10 Best Stocks to Buy and Hold For 3 Years

8. Pfizer Inc. (NYSE:PFE)

Number of Hedge Funds: 80

Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that heavily focuses on research, development, and sale of drugs and specialty treatments. The company has made significant progress in oncology and primary care and has a portfolio that spans over 100 drugs sold internationally.

The company experienced record sales and came under the spotlight due to its COVID-19 vaccine, generating $100 billion in revenue during 2022. Although the COVID-19 threat has been averted, Pfizer Inc. (NYSE:PFE) still has growth potential as management has shifted focus to its Oncology segment. The company demonstrated its interest by acquiring Seagen for $43 billion in 2023 and plans to expand its oncology portfolio by adding 8 potential cancer treatments by 2030.

The segment is already contributing significant growth. During the fiscal third quarter of 2024, Pfizer Inc. (NYSE:PFE) generated $17.7 billion in revenue driven by a robust 31% year-over-year growth coming from its Oncology segment. In addition, management has also been focused on improving its cost savings. On December 17, the company announced that it had successfully achieved its goal of $4.0 billion in net cost savings through 2024 and now anticipates an additional $500 million in savings in 2025 as part of its ongoing cost realignment program. It is one of the best stocks to buy and hold for 3 years.

Parnassus Value Equity Fund stated the following regarding Pfizer Inc. (NYSE:PFE) in its first quarter 2024 investor letter:

“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.”