Pfizer‘s (PFE) stock turnaround has stalled somewhat in August despite an unexpectedly strong June-quarter report, on a misstep for its combination Covid and flu vaccine.
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Shares topped out in December 2021 and largely tumbled for several years. Pfizer stock looked ready to reverse its fortunes from April through July. But shares skidded after Pfizer said its BioNTech (BNTX)-partnered Covid and flu combination shot generated a low number of antibodies that can handle influenza B strains.
Though it protected against influenza A and Covid, the companies say they may now have to adjust the vaccine. That puts Pfizer behind Moderna (MRNA), which had more promising results for its combination shot.
Promisingly, Pfizer won approval for a hemophilia B gene therapy in the U.S. and Europe, unveiled positive results for a hemophilia A gene therapy and posted a second-quarter beat. In response to the latter, Pfizer hiked its guidance for the year by $1 billion at the midpoint.
Is Pfizer stock a buy or a sell today?
Pfizer Stock Fundamentals
In the June quarter, Pfizer earned an adjusted 60 cents per share on $13.3 billion in sales. Both beat expectations. Earnings declined 11% while sales rose 3% operationally. It was the first quarter since December 2022 that sales increased year over year.
Sales of heart disease treatment Vyndaqel surged 71% to $1.32 billion and easily topped forecasts. Padcev, a cancer drug Pfizer acquired with Seagen, brought in $394 million in sales, coming in above projections for $352.6 million.
Revenue from the Covid vaccine Comirnaty plummeted and missed expectations. But Covid treatment Padcev topped the Street’s call and soared 79%.
For the third quarter, analysts project 54 cents earnings per share and $13.56 billion in sales. Profit would reverse from a year-earlier loss and sales would climb more than 8%.
This year, Pfizer expects adjusted earnings of $2.45 to $2.65 a share and $59.5 billion to $62.5 billion in sales. At the midpoints, earnings would surge 39% as sales pop more than 4%.
Obesity Treatments In Focus
Investors have zeroed in on Pfizer’s efforts in obesity treatment. The company says it plans to send a drug called danuglipron into additional testing. Danuglipron is a daily pill, compared to leading shots from Eli Lilly (LLY) and Novo Nordisk (NVO).
But Leerink Partners analyst David Risinger doesn’t expect Pfizer to have effectiveness and safety test results until 2026. Danuglipron is one of three obesity treatment candidates Pfizer has in testing. The company has a similar drug that mimics GLP-1 — a hormone tied to satiety and stomach emptying — and a third with an undisclosed mechanism.
The field for oral weight-loss drugs is becoming increasingly crowded. Roche (RHHBY), Viking Therapeutics (VKTX), Structure Therapeutics (GPCR), AstraZeneca (AZN) and others are all in this space.
Pfizer Stock And Recent News
Outside of obesity treatment, Pfizer recently launched PfizerForAll, a digital platform to help people connect with health care providers for migraine, Covid or flu. It also connects people with vaccines for Covid, flu, respiratory syncytial virus and pneumonia.
Recently, the Food and Drug Administration signed off on updated Covid vaccines from Pfizer and Moderna. These shots aim to block against the KP.2 strain and are recommended for people age 6 months and older.
Technical Analysis: PFE Stock Tops 50-Day Line
Pfizer stock is trading below its 50-day moving average, but remains above its 200-day line. The stock broke out of a flat base with a buy point at 29.73 on July 17, MarketSurge shows. But shares are now well below their buy zone.
In fact, Pfizer stock tiptoed close to a sell zone on Aug. 16, falling more than 6% below its entry. Savvy investors are encouraged to cut their losses when a stock falls 7% to 8% below is entry.
(Related: Keep tabs on chart patterns by visiting IBD’s MarketSurge.)
Pfizer stock has an IBD Digital Composite Rating of 45 out of a best-possible 99. The CR is a measure of a stock’s fundamental and technical measures. Shares also have a Relative Strength Rating of 28, a measure of 12-month performance.
Is PFE Stock A Buy Or A Sell?
Based on savvy rules of investing, Pfizer stock was a sell on Sept. 3 when shares definitively undercut their 50-day line. Shares are below their chase zone.
Pfizer stock still has to prove its fundamental and technical merit.
The company is trying to shore up its pipeline to return to the growth it saw at the height of the pandemic. The RSV vaccine and a potential approval in obesity treatment could be key.
To find the best stocks to buy and watch, check out IBD Stock Lists. Make sure to also keep tabs on stocks to buy or sell.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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