10 Best Affordable Stocks Under $40 According to Short Sellers

7) Pfizer. Inc. (NYSE:PFE)

Forward P/E Ratio as of 26 August: 11.20x

Share Price as of 26 August: $28.92

Number of Hedge Fund Holders: 84

Short % of Shares Outstanding (31 July 2024): 1.15%

Pfizer Inc. (NYSE:PFE) operates as a pharmaceutical company. It provides medicines, vaccines, medical devices, and consumer healthcare products for oncology, inflammation, and other therapeutic areas.

Recently, The Food and Drug Administration allowed Moderna, Inc. (NASDAQ:MRNA)— and Pfizer Inc. (NYSE:PFE) and its partner BioNTech SE (NASDAQ:BNTX) —to roll out their new shots over the coming days, both of which plan to offshoot Omicron known as the KP. Therefore, before respiratory illness season arrives this fall, there will be new COVID-19 shots.

In 2023 end, Pfizer Inc. (NYSE:PFE) bought cancer drug firm Seagen for the consideration of US$43 billion. This was done to deploy some of its pandemic earnings and offset any sort of future patent losses. Moving forward, the company’s earnings growth is expected to be supported by its patented drug portfolio, economies of scale, and strong and stable distribution network.

Pfizer Inc. (NYSÉ:PFE)’s patent-protected drugs have a strong pricing power. This enables the company to generate high returns on invested capital and solid cash flows required to finance new and upgraded treatments before generic competition arises. Over the long term, the revenue from new products is expected to mitigate eventual generic competition witnessed in the company’s key drugs.

Analysts at BMO Capital Markets restated an “Outperform” rating on the shares of Pfizer Inc. (NYSE:PFE). The brokerage gave a price target of $36.00 on 2^nd May.

Parnassus Investments, an investment management company, released the first quarter 2024 investor letter. Here is what the fund said:

“During the quarter, we added new positions in Pfizer Inc. (NYSE:PFE), NICE and Charter Communications. We purchased Pfizer to capture the potential upside from any turnaround following the COVID-induced boom-bust cycle of the last few years. Pfizer’s stock price sank by more than 40% in 2023 as COVID-19 vaccine revenues rolled off, providing an attractive entry point for us. The company completed its acquisition of Seagen, which should strengthen Pfizer’s pipeline in antibody-drug conjugates (ADC). Pfizer also offers an attractive dividend yield.”