high.

Metric Value Current Price $27.60 Price Target from 24/7 Wall St. $33.18 Upside/Downside 20.2% Recommendation BUY Confidence Level 90% The COVID drag is getting smaller, and the rest of the portfolio keeps growing. In the second quarter, launched and acquired products grew 18% operationally. With the stock at 10 times forward earnings and a $1.72 annual dividend, shareholders collect income while the obesity and oncology pipeline grows.

Ten Straight EPS Beats Have Lifted Pfizer 16.6% in 2026 Pfizer is up 16.6% year to date and 8.58% over the past year. Over the last month it has slid 3.33%, including 2.85% this week. Shares sit about 5.5% below the $29.21 52-week high and around 22.3% above the $22.57 low.

Second-quarter revenue came in at $15 billion, and adjusted EPS of 77 cents beat expectations. That makes all ten of the past ten quarters ahead of consensus. Stripping out COVID products, revenue grew 5% operationally.

Management raised the 2026 revenue center by $500 million even after cutting COVID expectations to about $4 billion. The FDA also expanded Padcev into muscle-invasive bladder cancer, where Phase 3 data showed a 35% reduction in the risk of death.

Why Bulls See $37 Within Reach Obesity is the biggest swing factor. The Metsera deal gives Pfizer a shot at the first monthly GLP-1 peptide in a market management sizes at $150 billion. Phase 2b data showed placebo-corrected weight loss of up to 12.3%, and Pfizer is aiming a first approval in 2028.

In oncology, the PD-1 x VEGF bispecific 4404 posted a confirmed response rate of about 68%, and the first EZH2 prostate readout is expected in the fourth quarter.

The Vyndamax settlement also extends U.S. exclusivity to June 2031, and cost programs aiming around $9.7 billion in savings through 2029. If these pieces come together, our bull scenario hits $37.

What Could Keep Pfizer Stuck Near $29 Analysts remain conservative, with 16 Holds versus 10 Buy ratings. Generic competition will strip about $1.5 billion from 2026 revenue. Most-Favored-Nation pricing discounts average 50%, and tariffs remain a risk. A lung cancer study missed overall survival. In the bear case, the stock hits only $29.32.

One-time items explain some of the weak GAAP numbers: the second-quarter reported loss of 4 cents per share included a $650 million in-process R&D charge from the InnoVent deal. Adjusted R&D rose 12% operationally, mostly to fund oncology and obesity programs.

Pfizer Trades Below Merck and Close to Bristol Myers Squibb Merck (NYSE:MRK) partners Keytruda with Padcev in bladder cancer and trades at 15x forward earnings with a lower dividend yield.

Bristol Myers Squibb (NYSE:BMY) shares Eliquis with Pfizer and trades at 9x forward earnings.

Company Forward P/E Dividend Yield Pfizer 10x 6.03% Merck 15x 2.28% Bristol Myers Squibb 9x 4.02% At our target, Pfizer would trade at about 11x forward earnings. That is still well below Merck’s multiple, so the peer group makes our target look reasonable, if anything conservative.

Our Model Says Buy, and the Dividend Adds Income Along the Way I’m staying with the 24/7 Wall St. price target of $33.18, a buy rating and 90% confidence. What tips the scale is a single-digit multiple on a business that keeps beating estimates.

I’d view Pfizer as attractive if Metsera’s Phase 3 program stays on schedule and the non-COVID business keeps growing. I’d turn more conservative if pricing reform or tariffs start cutting into the 2026 guidance. For now, the valuation and dividend support our model’s outlook.

Year Price Target from 24/7 Wall St. 2026 $29.14 2027 $33.22 2028 $37.26 2029 $40.98 2030 $44.30 These projections assume Pfizer delivers on management’s goal of returning to growth from 2029 onward. Obesity trial results and drug pricing policy could drove the stock well above or below these figures.

Contact [email protected] for any questions or corrections.

Novo Nordisk is a leading GLP-1 company, but its portfolio beyond that is limited.  Pfizer hasn't entered the GLP-1 race yet, but the company has a diversified business and a long history of success.

NEW YORK--(BUSINESS WIRE)--Pfizer Inc. (NYSE: PFE) today presented results from two Phase 3 trials evaluating the efficacy and safety of LITFULO® (ritlecitinib) as a once-daily oral treatment across a wide range of disease extent. In the two studies, TRANQUILLO 2 and TRANQUILLO, LITFULO 100 mg and 50 mg, respectively, significantly improved facial and total body repigmentation compared to placebo. These improvements were supported by patient-reported outcomes indicating reduced disease severity.