10 Most Undervalued US Stocks to Buy According to Hedge Funds

5. Pfizer Inc. (NYSE:PFE)

Forward P/E Ratio as of March 6: 8.76

Number of Hedge Fund Holders: 92

Pfizer Inc. (NYSE:PFE) is a global biopharmaceutical leader that discovers, develops, and delivers a portfolio of innovative medicines and vaccines across a range of therapeutic areas. These include cardiovascular, infectious diseases, and oncology. It serves patients worldwide through its extensive distribution network and strategic collaborations.

The company’s oncology segment is supported by the Seagen acquisition. This acquisition brought Pfizer Inc. (NYSE:PFE) a portfolio of antibody-drug conjugates (ADCs) and expanded its oncology pipeline and capabilities. Padcev plus pembrolizumab is the leading first-line treatment for advanced urothelial cancer in the US, with potential to triple its patient reach. As of Q4 2024, Braftovi/Mektovi saw a 27% year-over-year global growth, and recent data showed survival improvements in colorectal cancer. Lorbrena became a standard treatment for lung cancer and grew 37% globally.

The company is actively expanding its oncology pipeline. Phase 3 studies are ongoing for sigvotatug vedotin in lung cancer, and new studies are planned for first-line lung cancer and head and neck cancer with Candida. A Phase 3 readout for multiple myeloma is expected, which will potentially triple its patient base. In 2025, Pfizer Inc. (NYSE:PFE) will focus on R&D productivity, with several potential regulatory approvals and Phase 3 readouts.

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.”