Why Pfizer (PFE) is a Top Value Stock for the Long-Term

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

Pfizer (PFE)

With eight blockbuster products in its portfolio, New York-based, Pfizer, Inc. boasts a sustainable pipeline with multiple late-stage programs that can drive growth. Pfizer markets a wide range of drugs and vaccines. Its business comprises six business units — Oncology, Inflammation & Immunology, Rare Disease, Hospital, Vaccines and Internal Medicine. In November 2020, Pfizer spun-off its Upjohn unit, its off-patent branded and generic established medicines business, and combined it with generic drugmaker Mylan to create a new generic pharmaceutical company called Viatris. The Consumer Healthcare (CHC) segment, an over-the-counter (OTC) medicines business, was merged with Glaxo’s unit in July 2019 to form a new joint venture (JV). However, Glaxo divested the CHC JV into a new company called Haleon in July 2022. Pfizer owns a stake of 32% in Haleon and plans to sell the stake in a disciplined manner.

PFE boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of Pfizer are trading at a forward earnings multiple of 6.5X, as well as a PEG Ratio of 0.5, a Price/Cash Flow ratio of 7.8X, and a Price/Sales ratio of 2.3X.

Many value investors pay close attention to a company's earnings as well. For PFE, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.00 to $6.54 per share for 2022. Per share PFE boasts an average earnings surprise of 16.3%.

PFE should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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