Pfizer Yields 6.8%, Trades at 8.5X Earnings, and Has a Promising Late-Stage Weight Loss Drug. Why Are So Many Investors Still Ignoring the Stock?
There is more to this stock than meets the eye.
Overview
At first glance, Pfizer (NYSE: PFE) looks like a great stock to buy. The company has a reliable dividend program and regularly raises its payouts, boasting a 6.8% forward yield, well above the S&P 500's average of 1.1%. Further, Pfizer trades at 8.5x forward earnings versus 18.8x for healthcare stocks. To top it all off, Pfizer's late-stage pipeline features MET-097i, a promising candidate in the fast-growing anti-obesity area. With all that going on, one might think that Pfizer is a no-brainer, but many investors disagree. The stock has moved sideways since the beginning of the year. What's going on?
Image source: The Motley Fool.
One of the reasons Pfizer is lagging the market is that its financial results haven't been great in recent years. Over the past three years, the company's top-line growth average has been negative.
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Originally published at www.fool.com.