Among the largest biopharmaceutical companies, New York-based Pfizer continues to grab headlines on the monumental development of its successful Covid-19 vaccine with BioNTech.
The Pfizer shares had a strong performance, rising 60.42% in 2021 on the approval and contribution of the Covid vaccines. The stock is down 8.36% year-to-date.
Pfizer (PFE) is considered a large-cap stock with a market capitalization of over $300 billion and is included in the S&P 500 index and the S&P Healthcare sector. You can calculate the market capitalization by multiplying its stock price by the number of shares outstanding.
The price-earnings or PE ratio is the current market price divided by the company’s earnings per share or EPS. This ratio is the primary benchmark of valuing a stock, demonstrating how expensive the shares are relative to the company’s profits.
Pfizer’s dividend yield is the annual cash dividend paid of $1.60 per share to an investor as a percentage of its current market price, or 2.96%. This yield is above average compared to the S&P 500’s rate.
Pfizer has a strong dividend track record, with 12 consecutive years of dividend increases.
Comparable Peers To Pfizer
Just as real estate agents and their clients will look at comparable (“comps”) homes to help them judge the prospective home they may buy, so should investors when buying into a specific sector, like healthcare.
Where Does PFE Stock Belong In Your Portfolio? Pulling It Together
Investors consider PFE as a large-cap income stock based on its size and dividend track record and often listed as a blue-chip for its long well-regarded reputation. With its steady growth and low valuation relative to its fundamentals, PFE shares are more of a value play than a growth stock better reflected by the tech sector.
Marketers appeal to our emotions so that we will be better customers. Their tactics are a fact of life likely to continue if not rise in the future. How you react to these efforts and your own biases is critical. Be aware of your emotions and stop and think when making money decisions.