Undervalued Pfizer Remains Poised for Growth
Strong cash flows support drug development and a dividend that yields above 4%.
Although Pfizer (PFE) reported a failed study that reduced our sales forecast for cancer drug Ibrance, as well as our fair value estimate, the company continues to hold an entrenched, robust portfolio of drugs and a strong pipeline, supporting our wide economic moat rating.
Pfizer’s foundation remains solid, based on strong cash flows generated from a basket of diverse drugs. The company’s large size confers significant competitive advantages in developing new drugs. This unmatched heft, combined with a broad portfolio of patent-protected drugs, has helped Pfizer build a wide economic moat around its business.
Damien Conover does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.