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Pfizer's Golden Cross Signals Strength: How to Play the Stock
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Key Takeaways
Pfizer stock formed a golden cross as its 50-day SMA rose above the 200-day SMA in August.
Seagen deal and new drugs lifted Pfizer's non-COVID revenues in H125.
Pfizer faces LOE risks, IRA headwinds and tariff uncertainty but offers a high dividend yield.
Pfizer (PFE - Free Report) stock has been trading above its 50-day and 200-day simple moving averages (SMAs) since mid-August
The 50-day moving average is a short-term indicator, while the 200-day moving average is a longer-term indicator. When the 50-day moving average exceeds the 200-day moving average on a stock’s price chart, it's known as a "golden cross," a signal of a prolonged upward trend. The crossover indicates that the stock's recent price performance has been stronger than its longer-term performance.
PFE stock achieved the golden cross in mid-August. The 50-day SMA has been higher than the 200-day SMA since then, a positive sign for the stock’s future gains.
Image Source: Zacks Investment Research
Let’s understand Pfizer’s strengths and weaknesses to better analyze how to play the stock as it has been trading above this important support level.
PFE Enjoys a Strong Position in Oncology
Pfizer is one of the largest and most successful drugmakers in oncology. The addition of Seagen strengthened its position in oncology.
Its oncology revenues are rising, driven by drugs like Xtandi, Lorbrena, the Braftovi-Mektovi combination and Padcev. Its oncology revenues grew 9% in the first half of 2025.
Pfizer has ventured into the oncology biosimilars space and markets six biosimilars for cancer. Pfizer also advanced its oncology clinical pipeline with several candidates entering late-stage development, like sasanlimab, vepdegestrant and sigvotatug vedotin. By 2030, it expects to have eight or more blockbuster oncology medicines in its portfolio.
Pfizer is also working on expanding the labels of its approved products (oncology as well as non-oncology) like Padcev, Adcetris, Litfulo, Nurtec, Velsipity and Elrexfio, among others.
PFE’s New Drugs & Seagen Acquisition Driving Top-Line Growth
Pfizer’s non-COVID operational revenues are improving, driven by its key in-line products like Vyndaqel, Padcev and Eliquis, new launches and newly acquired products like Nurtec and those from Seagen (December 2023). Pfizer's recently launched and acquired products delivered $4.7 billion in revenues in the first half of 2025, rising approximately 15% operationally versus last year.
Continued growth of Pfizer’s diversified portfolio of drugs, particularly oncology, should support top-line growth in 2025.
Pfizer’s new products/late-stage pipeline candidates and newly acquired products, including those acquired from Seagen, position it strongly for operational growth in 2025 and beyond. Pfizer expects the 2025 to 2030 revenue CAGR to be approximately 6%.
Pfizer expects the acquisition of Seagen to contribute more than $10 billion in 2030 risk-adjusted revenues with potential significant growth beyond 2030.
Uncertainty Related to Sales of COVID Products
With the end of the pandemic, sales of Pfizer’s COVID products, Comirnaty and Paxlovid, came down to around $11 billion in 2024 from $56.7 billion in 2022. Though sales of Paxlovid and Comirnaty have stabilized in 2025 after declining significantly in the past two years, their sales are usually weighted toward the second half of the year and are difficult to estimate as they depend on infection rates. There is an element of uncertainty related to COVID sales, and they may decline further in future years.
PFE’s Other Headwinds in 2025
Though Pfizer expects a moderate negative impact on revenues from the loss of exclusivity (“LOE”) in 2025, the impact is expected to be significant in the 2026-2030 period as several of its key products, including Eliquis, Vyndaqel, Ibrance, Xeljanz and Xtandi, will face patent expirations.
Pfizer expects an unfavorable impact of approximately $1 billion from the Medicare Part D redesign under the IRA, which took effect in the first quarter of 2025. Higher-priced drugs, including Vyndaqel, Ibrance, Xtandi and Xeljanz, are most affected by the IRA.
The uncertainty around tariffs and trade production measures has muted economic growth. President Trump has once again threatened to impose heavy tariffs, as high as 250%, on pharmaceutical imports. Trump’s repeated threats to impose tariffs on pharmaceutical imports are aimed at pushing American pharma companies to shift pharmaceutical production back to the United States, primarily from European and Asian countries. Trump has said that drugmakers have about one to one and a half years to bring production back to the United States before the new tariffs are imposed.
PFE’s Stock Price, Estimates & Valuation
Pfizer’s stock has declined 1.6% so far this year against an increase of 1.3% for the industry.
PFE Stock Underperforms Industry
Image Source: Zacks Investment Research
From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its 5-year mean. Going by the price/earnings ratio, Pfizer’s shares currently trade at 7.98 forward earnings, significantly lower than 14.78 for the industry as well as the stock’s 5-year mean of 10.75. The stock is also much cheaper than other large drugmakers like AbbVie (ABBV - Free Report) , Novo Nordisk (NVO - Free Report) , Eli Lilly (LLY - Free Report) , AstraZeneca, J&J and others.
PFE Stock Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for earnings has risen from $3.07 per share to $3.13 per share for 2025, while that for 2026 has increased from $3.06 per share to $3.09 per share over the past 30 days.
PFE Estimate Movement
Image Source: Zacks Investment Research
Stay Invested in PFE Stock
Pfizer faces its share of challenges, including COVID-19 product-related uncertainty, U.S. Medicare Part D headwinds, the upcoming LOE cliff in the 2026-2030 period, uncertainties around tariffs and a volatile macro environment. However, with COVID-related uncertainties diminishing, its revenue volatility is declining. Pfizer’s key drugs like Vyndaqel, Padcev and its recently launched and acquired products should help the company largely offset its LOEs over the next several years.
Pfizer expects cost cuts and internal restructuring to deliver savings of $7.7 billion by the end of 2027. Pfizer’s significant cost reduction and efforts to improve R&D productivity measures should drive profit growth. Though Pfizer does not expect strong top-line growth over the next three years due to the LOEs, it expects EPS growth.
Pfizer’s dividend yield stands at around 7%, which is impressive.
Investors should continue to retain this Zacks Rank #3 (Hold) stock in their portfolio as it appears to have significant upside potential. Though the stock price has declined this year, the occurrence of the golden cross recently suggests a bullish outlook for PFE. Investors with a long-term horizon may consider investing in this stock due to its cheap valuation, high dividend yield, rising estimates, recent stock price appreciation and significant growth prospects.
Image: Bigstock
Pfizer's Golden Cross Signals Strength: How to Play the Stock
Key Takeaways
Pfizer (PFE - Free Report) stock has been trading above its 50-day and 200-day simple moving averages (SMAs) since mid-August
The 50-day moving average is a short-term indicator, while the 200-day moving average is a longer-term indicator. When the 50-day moving average exceeds the 200-day moving average on a stock’s price chart, it's known as a "golden cross," a signal of a prolonged upward trend. The crossover indicates that the stock's recent price performance has been stronger than its longer-term performance.
PFE stock achieved the golden cross in mid-August. The 50-day SMA has been higher than the 200-day SMA since then, a positive sign for the stock’s future gains.
Let’s understand Pfizer’s strengths and weaknesses to better analyze how to play the stock as it has been trading above this important support level.
PFE Enjoys a Strong Position in Oncology
Pfizer is one of the largest and most successful drugmakers in oncology. The addition of Seagen strengthened its position in oncology.
Its oncology revenues are rising, driven by drugs like Xtandi, Lorbrena, the Braftovi-Mektovi combination and Padcev. Its oncology revenues grew 9% in the first half of 2025.
Pfizer has ventured into the oncology biosimilars space and markets six biosimilars for cancer. Pfizer also advanced its oncology clinical pipeline with several candidates entering late-stage development, like sasanlimab, vepdegestrant and sigvotatug vedotin. By 2030, it expects to have eight or more blockbuster oncology medicines in its portfolio.
Pfizer is also working on expanding the labels of its approved products (oncology as well as non-oncology) like Padcev, Adcetris, Litfulo, Nurtec, Velsipity and Elrexfio, among others.
PFE’s New Drugs & Seagen Acquisition Driving Top-Line Growth
Pfizer’s non-COVID operational revenues are improving, driven by its key in-line products like Vyndaqel, Padcev and Eliquis, new launches and newly acquired products like Nurtec and those from Seagen (December 2023). Pfizer's recently launched and acquired products delivered $4.7 billion in revenues in the first half of 2025, rising approximately 15% operationally versus last year.
Continued growth of Pfizer’s diversified portfolio of drugs, particularly oncology, should support top-line growth in 2025.
Pfizer’s new products/late-stage pipeline candidates and newly acquired products, including those acquired from Seagen, position it strongly for operational growth in 2025 and beyond. Pfizer expects the 2025 to 2030 revenue CAGR to be approximately 6%.
Pfizer expects the acquisition of Seagen to contribute more than $10 billion in 2030 risk-adjusted revenues with potential significant growth beyond 2030.
Uncertainty Related to Sales of COVID Products
With the end of the pandemic, sales of Pfizer’s COVID products, Comirnaty and Paxlovid, came down to around $11 billion in 2024 from $56.7 billion in 2022. Though sales of Paxlovid and Comirnaty have stabilized in 2025 after declining significantly in the past two years, their sales are usually weighted toward the second half of the year and are difficult to estimate as they depend on infection rates. There is an element of uncertainty related to COVID sales, and they may decline further in future years.
PFE’s Other Headwinds in 2025
Though Pfizer expects a moderate negative impact on revenues from the loss of exclusivity (“LOE”) in 2025, the impact is expected to be significant in the 2026-2030 period as several of its key products, including Eliquis, Vyndaqel, Ibrance, Xeljanz and Xtandi, will face patent expirations.
Pfizer expects an unfavorable impact of approximately $1 billion from the Medicare Part D redesign under the IRA, which took effect in the first quarter of 2025. Higher-priced drugs, including Vyndaqel, Ibrance, Xtandi and Xeljanz, are most affected by the IRA.
The uncertainty around tariffs and trade production measures has muted economic growth. President Trump has once again threatened to impose heavy tariffs, as high as 250%, on pharmaceutical imports. Trump’s repeated threats to impose tariffs on pharmaceutical imports are aimed at pushing American pharma companies to shift pharmaceutical production back to the United States, primarily from European and Asian countries. Trump has said that drugmakers have about one to one and a half years to bring production back to the United States before the new tariffs are imposed.
PFE’s Stock Price, Estimates & Valuation
Pfizer’s stock has declined 1.6% so far this year against an increase of 1.3% for the industry.
PFE Stock Underperforms Industry
From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its 5-year mean. Going by the price/earnings ratio, Pfizer’s shares currently trade at 7.98 forward earnings, significantly lower than 14.78 for the industry as well as the stock’s 5-year mean of 10.75. The stock is also much cheaper than other large drugmakers like AbbVie (ABBV - Free Report) , Novo Nordisk (NVO - Free Report) , Eli Lilly (LLY - Free Report) , AstraZeneca, J&J and others.
PFE Stock Valuation
The Zacks Consensus Estimate for earnings has risen from $3.07 per share to $3.13 per share for 2025, while that for 2026 has increased from $3.06 per share to $3.09 per share over the past 30 days.
PFE Estimate Movement
Stay Invested in PFE Stock
Pfizer faces its share of challenges, including COVID-19 product-related uncertainty, U.S. Medicare Part D headwinds, the upcoming LOE cliff in the 2026-2030 period, uncertainties around tariffs and a volatile macro environment. However, with COVID-related uncertainties diminishing, its revenue volatility is declining. Pfizer’s key drugs like Vyndaqel, Padcev and its recently launched and acquired products should help the company largely offset its LOEs over the next several years.
Pfizer expects cost cuts and internal restructuring to deliver savings of $7.7 billion by the end of 2027. Pfizer’s significant cost reduction and efforts to improve R&D productivity measures should drive profit growth. Though Pfizer does not expect strong top-line growth over the next three years due to the LOEs, it expects EPS growth.
Pfizer’s dividend yield stands at around 7%, which is impressive.
Investors should continue to retain this Zacks Rank #3 (Hold) stock in their portfolio as it appears to have significant upside potential. Though the stock price has declined this year, the occurrence of the golden cross recently suggests a bullish outlook for PFE. Investors with a long-term horizon may consider investing in this stock due to its cheap valuation, high dividend yield, rising estimates, recent stock price appreciation and significant growth prospects.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.