Pfizer Inc. (PFE): A Bull Case Theory

We came across a bullish thesis on Pfizer Inc. on HatedMoats’s Substack. In this article, we will summarize the bulls’ thesis on PFE. Pfizer Inc.'s share was trading at $25.27 as of December 1st. PFE’s trailing and forward P/E were 14.97 and 8.50 respectively according to Yahoo Finance.

Pfizer Inc. (PFE) has emerged from the post-COVID period as a transformed company focused on sustainable growth through its expanding pipeline and business restructuring. While pandemic vaccine and therapeutic revenues have declined sharply, Pfizer has diversified its portfolio with a strong late-stage pipeline spanning oncology, immunology, and rare diseases. The company’s oncology franchise remains a key growth engine led by Ibrance and newer launches such as Padcev and Tivdak, while its mRNA platform and RSV vaccine Abrysvo illustrate the depth of its R&D capability.

Recent acquisitions, notably Seagen for $43 billion, strengthen its position in antibody-drug conjugates and bolster long-term growth visibility. Pfizer’s management has focused on operational efficiency and debt reduction following the Seagen transaction, with cost synergies and disciplined capital allocation expected to support margin recovery and shareholder returns. Despite near-term earnings pressure from declining COVID products, Pfizer’s core portfolio and pipeline suggest a return to top-line growth from 2025 onward, supported by product launches targeting multibillion-dollar markets.

The stock trades at a significant discount to historical averages and large-cap pharma peers, offering an appealing entry point given its 6%+ dividend yield and improving free cash flow trajectory. Investor sentiment remains cautious due to lingering revenue normalization and R&D execution risks, but these appear priced in. With a diversified portfolio, strong balance sheet, and renewed strategic focus, Pfizer represents a potential turnaround story where stabilization and successful execution could unlock meaningful shareholder value over the next cycle.

Previously we covered a bullish thesis on Pfizer Inc. (PFE) by Akim Guerreiro in September 2024, which highlighted its strong dividend yield, cash flow recovery, and growth potential from the Seagen acquisition. The stock has depreciated about 13.34% since our coverage due to post-COVID normalization. The thesis still stands as fundamentals remain solid. HatedMoats shares a similar view but emphasizes portfolio diversification and operational focus.

Pfizer Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held PFE at the end of the second quarter which was 99 in the previous quarter. 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.