6 Reasons to Avoid Pfizer (PFE) Stock Without Hesitation

By Lee Jackson Published Dec 14, 11:48AM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

6 Reasons to Avoid Pfizer (PFE) Stock Without Hesitation — © Mario Tama / Getty Images

Pfizer Inc. (NYSE: PFE | PFE Price Prediction) was printing money during the Covid pandemic. Still, those days are way in the rearview mirror as investors not only see shrinking sales but also see the potential for a social and consumer backlash not unlike what some other U.S. companies have faced.

Pfizer stock traded as high as $59 in December of 2021; the shares closed trading recently at $29.69, a stunning 50% plunge from the high. In addition, the company announced they were cutting an astonishing $9 billion from their revenue estimates as sales of the COVID-19 vaccine and the oral drug Paxlovid have plunged.

Wall Street remains very negative

Of the 17 companies on Wall Street covering Pfizer, only 6 have Buy ratings, while 11 have Hold or Neutral ratings. While we couldn’t find any Sell ratings, the lack of analyst support is unsurprising after the stock’s massive tumble.

Covidbooster shots are no silver lining

Despite health officials urging anyone six months and older to get a booster shot, a very skeptical public has been avoiding it like the plague, at least so far. According to a new survey, only 1 in 4 Americans want another shot.

Paxlovid sales have disappeared

Sales of the pill, which is also used to combat Covid, dropped an incredible 97% to $202 million. This comes after Paxlovid generated $19 billion in sales in 2022. The five-day course of Paxlovid costs a whopping $1400.

The third quarter results were horrible again

As noted, the drop in consumers getting COVID-19 booster shots was a significant drag on third-quarter results, when the company posted a staggering 41% operational decline in sales and losses that exceeded expectations. While sales for the company’s RSV drug beat expectations, they were nowhere near enough to match the COVID-19 booster decline.

2023 results will also be horrible

For calendar 2023, Pfizer expects to report earnings per share between $1.45 and $1.65 on revenues expected to come between $58 billion and $61 billion. Hitting the midpoint for earnings would be a staggering 76% decline over 2022 and an incredible 41% drop in sales.

Dismal Future Likely

As we noted, while Wall Street hasn’t abandoned Pfizer, the strong dividend and big sell-off keep most from going to a Sell rating; the future is not that bright. While the company has many other products, none will be the massive cash cow the COVID-19 vaccine was. Most sell-side analysts and portfolio managers view the shares as a value trap that could tread water for years.

About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.