10 Most Undervalued S&P 500 Stocks to Buy Now

8. Pfizer Inc. (NYSE:PFE)

Forward P/E Ratio as of March 14: 8.62

Number of Hedge Fund Holders: 92

Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical company that discovers, develops, and sells a range of medicines and vaccines across various therapeutic areas. These areas include cardiovascular, infectious diseases, and oncology, with notable brands like Comirnaty, Paxlovid, and Eliquis.

The company’s oncology segment is expanding. Padcev combined with pembrolizumab has become the leading initial treatment for advanced urothelial cancer in the US, with the potential to reach three times more patients. Additionally, Braftovi/Mektovi have experienced a 27% global sales increase from the previous year. It is supported by new data showing improved survival rates in colorectal cancer. Lorbrena also saw substantial growth and has become a standard lung cancer treatment with a 37% global sales increase.

The company is aggressively expanding its oncology pipeline with ongoing Phase 3 trials for sigvotatug vedotin in lung cancer and planned studies in other cancers. A Phase 3 readout for multiple myeloma is also anticipated. In 2025, Pfizer Inc. (NYSE:PFE) will aim for multiple regulatory approvals and Phase 3 results. Recent positive Phase 3 results for breast cancer therapy vepdegestrant, combined with FDA Fast Track designation, highlight the company’s commitment to innovation and strong financial performance. It has contributed to a modest 4% price increase despite broader market challenges.

Anticipating growth from the company, Parnassus Value Equity Fund bought its stock last year and 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.”