Buy PFE Now Double Your Money in 5 Years
by sam · 16 things on Twos
- Key Points
- Pfizer's earnings growth and dividends could be enough to deliver a total return of more than 100% over the next five years.
- Two wild cards hold the potential to boost Pfizer's prospects of doubling even more.
- Several risks could prevent the stock from doubling, however, including patent expirations and potential pipeline setbacks.
- Stock prices follow earnings
- Adjusted earnings projected to increase by risk adjusted compound annual growth rate in the double digits thru 2025
- Earnings + juicy dividends= investors wet dream
- The projected growth rate is actually a pessimistic projection as it does not include the effects of the covid 19 vax
- Projected covid earnings alone= 33.5 billion this year (not including a recent order of 200 million doses by the US government
- PFE total return has doubled over the last 8 years while being weighed down by declining sales and old drugs losing patents etc.
- New covid variants could drive the need for more vaccines and PFE an Moderna are best set for profits if this happens
- Oral antiviral drug Pfizer has developed will come soon and be big for earnings
- Pfizer will use Q2 earnings to continue to pursue business development according to CEO
- Cons
- Some key patents expire in 2025-2026
- Covid earnings could diminish in coming years as world gets a better handle on the virus