Pfizer Stock Uptrend in Q2

Pfizer Inc. has reported a notable increase in sales during the second quarter of 2023, despite a significant drop in revenue from its Covid-19 products. The company's stock has experienced a decline of 15% since early January 2021, falling from $35 to approximately $30, while its competitor Merck has seen a 65% increase in the same period. Pfizer's total sales have decreased to $55 billion over the past year, down from a peak of $100 billion in 2022, driven by the surge in demand for its Covid-19 vaccine and treatments. The stock's performance has been inconsistent, with returns of 60% in 2021, a decline of 13% in 2022, and a further drop of 44% in 2023. In contrast, the S&P 500 has shown more resilience, with returns of 27% in 2021, -19% in 2022, and 24% in 2023. This underperformance highlights the challenges Pfizer faces in the current market, especially when compared to the Trefis High Quality Portfolio, which has consistently outperformed the S&P 500. From a valuation standpoint, analysts estimate Pfizer's stock could rise to $34 per share, indicating a potential upside of around 15% from its current price of $29. This forecast is based on a projected earnings per share of $2.62 for 2024 and a price-to-earnings multiple of 13x. Additionally, the recent acquisition of Seagen is expected to significantly boost Pfizer's revenue, contributing an estimated $10 billion by 2030. Overall, Pfizer's second-quarter results reflect a 3% year-over-year increase in sales, suggesting a potential turning point for the company. If sales and earnings continue to grow, there may be an opportunity to adjust its valuation multiple upward, positioning Pfizer for a more favorable comparison with its industry peers.