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Stock Spotlight 5/29/2024

Custom Instruction: Advanced Investor

This post was written using Daizy Scribe. To learn more aboutDaizy Scribe, click here.

About Pfizer Inc. (PFE)

Pfizer Inc. is a global leader in the biopharmaceutical industry, dedicated to discovering, developing, manufacturing, marketing, distributing, and selling a wide range of medicines and vaccines.

With a rich history dating back to its founding in 1849, Pfizer has established itself as a key player in various therapeutic areas including cardiovascular health, infectious diseases, chronic immune and inflammatory diseases, and oncology. The company's extensive portfolio includes well-known brands such as Eliquis, Comirnaty, and Paxlovid.

Headquartered in New York, Pfizer collaborates with several major pharmaceutical companies such as Bristol-Myers Squibb, Astellas Pharma US, Merck KGaA, and BioNTech SE. The company serves a diverse customer base comprised of wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, and integrated delivery systems.

Key Metrics

  • Market Capitalization: $163.65 billion
  • EBITDA: $9.62 billion
  • PEG Ratio: 0.256
  • Wall Street Target Price: $31.48
  • Book Value: $16.28 per share
  • Dividend Per Share: $1.65
  • Dividend Yield: 5.82%
  • Earnings Per Share (EPS): -$0.05
  • Revenue (TTM): $54.89 billion
  • Gross Profit (TTM): $66.23 billion
  • Forward P/E: 11.67
  • 52-Week High: $38.23
  • 52-Week Low: $24.83
  • Beta: 0.58


Risk Analysis of Pfizer Inc. (PFE)

Investing in Pfizer Inc. comes with a set of risks that investors should carefully consider. Over the past 12 months, the stock has experienced a return of -21.94%, significantly underperforming the S&P 500 benchmark which posted a return of 27.62% during the same period. This underperformance highlights potential volatility and market sentiment challenges that Pfizer faces.

The annualized standard deviation for Pfizer over the past year stands at 24.69%, compared to the benchmark's 11.53%. This higher volatility indicates that Pfizer's stock price has been more prone to fluctuations, which could be attributed to factors such as market reactions to drug approvals or regulatory decisions. The expected volatility further supports this observation, with Pfizer at 26.19% versus the benchmark's 17.33%.

The Sharpe ratio for Pfizer over the past year is -1.10, contrasting sharply with the benchmark's 1.94. A negative Sharpe ratio suggests that the stock has not provided adequate returns for the level of risk undertaken by investors. The maximum drawdown for Pfizer over the past year is -34.77%, significantly deeper than the benchmark's -10%. This metric underscores the potential for substantial losses during market downturns.

Value at Risk (VaR) at a 99% confidence level estimates that Pfizer could face a maximum loss of -3.97% in a single day, compared to -3.06% for the benchmark. Conversely, the potential upside at a 99% confidence level is estimated at 4.45%, higher than the benchmark's 2.61%. While this indicates potential for gains, it also reflects the inherent risk and volatility associated with Pfizer's stock.