Pfizer stock is consolidating after the Food and Drug Administration authorized its second Covid booster shot for people age 50 and older.
XThis will be the fourth dose for this group. Pfizer (PFE) with BioNTech (BNTX) and Moderna (MRNA) are now allowed to give second boosters. The FDA will also allow immunocompromised people as young as 12 to receive another Pfizer booster shot.
Pfizer Chief Executive Albert Bourla recently said the companies hope to launch their three-dose Covid vaccine for children under the age of 5 in May. But Moderna could launch its shot first after unveiling promising data for a two-dose vaccine in children under the age of 6.
As it stands, Pfizer expects $98 billion to $102 billion in full-year sales. The company says its Covid shot, Comirnaty, and antiviral treatment called Paxlovid could generate $54 billion of that, combined. The company also expects adjusted profit of $6.35-$6.55 per share.
Pfizer recently inked a gene-editing deal with Beam Therapeutics (BEAM), and deals with Codex DNA (DNAY) and privately held Acuitas Therapeutics to bolster messenger RNA efforts — the technology behind Comirnaty. Pfizer just wrapped its Arena Pharmaceuticals buyout, moving deeper into treatments for inflammatory disorders.
So, all in all, is PFE stock a buy?
Pfizer Stock Fundamentals: Earnings Strong
In the fourth quarter, adjusted Pfizer earnings were $1.08 per share on $23.84 billion in sales. Earnings skyrocketed 152% and sales surged 105%. But the metrics were mixed with only profit beating analysts' estimates. Comirnaty generated $12.5 billion in sales, topping forecasts. Paxlovid brought in $76 million in sales, below broad calls for $143 million.
Revenue from blood thinner Xeljanz beat projections at $1.5 billion, up 19%. Sales of Xeljanz, a treatment for inflammatory conditions, and a heart-disease drug, Vyndamax, also came in above expectations at, respectively, $721 million and $561 million.
But sales of Pfizer's biggest cancer drug, Ibrance, fell 3% to $1.39 billion. Revenue from Prevnar, a pneumonia vaccine, also lagged at $1.3 billion. Sales fell 26% due to the timing of government orders, according to one analyst.
Overall, total fourth-quarter growth lined up with CAN SLIM rules for investing. Investors are encouraged to seek stocks with 20%-25% recent sales and earnings growth. But excluding the impact of the Covid products, sales fell 2%.
Big institutional investors — who account for up to 70% of all market trades — usually look for stocks with accelerating earnings and sales growth.
That trend is expected to continue in the current quarter. Analysts polled by FactSet call for adjusted income of $1.61 a share and $24.73 billion in sales, rising a respective 73% and 70%.
Pharmaceutical Company's Annual Metrics
Pfizer's sales popped 95% to $81.29 billion in 2021. Top sellers included vaccines and its cancer treatment business. Overall, vaccine sales were $42.63 billion. Comirnaty brought in 86% of that. Cancer treatments generated $12.33 billion, up 13%.
But Pfizer's inflammation and immunology sales fell 3% to $4.43 billion. Revenue from Enbrel, an Amgen (AMGN)-partnered treatment for inflammatory conditions, tumbled 12% to $1.19 billion.
For 2022, analysts surveyed by FactSet call for Pfizer to report earnings of $7.37 a share, minus some items, up 67%. Analysts call for sales to pop 33% to $108.21 billion.
Pfizer Stock And Coronavirus Vaccine News
Pfizer and BioNTech are working on an omicron-specific booster. The FDA also just signed off on the companies' second booster shot for people age 50 and older and immunocompromised people as young as 12 at five months.
Pfizer is also seeking full approval for its vaccine in adolescents age 12-15. As it stands, the shot is fully approved only for age 16 and older, but it's authorized for children as young as 5. The shot for children age 5-11 is one-third the dosage given to older children, teens and adults.
The company also is testing a one-tenth sized dose in children under the age of 5. The vaccine appears as effective in children under the age of 2 as it does in older teens and adults. But the vaccine didn't meet that bar in children age 2-5. Pfizer and BioNTech are testing three doses in those age groups.
On the antiviral side, Pfizer tested Paxlovid in unvaccinated Covid patients at risk of developing severe disease. It cut down on hospitalizations by 89% when patients started treatment within three days of symptoms beginning. No Paxlovid recipients died.
In people with a standard risk of severe disease, the regimen cut down on hospitalization by 70%. There were also no deaths among these Paxlovid recipients.
The results were better than Merck (MRK) and Ridgeback Biotherapeutics' rival pill, molnupiravir, which reduced hospitalizations by 30%. One molnupiravir patient died. Molnupiravir also carries the risk of cancer or passing birth defects onto unborn children in pregnant women.
Technical Analysis: PFE Stock Eyes Buy Point
PFE is consolidating with buy point at 61.81, according to MarketSmith.com. The stock traded in line with its 50-day moving average on April 4. Shares are also well above their 200-day line.
(Related: Keep tabs on chart patterns by visiting IBD's MarketSmith.com.)
Shares of Pfizer have a Composite Rating of 98 out of 99. The measure weighs a stock's key growth metrics against all other stocks. Leading stocks tend to have CRs of 95 or better, according to IBD Digital.
Pfizer stock also has a Relative Strength Rating of 87 out of a best-possible 99. The RS Rating measures a stock's 12-month running performance against all other stocks. That RS Rating means Pfizer stock ranks in the top 13% of all stocks in terms of performance.
The pharmaceutical company's EPS Rating, a measure of profitability, is a 86 out of a best-possible 99. The EPS Rating compares a stock's recent and longer-term earnings growth against all other stocks.
So, Is PFE Stock A Buy Right Now?
Based on CAN SLIM rules of investing, PFE stock isn't a buy right now. It's consolidating, but shares have yet to break out. Investors are encouraged to buy a stock when it rises above and is within 5% of its entry.
The company is expected to report bullish growth in the first quarter, keeping it in line with CAN SLIM advice. But that will mostly come on the back of its Covid products.
It's important to keep tabs on how Pfizer stock performs as Covid moves into its endemic phase. Results appear promising so far, but it will be important to see how the company deals with the dominance of the omicron variant.
To find the best stocks to buy and watch, check out IBD Stock Lists. Make sure to also keep tabs on stocks to buy or sell.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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