Pfizer Stock: Technical Strength Meets Valuation Appeal

Pfizer (PFE) has been holding above its 50-day moving average since November, signaling short-term bullish momentum. More importantly, it’s been trading above the 200-day average since late September—a solid foundation.

Why the recent pop? The pharma giant just won a bidding war against Novo Nordisk to acquire Metsera (obesity drugs) for $10B, plus it locked in a drug pricing deal with the Trump admin for tariff relief. Both catalysts drove the rally.

The case for holding:

• Oncology is killing it: 28% of revenue, growing 7% YTD with blockbuster pipeline
• Expects 6% revenue CAGR through 2030
• New acquisitions (Seagen, Metsera) adding growth firepower
• Currently trading at 7.97x forward P/E vs. 16.71x for the pharma industry—dirt cheap
• 7% dividend yield is tasty

The headwinds:

• COVID product sales tanking (lower vaccination rates)
• Medicare Part D redesign hitting revenue by ~$1B
• Patent cliff incoming 2026-2030 (Eliquis, Vyndaqel, Ibrance at risk)
• Stock down 5.4% YTD vs. +13.9% for the industry

Bottom line: PFE trades like a value trap, but the pipeline and cost cuts ($7.7B savings by 2027) could deliver EPS growth despite top-line pressure. If you’re already in, hold it. If you’re looking to buy, the valuation gap vs. peers is worth exploiting.