Should You Buy Pfizer (PFE) Before a Breakout Begins?

We recently published Top 10 Trending Stocks as Famous Billionaire Predicts Massive AI Stock Rally Before Bubble Burst. Pfizer Inc (NYSE:PFE) is one of the trending stocks.

Analysts are getting excited about major healthcare stocks like Pfizer and expect a rally in the sector to begin soon. Evan Seigerman, head of healthcare research at BMO Capital Markets, explained in a latest program on CNBC why he’s bullish on Pfizer.

“You know, we saw that upside from the dividend. And now with the Metsera acquisition, I think they could be a credible player in obesity. The data was good, highlighting that their due diligence process was done well. And then in terms of the fact that they are in good graces with the administration, whether you know it comes to tariffs, concerns around drug pricing, I could see further multiple expansion. Of course, they do have some issues with their loss of exclusivity products, but many of the pharma names that I cover do. And I think that as long as they stay the course in terms of margin expansion and developing their pipeline, they’re in good shape.”

Pfizer Inc (NYSE:PFE) recently announced to buy Metsera, Inc. (NASDAQ: MTSR), a clinical-stage biopharmaceutical company working on treatment for obesity and cardiometabolic diseases. PFE is down about 1% so far this year.

Parnassus Investments, an investment management firm that focuses on owning a concentrated portfolio of U.S. large cap stocks, released its Parnassus Value Equity Fund second-quarter 2025 investor letter. Here is what they have to say about Pfizer Inc. (NYSE:PFE) in their investor letter:

“We exited our position in Pfizer Inc. (NYSE:PFE) due to reduced conviction in its turnaround thesis. This was driven by a weaker research and development pipeline following recent trial setbacks, including an oral GLP-1 drug, as well as increased likelihood of large merger and acquisition activities that could raise leverage amid growing regulatory and tariff headwinds.”

While we acknowledge the potential of PFE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, 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.