Jim Cramer’s Top 12 Must-Watch Stocks

4. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Investors: 84

Jim Cramer expressed a positive outlook on Pfizer Inc. (NYSE:PFE), highlighting several key factors that contribute to his recommendation. He is particularly drawn to Pfizer Inc. (NYSE:PFE)’s attractive dividend yield of 5.6%, which offers a solid return for investors looking for income.

“I like Pfizer here. I like the 5.6% yield and their cancer strategy. The answer is yes, buy more!”

Pfizer Inc. (NYSE:PFE) is developing a wide range of drugs, especially in oncology, rare diseases, and immunology, with potential approvals that could significantly increase revenue. In its recent Q2 2024 earnings report, Pfizer Inc. (NYSE:PFE) reported $12.7 billion in revenue, mainly from its COVID-19 vaccine and treatments, along with an adjusted earnings per share (EPS) of $1.12, which exceeded analyst expectations. Ongoing demand for COVID-19 products, driven by booster campaigns and new variants, further supports its revenue.

Strategic acquisitions, like Arena Pharmaceuticals, and partnerships with biotech firms strengthen Pfizer Inc. (NYSE:PFE)’s ability to innovate. Pfizer Inc. (NYSE:PFE) is also committed to providing value to shareholders through regular dividends and stock buybacks, making it appealing to income-focused investors. With promising drug approvals and advancements in gene therapy, Pfizer Inc. (NYSE:PFE) is well-positioned for continued growth, suggesting a strong future for the company.

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.”