The coronavirus pandemic has once again reminded the world about the most precious thing in life – health. Today, people are very attentive to what their bodies are telling them. Tracking the global COVID-19 statistics, the whole world is now looking forward to the miraculous cure for the deadly virus.
Luckily, there is hope as several pharmaceutical companies have offered the world their unique vaccines that help the human body to either resist the COVID-19 infection or have just mild symptoms, avoiding destructive consequences for the body. Pfizer has been one of these vaccine providers.
Today, in the midst of yet another coronavirus wave, let’s talk about how the corporation instantly reacted to the pandemic-induced crisis. In addition, we will find out how the production of the vaccine against the virus has affected Pfizer’s stock and what potential for growth the company has, according to experts.
About company
Pfizer is one of the world’s leading pharmaceutical firms. It is involved in the production of innovative drugs for multiple therapeutic fields. Above all else, the company conducts research and develops special medicines used to treat rare diseases, investing more than $7 billion annually in this sphere.
In 2020, along with Germany’s pharmaceutical giant BioNTech, Pfizer developed a COVID-19 vaccine that proves to be effective in over 90% of cases. In this light, the value of the company’s stock skyrocketed.
Pfizer Inc. was founded in 1849 in Brooklyn. The firm had achieved its first noticeable results by 1880. Back then, Pfizer gained popularity after it started to produce citric acid, which was in high demand at the end of the 19th century.
By the way, the history of Pfizer’s success is marked by sudden upward leaps owing to several triumphant achievements. Nevertheless, the company’s management has repeatedly said it intends to abandon such a strategy in the future and invest most of the funds in biotechnology.
Today, the US pharmaceutical giant specializes in the production of drugs used to treat endocrinological, neurological, cardiovascular, urological, and other diseases. Pfizer also manufactures vitamins, vaccines, and hematologic drugs.
Pfizer’s headquarters are in New York, US. At the same time, the firm has many subsidiaries worldwide. So, Pfizer produces drugs in 46 countries, including Australia, Switzerland, Japan, France, etc., and has representative offices in more than 100 countries.
For instance, OOO Pfizer, a subsidiary of the European division of the pharmaceutical giant, has been actively operating in the territory of the Russian Federation since 2007. The Russian office sells pharmaceutical products manufactured by Pfizer in the United States to government organizations and pharmacies.
Pfizer's stock
Pfizer's stock is traded on many stock exchanges, including the NYSE, under the ticker* PFE. More than 15 years ago, the company was included in the S&P 500 and the Dow Jones, the largest US stock indices, which made the company’s shares an attractive instrument for institutional investors.
Pfizer’s stock is also actively traded on European stock exchanges, such as the Frankfurt, Dusseldorf, Berlin, Munich, and London stock exchanges.
Nowadays, the total number of the company’s shareholders reaches over 195,000 firms and individuals.
Speaking of the most impressive price changes in Pfizer’s stock on record, the COVID-19 pandemic has had a huge positive impact on its value. Since March 2020, when the WHO declared the pandemic, the pharmaceutical giant’s stock swelled 82.40%.
To invest in Pfizer Inc, you should register an account with a brokerage company that has access to global stock exchanges, including the NYSE. It will take you just 3 minutes to open an account with InstaForex.
The minimum trade size is 1 lot, which equals 1 share of the company. To calculate your profit, you can use Trader’s Calculator on the InstaForex website.
Then, feel free to start trading Pfizer's stock or shares of any other popular company. The MT4 trading platform from InstaForex, favored by all traders, will become your ideal tool for trading.
*Ticker is an abbreviation of trading instruments quoted on the exchange.
Track changes in Pfizer's quotes online on the InstaForex website.
Dividends
Pfizer has been paying quarterly dividends to shareholders for 38 years. Shareholders are paid on the first days of the month following the end of the quarter.
The fact that the company pays dividends makes Pfizer’s stock a highly attractive instrument for investors willing to put their money in assets that bring periodic profits.
Over the past several years, Pfizer's annual dividend payments to shareholders have reached 3.91%. Owing to such a high percentage of dividend yield, Pfizer stands out from other companies traded on the US stock market.
Pfizer's dividends may increase in the near future, making the company's stock an even more desirable asset for investors, experts emphasized.
Factors affecting Pfizer's quotes
When you learn how to analyze numerous factors affecting the company, you will be able to forecast the perfect timing for buying and selling Pfizer’s shares.
So, the following factors deserve your special attention:
- News. When trading, it is important that you monitor the latest information about the US stock market and its pharmaceutical sector * in particular. When the global situation in the market deteriorates, it usually results in losses for drug manufacturers. In addition, growing tension between certain states has a negative impact on quotes (the introduction of sanctions and counter-sanctions limit the operations of pharmaceutical giants).
- Investments in US assets. It happens that Pfizer’s stock reacts to the inflow of funds from international investors in large US companies. Thus, when investors from China or Europe purchase shares issued by American issuers, the value of the company’s stock increases.
- The production of new drugs by competitors. Pfizer’s quotes directly depend on the development of substitutes for drugs manufactured by Pfizer Inc. Oftentimes, alternative drugs from competitors are sold at a lower price, which means that they are in higher demand among American and foreign consumers.
- Changes in the healthcare system. New regulatory amendments introduced by the US government to the US health care industry have a strong effect on Pfizer's stock.
- Sales geography. Pfizer sells its drugs worldwide. So, the manufacturer may incur losses in case of extreme changes in the exchange rates of the national currencies of particular countries versus the US dollar. As a rule, when the company's income falls, it negatively affects its stock price.
- Product reviews. Pfizer’s stock often soars when doctors and consumers leave positive reviews about the company’s drugs. The pharmaceutical giant traditionally performs better financially when it produces successful drugs, which also has a positive effect on its stock.
- Sales of branches. As a rule, the stock shows growth when the corporation sells some of its divisions to other companies. For example, Pfizer Inc. yields additional profit from selling a subsidiary involved in the manufacture of health care products.
- The volume of new products released. Pfizer’s stock price directly depends on the number of drugs that are at the phase of clinical testing because it means they may soon be available for sale. Currently, the giant has about 100 such products.
Read the latest news about Pfizer Inc. and the global pharmaceutical industry online in the Analysis section on the InstaForex website.
Outlook
Over the past decades, Pfizer has been actively buying out other pharmaceutical companies. Experts believe that Pfizer is likely to adhere to the same strategy in the future and continue to acquire manufacturers in the biotechnology industry. This, in turn, may have a positive impact on such financial indicators of the pharmaceutical giant as profit and revenue.
In addition, Pfizer is planning to increase production volumes of new prescription and non-prescription drugs and medicines used to treat rare diseases. Pharmaceutical market analysts say this move will be welcomed by both doctors and consumers around the world. Consequently, Pfizer could yield higher long-term profits.
Amid the COVID-19 pandemic, the sales volume of Pfizer’s Prevenar 13 vaccine will continue growing. Indeed, it is one of the most popular vaccines sold today. Global recognition of Pfizer’s products may boost its stock in the mid-term.
The company is now actively increasing the production of drugs that will replace the previously manufactured ones. The producer pays special attention to medicines used to treat Alzheimer's disease and antidepressants. Pfizer is expected to yield substantial profit from selling these types of drugs.
Pfizer’s primary goal is to expand the range of manufactured pharmaceutical products. The company is likely to launch the production of pharmaceuticals under new brand names unknown to consumers.
Conclusion
Since Pfizer Inc. is one of the leading pharmaceutical companies in the US stock market today, its shares are in high demand among institutional and private investors.
Pfizer has great potential for growth, experts emphasize. So, market participants should not miss a chance to invest in the company.
If these facts have made you think it is time to invest in Pfizer, go to the InstaForex website and open an account. It will take you only a few minutes to register.
Back to articles
