10 Most Profitable Value Stocks to Buy Now

6. Pfizer Inc. (NYSE:PFE)

TTM Net Income as of March 13: $8.031 billion

Forward P/E Ratio as of March 13: 8.66

Number of Hedge Fund Holders: 92

Pfizer Inc. (NYSE:PFE) is a biopharmaceutical company that discovers, develops, and markets a range of medicines and vaccines. From cardiovascular and infectious disease treatments to oncology and rare disease therapies, it serves diverse patient needs through a robust portfolio and strategic collaborations.

The company’s oncology division is strengthened by the recent Seagen acquisition, which brought Pfizer Inc. (NYSE:PFE) a portfolio of antibody-drug conjugates (ADCs) and strengthened its oncology pipeline. The company’s Padcev medication, combined with pembrolizumab, is a cancer treatment regimen. It’s the leading first-line treatment for advanced bladder cancer in the US. Potential trial data for this treatment in 2025 could triple the patient population addressed.

The company is actively running Phase 3 trials for atirmociclib in breast cancer, sigvotatug vedotin in lung cancer, and candida in head and neck and lung cancers. These trials aim to expand treatment options and address unmet medical needs. Pfizer Inc. (NYSE:PFE) expects multiple Phase 3 readouts in 2025, which, if successful, could lead to new approvals and further growth.

Parnassus Value Equity Fund bought Pfizer Inc. (NYSE:PFE) as the fund anticipated growth from the Seagen acquisition. It stated the following 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.”