Should You Invest in Pfizer

PHOTO CREDIT: Pfizer

OVERVIEW

Pfizer Incorporation is a company based in the United States. The company designs, manufactures, and sells a wide range of pharmaceutical products to individuals, companies, and governments around the world. The company manufactures drugs like the COVID-19 vaccine, Advil, Lyrica, and many others. The company was founded in 1849.

Why You Should?

  1. Pfizer was the first company in the United States to get their COVID-19 vaccine approved. Because of this early approval, the company got a head start on other competitors and started to sell a large number of COVID-19 vaccines around the world. Over the entire year, the company expects to sell over 33 billion dollars in vaccines.
  2. Pfizer is also starting to sell booster shots in the United States. Though the FDA has just approved it for older people and people at high risk. However, more booster shots will be approved in the future for more groups, something that will further increase the demand for vaccines and will benefit the company’s sales. This will benefit the company and its investors.
  3. Other than the COVID-19 vaccine, the company continues to see strong demand for its other drugs. Some of the other products that the company makes are Advil and Lyrica drugs, among several others. This strong pipeline of future drugs will complement the COVID-19 vaccines and offer strong results for the company in the mid to long term. This will also benefit investors.
  4. Pfizer expects strong mid to long-term growth because of the COVID-19 vaccine. Only a small portion of the world’s population is against the COVID-19 virus. The demand for vaccines has been sky high and will continue to remain like that until the bulk of the world’s population is vaccinated. For example, the company will look to see triple-digit revenue growth this year.
  5. Pfizer also offers investors a great dividend. At the moment, the company offers a dividend of $1.56, or 3.55% per stock, every year. In addition to this high amount, the company has historically continued to raise the dividend for its investors. A growing dividend will benefit investors looking for high-yielding investments.

Why You Should Not?

  1. The company faces tough competition in the pharmaceutical industry. Some of these competitors include Moderna, Regeneron, AbbVie, Abbott Labs, and many others. This competition might hurt the company and its investors in the future.
  2. Pfizer continues to face a negative political environment in the United States. The Biden administration, Democrats, and Republicans want to pass some legislation in order to reduce the cost of some pharmaceutical drugs. If any legislation to reduce the cost of drugs. This might hurt the company and its investors in the future.

MY OPINION

I think that Pfizer is a great long-term investment due to its position as a leading COVID-19 vaccine manufacturer, COVID-19 booster shots, a strong pipeline of drugs, strong mid-term growth, a strong pipeline of other drugs, as well as a good dividend play. However, tough competition and a negative political environment might hurt the company and its investors in the future.

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Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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Aaditya Patel

Aaditya Patel

Aaditya Patel is a writer who publishes analysis on companies publicly traded on the NYSE. Follow him @the_investing787 on Instagram for summary posts.

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