Morningstar Reduces Moat Rating For Pfizer (PFE) To Narrow

Pfizer Inc. (NYSE:PFE) is one of the Best Large Cap Value Stocks to Invest In. Morningstar reduced its moat rating for the company to narrow due to the portfolio setbacks as well as policy risk. That being said, the firm also added that Pfizer Inc. (NYSE:PFE)’s foundation is strong on the basis of steady cash flows coming from the basket of diverse drugs. Furthermore, its large size possesses strong competitive advantages in developing new drugs. These factors, along with a broad portfolio of patent-protected drugs, have supported Pfizer Inc. (NYS E:PFE) in building an economic moat around its business, opines Morningstar.

The company’s overall strong Q1 2025 performance reflects its continued emphasis on commercial execution. Its focus on operational efficiency and financial discipline continues to drive healthy results to its bottom line. Pfizer Inc. (NYSE:PFE) saw revenues of $13.7 billion in Q1 2025, while its adjusted diluted EPS came in at $0.92. The company’s aggressive cost-saving initiatives can significantly improve Pfizer Inc. (NYSE:PFE)’s long-term profitability. Therefore, by improving operational efficiency, it can allocate more resources to high-potential areas, including pipeline development and strategic acquisitions.

While we acknowledge the potential of PFE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.