A look at Pfizer
Pfizer (PFE) is one of the largest pharmaceutical companies by revenue. Pfizer’s portfolio, which comprises the Innovative Health and Essential Health segments, includes various medicines, vaccines, and consumer healthcare products.
Stock price performance
Pfizer’s stock price has fallen ~2.6% in 2Q17. However, the stock price had risen ~2.3% year-to-date as of July 7, 2017.
Wall Street analysts estimate that the stock has the potential to return ~12.4% over the next 12 months. Analysts’ recommendations show a 12-month targeted price of $37.35 per share, compared with $33.22 per share on July 6, 2017.
Of the 21 analysts tracking Pfizer stock, 11 recommend “buy,” while ten recommend “hold.” The consensus rating for Pfizer stands at 2.6, which represents a moderate “buy” for value investors.
Analysts’ revenue estimates
Pfizer’s revenue is mainly driven by key pharmaceutical products Lyrica, Ibrance, Eliquis, Xeljanz, and Xtandi, the strong performance of new products, and increased alliance revenue.
Wall Street analysts expect revenue of $13.1 billion in 2Q17, a 0.6% decrease from 2Q16, and earnings per share of $0.66. To divest company-specific risk, investors could consider the Fidelity MSCI Health Care ETF (FHLC), which has a 6.7% exposure to Pfizer, a 5.3% exposure to Merck and Co. (MRK), a 2.9% exposure to Biogen (BIIB), and a 4.6% exposure to Gilead Sciences (GILD).