Is Pfizer's Stock a Buy?
Pfizer (NYSE: PFE) is one of the top pharmaceutical companies in the world. With more than $50 billion in annual sales and profits of more than $16 billion over the trailing twelve months, the company offers investors a great deal of stability. The problem is that its business has shown minimal growth in recent years. While its dividend may attract investors looking for recurring income, it may be a struggle to find another reason to buy shares of Pfizer today. However, recent developments could make the company much more investable in the near future.
There are two big moves the company is making that will change how the stock looks and that should improve its growth rate as well.
The first is the spinoff of its Upjohn division, which encompasses the company's off-patent medicine. The division will merge with another drug manufacturer, Mylan. Upjohn contributed $8.1 billion to the company's top line over the past nine months, or one-fifth of the $39.1 billion in sales that Pfizer earned over that time, but that's down 13% from the $9.3 billion that the segment generated over the prior-year period. Spinning off the business will allow Pfizer to focus on products that are exhibiting more growth, like breast cancer drug Ibrance, which has seen its sales rise 23% year to date. Eliquis, which treats blood clots, has also seen impressive year-over-year sales growth of 24%.
Source Fool.com
