Is PFE a good stock to buy? We came across a bullish thesis on Pfizer Inc. on r/ValueInvesting by Dismal-Cancel4958. In this article, we will summarize the bulls’ thesis on PFE. Pfizer Inc.’s share was trading at $25.08 as of June 22nd. PFE’s trailing and forward P/E were 19.15 and 8.50 respectively according to Yahoo Finance.
Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States and internationally. PFE at approximately $26 per share is increasingly being viewed as a deep value opportunity, with the market pricing in a worst-case scenario driven by post-COVID normalization and looming patent expirations. The stock has declined nearly 60% from pandemic highs as investors focus on collapsing COVID-19 vaccine and Paxlovid revenues, alongside management’s softer 2026 revenue guidance of $59.5–$62.5 billion.
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Additional concern stems from the anticipated patent cliff between 2026 and 2028, particularly for key franchises such as Eliquis and Ibrance, which has led to a narrative that Pfizer’s growth engine is structurally impaired. However, this pessimism overlooks the company’s ongoing transformation and undervalues its long-term earnings power.
On a relative basis, Pfizer trades at roughly 8.8x forward earnings, a steep discount versus peers such as Merck & Co. at ~15.7x and Johnson & Johnson at ~19.2x, despite offering a significantly higher dividend yield of approximately 6.5%. This yield, supported by 17 consecutive years of dividend increases, provides a substantial income buffer while investors wait for a turnaround.
The company has also reshaped its future through the $43 billion acquisition of Seagen, positioning itself as a leader in antibody-drug conjugates and next-generation oncology therapies, a segment with strong long-term growth potential that the market is currently underappreciating.
Beyond oncology, Pfizer holds additional optionality through its GLP-1 pipeline, including approved assets in China and multiple oral candidates in late-stage development, creating meaningful upside if even one program succeeds.
Fiscal 2026 is also expected to be a catalyst-rich year, with more than 20 Phase 3 trials initiating alongside aggressive cost-cutting initiatives aimed at preserving margins despite top-line pressure. Combined, these factors suggest Pfizer is not a value trap but a re-rating candidate, with a potential upside of 2x over the next 3–5 years if pipeline execution and cost discipline converge as expected.
