7 Growth Stocks That Are Trading at a Bargain Price

April 4, 2023

in Stocks

Reading Time: 8 mins read

Pfizer (PFE)

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Multinational biotechnology companies like Pfizer (NYSE:PFE) tend to be a bit predictable if not a little boring. Revenue and profits come from their commercially available medicines. And the best ones have a deep pipeline of drugs and therapeutics in development. But nothing’s been boring about owning PFE stock in the last two years. The stock rocketed higher when it won the race to earn an emergency use authorization for its Covid-19 vaccine, Comirnaty. However, the stock has plunged more than 25% as investors expect demand for the vaccine to wane.

This is an example of where investors have to use a wider lens. In March 2023, Pfizer announced it would pay $43 billion to acquire Seagen (NASDAQ:SGEN). This acquisition will enhance Pfizer’s oncology portfolio, and the company expects it to add $10 billion in revenue by 2030.

That’s a long time away, but Pfizer fits into the bargain growth stocks category. The company’s P/E ratio is just over 7x. And analysts give PFE stock a mean price target of $53.10 which is 31% higher than the current price. Plus, the company pays a dividend with an attractive 4.07% yield, and it has been increasing the dividend in each of the last 12 years.