We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Reasons Why Pfizer (PFE) Could be a Great Pick in 2017
Read MoreHide Full Article
Pfizer Inc. (PFE - Free Report) is one of the most prominent names in the pharmaceutical sector, not just for its medicines and vaccines but also for its consumer healthcare products. This New York-based company is known for products like Prevnar, Lyrica, Lipitor and Celebrex among others.
Pfizer’s shares surpassed that of large-cap pharma industry in 2016. The stock rose 0.6% in 2016, while the Zacks classified Large-Cap Pharma industry registered a decline of 5.5%. Pfizer’s outperformance was backed by decent quarterly results, regular positive news flow and regulatory updates.
Seeing that the company did fairly well in 2016, let’s find out if it will be a good investment in 2017 as well. Here are four reasons to invest in the stock this year.
This New York-based pharma giant has been consistently beating earnings expectations. It earnings surpassed expectations in three of the last four quarters, with an average positive surprise of 6.34%.
The company is expected to record earnings and sales growth of 7.68% and 3.99%, respectively, in 2017. Its earnings estimates for 2017 have gone up by 0.8% over the past 60 days.
Strategic Acquisitions & Collaborations: Pfizer has been working on strengthening its product portfolio as well as pipeline through acquisitions and licensing deals. The 2015 Hospira acquisition significantly expanded its sterile injectable and biosimilar capabilities. In 2016, Pfizer spent approximately $40 billion on acquisitions, which has enhanced the company’s near-term growth potential by expanding its footprint in the highest-growth therapeutic areas.The Sep 2016 takeover of Medivation strengthened Pfizer’s cancer franchise by adding prostate cancer treatment, Xtandi, to its portfolio. Xtandi is also being evaluated for various other types of cancer and holds immense potential. The Jun 2016 Anacor buyout added Eucrisa (crisaborole) topical ointment to Pfizer’s pipeline. Eucrisa was approved by the FDA in Dec 2016. Pfizer estimates Eucrisa peak sales potential to be at least $2 billion. Moreover, the Bamboo Therapeutics acquisition of Aug 2016 complements Pfizer’s rare disease portfolio and enhances its leadership position in gene therapy.
In addition to acquisitions, Pfizer is looking to drive growth through licensing deals and collaborative agreements. It has strategic deals with big names in the pharma sector like Merck & Co., Inc. (MRK - Free Report) (for lung cancer drug Xalkori’s combination and ertugliflozin for type II diabetes), Bristol-Myers Squibb Company (BMY - Free Report) (for Eliquis) and GlaxoSmithKline plc (GSK - Free Report) (for its breast cancer drug Ibrance’s combination).
Deep Pipeline: Pfizer has committed significant resources toward the development of treatments in the fields of oncology, cardiology, metabolic disorders, neuroscience, pain, rare diseases, immunology, inflammation and vaccines, and immuno-oncology. Most of these signify areas in which the company believes it can take leading positions. Meanwhile, it has also stopped funding for treatments in high risk/low productivity therapeutic areas like allergy, respiratory diseases, urology, internal medicine and tissue repair. Pfizer has been working on streamlining its R&D efforts and has several late-stage candidates in its pipeline.
Interesting candidates in the company’s pipeline include ertugliflozin, inotuzumab ozogamicin (relapsed/refractory acute lymphoblastic leukemia), dacomitinib (advanced lung cancer) and avelumab (different types of cancer). Meanwhile, Pfizer is exploring the possibility of expanding the label of its breast cancer drug Ibrance to include recurrent and subsequent early breast cancer. Note that Ibrance is performing well in the oncology space.
Pfizer is also working on expanding the labels of its other approved products like Xeljanz, Xalkori and Eliquis. It has several key pipeline-related milestones lined up in 2017, which will attract investor attention to the stock.
Aggressive Cost-Cutting Initiatives: With several of its products either facing or slated to face generic competition, Pfizer is looking toward cost-cutting initiatives to drive bottom-line growth. The company has been undertaking massive restructuring and cost-cutting measures over the past several years. Management is also looking to focus efforts on areas that can offer the high potential like oncology and geographic regions like Asia. Pfizer achieved the cost-reduction goals that were announced in 2009 by the end of 2011, a year earlier than expected, and continues to generate cost savings. The company also achieved its target of bringing about a significant reduction in its annual R&D spend by the end of 2012.
Conclusion
Pfizer faces its share of challenges in the form of genericization of key drugs like Celebrex and Lipitor, while others like Lyrica and Chantix will lose exclusivity in the coming years. However, despite generic and pricing pressure, and rising competition, we believe Pfizer will be able to overcome these headwinds in 2017.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Reasons Why Pfizer (PFE) Could be a Great Pick in 2017
Pfizer Inc. (PFE - Free Report) is one of the most prominent names in the pharmaceutical sector, not just for its medicines and vaccines but also for its consumer healthcare products. This New York-based company is known for products like Prevnar, Lyrica, Lipitor and Celebrex among others.
Pfizer’s shares surpassed that of large-cap pharma industry in 2016. The stock rose 0.6% in 2016, while the Zacks classified Large-Cap Pharma industry registered a decline of 5.5%. Pfizer’s outperformance was backed by decent quarterly results, regular positive news flow and regulatory updates.
Seeing that the company did fairly well in 2016, let’s find out if it will be a good investment in 2017 as well. Here are four reasons to invest in the stock this year.
Rank & Earnings Surprise Record: Pfizer has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
This New York-based pharma giant has been consistently beating earnings expectations. It earnings surpassed expectations in three of the last four quarters, with an average positive surprise of 6.34%.
The company is expected to record earnings and sales growth of 7.68% and 3.99%, respectively, in 2017. Its earnings estimates for 2017 have gone up by 0.8% over the past 60 days.
Strategic Acquisitions & Collaborations: Pfizer has been working on strengthening its product portfolio as well as pipeline through acquisitions and licensing deals. The 2015 Hospira acquisition significantly expanded its sterile injectable and biosimilar capabilities. In 2016, Pfizer spent approximately $40 billion on acquisitions, which has enhanced the company’s near-term growth potential by expanding its footprint in the highest-growth therapeutic areas.The Sep 2016 takeover of Medivation strengthened Pfizer’s cancer franchise by adding prostate cancer treatment, Xtandi, to its portfolio. Xtandi is also being evaluated for various other types of cancer and holds immense potential. The Jun 2016 Anacor buyout added Eucrisa (crisaborole) topical ointment to Pfizer’s pipeline. Eucrisa was approved by the FDA in Dec 2016. Pfizer estimates Eucrisa peak sales potential to be at least $2 billion. Moreover, the Bamboo Therapeutics acquisition of Aug 2016 complements Pfizer’s rare disease portfolio and enhances its leadership position in gene therapy.
In addition to acquisitions, Pfizer is looking to drive growth through licensing deals and collaborative agreements. It has strategic deals with big names in the pharma sector like Merck & Co., Inc. (MRK - Free Report) (for lung cancer drug Xalkori’s combination and ertugliflozin for type II diabetes), Bristol-Myers Squibb Company (BMY - Free Report) (for Eliquis) and GlaxoSmithKline plc (GSK - Free Report) (for its breast cancer drug Ibrance’s combination).
Deep Pipeline: Pfizer has committed significant resources toward the development of treatments in the fields of oncology, cardiology, metabolic disorders, neuroscience, pain, rare diseases, immunology, inflammation and vaccines, and immuno-oncology. Most of these signify areas in which the company believes it can take leading positions. Meanwhile, it has also stopped funding for treatments in high risk/low productivity therapeutic areas like allergy, respiratory diseases, urology, internal medicine and tissue repair. Pfizer has been working on streamlining its R&D efforts and has several late-stage candidates in its pipeline.
Interesting candidates in the company’s pipeline include ertugliflozin, inotuzumab ozogamicin (relapsed/refractory acute lymphoblastic leukemia), dacomitinib (advanced lung cancer) and avelumab (different types of cancer). Meanwhile, Pfizer is exploring the possibility of expanding the label of its breast cancer drug Ibrance to include recurrent and subsequent early breast cancer. Note that Ibrance is performing well in the oncology space.
Pfizer is also working on expanding the labels of its other approved products like Xeljanz, Xalkori and Eliquis. It has several key pipeline-related milestones lined up in 2017, which will attract investor attention to the stock.
Aggressive Cost-Cutting Initiatives: With several of its products either facing or slated to face generic competition, Pfizer is looking toward cost-cutting initiatives to drive bottom-line growth. The company has been undertaking massive restructuring and cost-cutting measures over the past several years. Management is also looking to focus efforts on areas that can offer the high potential like oncology and geographic regions like Asia. Pfizer achieved the cost-reduction goals that were announced in 2009 by the end of 2011, a year earlier than expected, and continues to generate cost savings. The company also achieved its target of bringing about a significant reduction in its annual R&D spend by the end of 2012.
Conclusion
Pfizer faces its share of challenges in the form of genericization of key drugs like Celebrex and Lipitor, while others like Lyrica and Chantix will lose exclusivity in the coming years. However, despite generic and pricing pressure, and rising competition, we believe Pfizer will be able to overcome these headwinds in 2017.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>