Pfizer (PFE) is in a period of transition right now in an effort to reposition itself as the leader in the pharmaceutical manufacturing industry. Its balance sheet and value in the market is less than stellar so it is an ideal time for investors to consider Pfizer for long-term investment opportunities. Pfizer is divesting its non-essential models in order to refocus on its core functions regarding high margin pharmaceutical manufacturing.
The transition period is needed due to Lipitor’s decline in sales numbers after the patents expired in 2011. Pfizer has a large pipeline of opportunities and positive cash flow available to buy back shares or focus on effective acquisitions to help increase its success in gaining more market share in the industry.
This is the optimal time to buy shares in Pfizer as the stock price has been trending upwards recently. With the transition underway, if it’s successful, this may be the lowest stock price available for investors interested in Pfizer. The price has currently been around $22, the 52 week range has been from $16 to $23. This is the lowest price available among the major pharmaceutical brands like Merck (MRK), Johnson & Johnson (JNJ), Bristol-Meyers Squibb (BMY), and Abbott (ABT).
The 50 day and 200 day moving average are right around the current stock price at over $22 and over $21, respectively. The beta is less than one while net and operating margin are adequate at over 14% and over 29%, respectively, even though they have decreased since 2011.To continue reading, click here.
