Last Updated: May 14, 2021
The financial market has been a rollercoaster over the last year. But the devastating pandemic and economic turmoil have failed to hurt investor enthusiasm. When it comes to stock investment, big names like Pfizer Inc. (NYSE:PFE) prove appealing. This leading pharmaceutical company has recently announced the completion of its successful COVID-19 vaccine. But is it a viable investment and if so, how to buy Pfizer stock?
This post will tell you about:
- Pfizer earnings
- Stock performance
- How to buy shares
- What to expect
Pfizer —About the Company
Pfizer Inc. was founded in Brooklyn, New York, in 1849 by German chemist Charles Pfizer and his cousin Charles Erhart. Formerly known as Charles Pfizer & Company, the pharmaceutical’s mission is to “make the world a healthier place”. Developed to live up to this core value, some of the most popular Pfizer products include Viagra, Advil, Zoloft, and Xanax.
Pfizer is currently the second-largest pharma company by revenues. It operates worldwide and gets approximately 55% of its income from international customers. In 2020, Pfizer earnings were around $9.62 billion, while revenues totaled $41.90 billion.
In 2021, the drug giant expects $15 billion in sales of the coronavirus vaccine it developed with German peer BioNTech. This perspective may boost the PFE stock price in the near future.
Should You Buy Pfizer Stock?
When investing in stocks, there are many factors investors should consider and analyze. These include:
Free Cash Flow (FCF)
This is basically the cash available for the company to pay dividends and interest to investors, repay creditors, and reinvest to keep its business operating.
These are the company’s after-tax net income, or profit, in a given quarter or fiscal year. It’s important to consider not just the percentage growth or decline, but how that fares in the respective sector.
Return on Assets (ROA)
This shows how profitable the company is relative to its total assets. In other words, ROA indicates whether the management uses the assets to generate earnings and create value for stock owners.
Dividend Payout Ratio (DPR)
The DPR, or dividend yield, represents the fraction of net income paid out to shareholders relative to the company’s net income. Dividend-paying stocks are attractive to investors because they are typically larger, well-established companies.
Now, if you wonder “should I buy Pfizer stock”, keep in mind that personal values also play a significant role in investment decision-making. There’s no universal advice. Plus, the responsibility lies in your own hands. So, read on and decide for yourself.
Looking at Pfizer stock price history, the pharma giant has risen just over 5% since February 2020. The start of 2021 seems a bit downbeat, with around an 8% drop in the company’s share price.
Despite the recent slip, some analysts see Pfizer as a viable investment in the long run, especially following the announcement of the company’s highly-touted COVID-19 vaccine. According to estimates, the shot’s successful rollout will boost the company’s earnings. This could serve as a solid catalyst for the stock in the near term.
The positive Pfizer stock price forecast is further fueled by the rate of cash return to shareholders. During fiscal 2020, Pfizer distributed $8.4 billion of cash dividends, composed of a quarterly payment of $0.38 per share of common stock. Currently, Pfizer stock dividend yield is 4.5%, with anything between 2% and 6% considered good in the industry. Still, it’s a bit lower than the total market average of 10%.
Pfizer stocks could be a good choice for investors of all risk tolerances across the board. At the time of writing, the stock is trading at $33.75. But with the expected push by the company’s coronavirus vaccine, stock investors may find the moment a good time to buy shares cheaply and gain on a potential increase in the near future.
At a glance, here are some factors that make Pfizer stocks a good buy:
- Pfizer’s earnings per share (EPS) grew from $1.91 to $2.22 in 2020.
- The company has recently raised its 2021 full-year earnings guidance, citing “additional refinements” of its COVID-19 vaccine revenue forecast.
- In 2020, the stock was less volatile than most of its competitors.
- Analysts offering a 12-month Pfizer stock price forecast have a median target of $40.00, representing an 18.33% increase from current prices.
Some market experts suggest that investing in Pfizer stocks will help you improve profits, balance risk, and reduce the volatility of your portfolio over time. Additionally, portfolio diversification provides the best defense against financial risk.
How to Buy Pfizer Stock?
One of the top questions that many investors ask when diversifying their portfolio with Pfizer stocks is how and where to buy them. If you are wondering how to buy Pfizer stock, you should know that there are two options available.
The traditional route includes contacting a broker and placing your order. All you will need is an active brokerage account. Buying Pfizer stocks is that easy and simple because they are mainly trading on the New York Stock Exchange (NYSE). Pfizer shares are also available on regional exchanges in the US, as well as on the London and Swiss stock markets. Apart from NYSE:PFE, Pfizer stock symbols include LON:0Q1N and FRA:PFE.
Another way to buy the stock is directly from Pfizer. To get started with this method, get in touch with Computershare — Pfizer’s transfer agent. This method will help you save on transaction costs while allowing you to buy a company’s stock with minimal investment requirements.
The steps of buying Pfizer shares from Computershare are simple.
- Go to the Computershare’s website
- Scroll down to Pfizer and then click on view. This will help you review the company’s stock buying plan.
- Next, click on ‘buy now’. From there follow the prompts to open the account over the web.
- Now select the investment method such as investing via one-time cash or by arranging monthly debits from your account automatically.
So, is Pfizer a good stock? It’s definitely an investment option worth-considering. Overall, Pfizer has high earning and net margins. The company’s COVID-19 vaccine is expected to boost sales, propelling Pfizer’s net profit in today’s challenging economy. Bear in mind, however, that the stock market is volatile and every investment involves a certain degree of risk.
Pfizer’s stock symbol on the New York Stock Exchange is NYSE:PFE . Also known as a ticker symbol, it can be best described as some letters assigned to trading security.
The fiscal year-end for Pfizer’s US subsidiaries is December 31st. For subsidiaries located worldwide the reporting date is November 30th.
Yes. The company is known for paying out generous dividends to its shareholders. In the past, we have seen Pfizer distribute as much as 61% of its earnings as dividends to its shareholders. Moreover, the pharma giant is expected to make massive sales from its COVID-19 vaccine, which will mean higher dividends for stockholders. So, the next year we can expect the Pfizer stock dividend to be higher.
Exactly the opposite, in fact. Valuation metrics show that Pfizer Inc may be undervalued at the moment. In the first two months of 2021, the company share price lost more than 8%, but it’s still trading fair compared to competitors.
Many companies own Pfizer stocks. Investment adviser The Vanguard Group Inc holds the biggest stake of 7.62%. The 426,111,205 shares are worth nearly $16 billion at current prices. Other significant Pfizer Inc stocks owners are SSgA Funds Management Inc., BlackRock Fund Advisors, Capital Research and Management Co and Wellington Management Co LLP.
If you’ve decided to follow suit and wonder how to buy Pfizer stock, you can contact a broker or buy the shares directly from the company’s transfer agent Computershare.