Pfizer: Is It a Good Investment in the Long Term?

• Pfizer is known for increasing its dividend for 11 years; projected earnings estimate its ratio to rise to 32.92%.
• The chart shows strong buying pressure with a healthy and necessary retracement. 
• The current trading rate is 51.40, which is 10.31 less than this year’s high. 

Established in 1849 by cousins Pfizer and Charles Erhart in Brooklyn, New York, Pfizer Inc. is the world’s leading pharmaceutical company. It develops, markets, manufactures, distributes and sells biopharmaceutical products worldwide. 

The stock is trading at $51.40, down by 4.12% in the last 24 hours. Its previous close was $53.61, while today’s opening was at a positive note of $53.01. However, the current rate is still down by 10.31, a not-so-easy feat for the company. 

Its market cap stands at $288.52 billion, while its volume remains at 65.06 million shares. The projected earnings are at negative 24.77% from $6.46 to $4.86 per share.

Daily Chart Analysis

The daily chart analysis shows strong buying pressure from the second week of October 2022. This strength has not allowed sellers to gain considerable traction. However, the sudden price dip can be considered a healthy correction, as such correction is required for proper market functioning. 

The dip is not expected to continue for a long time, as the price is expected to be in a consolidated state. Moving between $48.18 and $54.78 marks. There is a rare possibility of a downward breakthrough, but even if some unforeseen events occur, it won’t go below $41.58.

If the price makes a positive breakthrough, then it shall respect R1 at $57.57 and hover between $54.78 and $57.57 mark for some time before breaking through and respecting R2 at the $59.92 mark.

Weekly Chart Analysis

The weekly analysis is also indicative of strong buying pressure in the market. The current retracement, if it continues, is expected to find S1 at $46.97 and S2 at $41.33. The price is expected to move between its current rate and S1 for some time. It is expected to move upwards from that point and find R1 at $56.49, where it shall move for some time and might also respect R2 at $61.88, but that’s a rare possibility. A complete breakthrough of R2 can also happen if positive news hits the pharmaceutical market.   

Strong Dividend

Pfizer’s dividend has been increasing for the past 11 years. At the same time, its payout ratio is at 30.77%, which is considered to be a healthy ratio. When the company’s estimated earnings are considered, Pfizer could be expected to raise its dividend payout ratio to 32.92%. 

This shall be a point of consideration for long-term investors.  

Competitors in the arena

Major competitors in the “pharmaceutical preparation” industry, of which Pfizer is also a part are, AbbVie (ABBV), Merck & Co. Inc. (MRK), Bristol-Myers Squibb (BMY), Johnson & Johnson (JNJ), AstraZeneca (AZN), Abbott Laboratories (ABT), Sanofi (SNY), etc. 

Disclaimer 

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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