Jim Cramer’s Latest Portfolio: Top 9 Stocks to Buy and Sell

3. Pfizer Inc (NYSE:PFE)

Number of Hedge Fund Investors: 84

Jim Cramer in a latest program on CNBC said that he “likes” Pfizer Inc (NYSE:PFE) at the current levels and the company’s 5.6% dividend yield.

Cramer also said he likes Pfizer’s “cancer strategy.”

Pfizer Inc (NYSE:PFE) is down about 3% so far this year as the market is still reluctant about the company’s path forward beyond its COVID revenues. However, the bulls believe there are plenty of growth catalysts for the company.

Its $43 billion acquisition of Seagen will play a key role in its oncology portfolio. Pfizer Inc (NYSE:PFE) potential success with antibody-drug conjugates (ADCs) is also worth watching, as these treatments could boost its oncology division’s performance. In the second quarter, Pfizer’s oncology revenue jumped 27% year-over-year, highlighting solid execution in this growth area.

What about the weight loss industry? Pfizer Inc (NYSE:PFE) is a clear laggard in this area when compared to rockstars like Eli Lilly and Novo Nordisk. However, the company plans to position its product Danuglipron competitively, with a large-scale phase III trial in the works.

Pfizer Inc (NYSE:PFE) is also focusing on cost-cutting efforts, targeting over $4 billion in savings. Additionally, its manufacturing optimization plans could reduce operating expenses by another $1.5 billion by 2027.

PFE’s forward adjusted PEG ratio of 1.16, about 40% below the industry median. Based on the above-mentioned catalysts, the stock could be a promising buy for long-term investors.

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.”