We recently published a list of 10 Best Very Cheap Stocks To Buy Right Now. In this article, we are going to take a look at where Pfizer Inc. (NYSE:PFE) stands against other best very cheap stocks to buy right now.
The stock market had a mixed start to 2025 as the Chinese Deepseek AI model has put the U.S. AI giants on the back foot. However, the tech-heavy NASDAQ 100 index made a recovery after taking a hit and has surged over 5% year-to-date. In addition, the S&P 500 index has gained just over 4% so far in 2025.
READ ALSO: 10 Best Cheap Technology Stocks To Buy According to Analysts
Goldman Sachs Research’s chief US equity strategist, David Kostin, expects the US tariffs to negatively impact the S&P 500 EPS in 2025. Kostin cited that every five-percentage-point increase in the US tariff rate will reduce S&P 500 EPS by roughly 1-2%.
If the U.S. administration continues with the proposed tariff rates, a 25% tariff on imported goods from Mexico and Canada and an additional 10% tariff on imports from China would reduce S&P 500 EPS forecasts by approximately 2-3%, as per Goldman’s Research.
With the potential market risks and tariff threat from the Trump administration, cheap stocks with strong fundamentals can be a good option for investment.
At first glance, the market may seem overvalued, with the S&P 500 trading close to all-time highs, driven by tech giants and leading consumer stocks. However, some stocks have missed the broader market rally amid temporary challenges. These stocks have attractive forward P/E ratios and proven growth records.
Our Methodology
We used the Finviz screener to compile a list of 30 cheap stocks with a forward P/E ratio of under 15. We shortlisted the 10 best very cheap stocks to buy now based on the highest potential upside according to average analyst estimate, as of February 17. The very cheap stocks are ranked in ascending order of the average analyst upside.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A medical technician wearing protective gloves and a mask mixing a biopharmaceutical solution.
Pfizer Inc. (NYSE:PFE)
P/E Ratio: 8.68
Average Analysts Upside: 19.47%
Pfizer Inc. (NYSE:PFE) is a leading American pharmaceutical company that is engaged in the discovery, manufacturing, marketing, and sale and distribution of related products worldwide. The biopharmaceutical isn’t generating the massive growth it was during the COVID-19 and post-COVID period as the company’s COVID-related revenue has been declining. But Pfizer’s overall business is growing and the fundamentals reflect an optimistic future about the company moving forward.
The COVID-19 vaccine sales dropped by 52% year-over-year to $5.4 billion for the full year 2024. However, the company’s top-line sales soared over 7% year-over-year. Pfizer’s specialty care segment posted 11% growth, and its oncology business expanded at a rate of 25%, driven by the acquisition of Seagen, which generated around $3.4 billion in revenue. Despite the decline in COVID-related sales, the company’s primary care business, which includes Comirnaty, only dropped by 2% from a year ago.
On February 11, Jefferies analyst Akash Tewari raised the price target on PFE shares from $33 to $34, keeping a Buy rating. The upgrade follows Pfizer’s releasing abstract on mevrometostat from the American Society of Clinical Oncology Genitourinary symposium. Tewari estimates mevrometostat’s risk-adjusted peak sales of approximately $1.2 billion. The analyst also remains optimistic about Pfizer Inc.’s (NYSE:PFE) oncology segment.
Overall, PFE ranks 7th on our list of best very cheap stocks to buy right now. While we acknowledge the potential of PFE to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PFE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
