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 around the world. The company is well-known for its COVID-19 vaccine as well as a range of other drugs like Eliquis and Advil. The company was founded in 1849.

Why you Should?

  1. Pfizer produces the most effective COVID-19 vaccine in the world and is the most popular vaccine that is distributed around the world. This will continue to occur as the company sees sky-high demand for this vaccine. This will benefit the company’s results for years to come and will benefit investors.
  2. Pfizer has just launched a COVID-19 booster shot which is given to people after a certain amount of time since the first inoculation. This is a great opportunity for the company to get a recurring revenue stream as they will continue to distribute COVID-19 vaccines/vaccine booster shots in the future. This will benefit the company and its investors.
  3. Not only does Pfizer manufacture the COVID-19 vaccine, but they also manufacture a wide range of drugs. Some of these drugs include Advil, Eliquis, Chapstick, Bextra, and many others. This wide range of products will help the company go through tough times of demand as they can get income from more revenue opportunities. This will benefit the company and its investors.
  4. Pfizer is an extremely cheap investment option. The company currently trades at around 22 times price to earnings and also trades below 40 dollars. This makes the company a great cheap investment option and will also benefit investors in the company.

Why You Should Not?

  1. Pfizer faces tough competition from other big pharmaceutical companies around the world. Some of these companies include Johnson & Johnson, Moderna, Abbvie, and many others. This competition might hurt the company and its investors in the future.
  2. Pfizer has to deal with an extremely weak political background under a Biden administration. The administration will look to lower the cost of healthcare for Americans. This will hurt the company’s top and bottom line if they have to be forced to reduce the amount that they sell some drugs for. This will also hurt investors in the company.
  3. The COVID-19 pandemic hurt some aspects of the company’s business. Not only did the company spend billions of dollars in order to quickly make a COVID-19 vaccine, but they also saw a drop in demand for other drugs as people stayed indoors and did not go to hospitals. This hurt the company and its investors.

MY OPINION

I think that Pfizer is a great long-term investment due to its COVID-19 vaccine, its COVID-19 vaccine booster shot, its wide range of product offerings, as well as its position as a safe and cheap investment option. However, tough competition, negative impacts from the pandemic, and a weak political environment will hurt the company and its investors.

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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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