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1 Deeply Undervalued Stock to Buy in the Market Correction
PFEPfizer(PFE) The Motley Fool·2025-04-12 08:18

Core Viewpoint - Pfizer's shares have been declining for three years, but they may present a buying opportunity for long-term investors [1][2] Group 1: Impact of Tariffs - Pfizer is well-positioned to handle potential tariffs due to its significant manufacturing capacity in the U.S. [3][4] - The company operates the largest U.S.-based manufacturing network in the pharmaceutical industry, with 13 operational sites [4] - Unlike many drugmakers, Pfizer can shift manufacturing operations to the U.S. to avoid tariffs, which could lead to cost savings [5][6] Group 2: Financial Performance - Pfizer's revenue for 2024 increased by 7% year over year to 63.6billion,witha1263.6 billion, with a 12% growth rate excluding contributions from its coronavirus products [8] - The company has reduced its reliance on its coronavirus products, Comirnaty and Paxlovid, which generated a combined 11.1 billion [7][8] - Pfizer's acquisition of Seagen for $43 billion has strengthened its oncology business and expanded its pipeline, which includes over 100 candidates across various therapeutic areas [9] Group 3: Valuation and Future Outlook - Pfizer's forward price-to-earnings (P/E) ratio is 7.6, significantly lower than the healthcare industry's average of 15.8, indicating that the stock is undervalued [12] - The company is focused on launching new products to establish a strong foundation for future growth [10][11]