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 Stock Characteristics
Are Pfizer (PFE) shares appropriate for your portfolio? We will provide you with some of the investing attributes as of January 18, 2022, from Yahoo Finance:
Market Capitalization
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.
Price-to-Earnings Ratio
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.
Dividend Yield
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.
Beta Value
The beta value measures the volatility of a particular stock relative to the overall market. For large-cap stocks like PFE, the S&P 500 serves as the best benchmark and has a beta of 1.0.
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.
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