Pfizer Inc. (PFE:NYSE)
Price at Preparation: $28.16 (May 6th, 2024)
What they do
Pfizer Inc. (PFE:NYSE) is a research-based global biopharmaceutical company. The Company engages in the discovery, development, manufacture, marketing, sales and distribution of biopharmaceutical products worldwide. Its Biopharma segment is engaged in the science-based biopharmaceutical business. Its Biopharma segment includes the Pfizer Oncology Division, the Pfizer U.S. Commercial Division and the Pfizer International Commercial Division. Its product categories include oncology, primary care and specialty care. The firm works across developed and emerging markets to advance wellness, prevention, treatments and cures that challenge the most feared diseases.
This week at Theta Bandits, we are bringing a pick that is looking for a turn around from a collapse in stock price over the past year – let’s check it out!
Opinion
Pfizer Inc. (PFE:NYSE) over the past 52-weeks has traded in a range from $40.37 USD down to $25.20 USD and has been in a steady decline, keeping us on the sidelines. Going back a little further, we can see a high at approximately $60 USD. From the current price, the 12-month Price Targets (PT) estimate an average upside of +15.57% at $32.54 USD, with a maximum of 88.21% at $53.00, while seeing a minimum with a downside of -7.67% at $26.00 USD. The stock has looked to start a turn around recently, but the stock also boasts a 5.93% dividend of $0.42 / share that is paid out quarterly. The next ex-dividend date is Thursday, May 9th, 2024, which could lead to a slight pullback and price volatility in the short term.
This stock does offer dividends as mentioned, so we are expecting some price appreciation as well as dividends for total profit from this stock. Usually, stocks that offer dividends are less volatile, but given how far the stock has eroded there could potentially be an attractive price appreciation in the recovery. As with any stock, the market is never a “sure thing” – one must adjust one’s strategy to fit their personal risk profile.
Plan
Using the visual aid below, we show the 52-week high in blue and the 52-week low in red and the 12-month PTs in green. Today’s price circled in blue has had a nice run-up and just crossed through a resistance point at $28.00 USD, but remember the ex-dividend on May 9th, 2024 which could offer some volatility. Since the stock has been in a downtrend for the last year shown, typically we should expect a little bit of sideways movement before a break higher. Using the support/resistance lines, be sure to take profit and set stop limits to mitigate risk to potential downside. The target range can be aimed at the 12-month average PT of $32.54 USD. It would be prudent to only have profits remaining to work for any further price appreciation.
For more content consider our Theta Bandits Discord community, a hub for traders to ask questions, share ideas and strategies like the approach above for various other tickers daily. Traders in this community have attacked this very same position using a variety of methods discussed in previous Top Pick Tuesdays.
RISKS
It is important to both secure profit and limit losses as discussed above. Make sure to plan your trade with-in your risk tolerance and give the trade the time required to be successful, while setting and updating limits to mitigate risk and setting exit points for your position.
Disclaimer: This article is for informational and educational purposes only, not investment advice. We recommend researching and consulting with a financial advisor before making investment decisions. All actions based on this information are at your own risk.
