Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Pfizer Stock: Don’t Be Scared by Moderna Momentum

Stock MarketsSep 15, 2021 02:00PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Pfizer Stock: Don’t Be Scared by Moderna Momentum

Pfizer (NYSE:PFE) stock has sunk 14% since August 18, when it hit a new high not seen since 1999.

With negative momentum picking up, could PFE stock be at risk of surrendering more of its summer gains, even as Delta variant cases climb?

Indeed, rival COVID-19 vaccine maker Moderna (NASDAQ:MRNA) has been stealing a great deal of the limelight from Pfizer in recent months.

I remain bullish on Pfizer stock, and don't believe that investors should treat any good news for Moderna as a material negative for Pfizer. (See PFE stock charts on TipRanks)

Moreover, Moderna stock's valuation has become quite hefty, as the stock has doubled up many times since last year. Pfizer has a much more modest valuation, a bountiful 3.4% dividend yield, and growth prospects that seem largely underrated.

The COVID-19 Defence Race

A recent Belgian study revealed that Moderna's COVID-19 shot produced twice as many antibodies than that of Pfizer's.

News of Moderna's more potent shot has given Moderna stock quite the shot in the arm, perhaps at the expense of Pfizer stock.

Still, the data doesn't suggest that Pfizer has an inferior vaccine. Pfizer's scientists were quick to defend their shot, noting that lower doses were intentional and aimed to reduce potential side effects.

It's not just news of Moderna's more potent jab that has investors siding with MRNA over PFE.

Recently, Moderna announced a combo shot that aims to boost protection against COVID-19, as well as the flu. This is just another innovation that has investors excited. Still, it's a mistake to count the larger, more mature Pfizer out of the game, seeing as it is more than capable of producing a similar vaccine of its own.

Earlier this year, Pfizer announced plans to launch a COVID-19 pill by the end of 2021. The oral drug, which is now in its mid-to-late stage trials, aims to prevent the coronavirus from multiplying.

Should the pill, which seems to show promise, launch at some point over the next several months, I find it hard to believe that Pfizer stock will remain stuck at these lows.

In any case, I think it's a mistake to count Pfizer out of the game just because Moderna has been making headlines.

Wall Street's Take

According to TipRanks’ analyst rating consensus, PFE stock comes in as a Hold. Out of 10 analyst ratings, there are two Buy recommendations, and eight Hold recommendations.

The average PFE price target is $45.70. Analyst price targets range from a low of $41 per share, to a high of $61 per share.

Bottom Line

After Moderna's past year of incredible gains, the company now commands a market cap of $174 billion. That's $76 billion shy of Pfizer's $250 billion market cap. Given today's valuations, and Pfizer's underrated innovative capabilities, I'd bet that the market cap gap between Pfizer and Moderna is likelier to widen again, rather than close.

Pfizer may be the larger of the two companies, but it's not much larger anymore. Despite its old age, Pfizer has proven it can innovate, with its effective COVID-19 vaccine and oral treatment in the works.

Disclosure: Joey Frenette owned shares of Pfizer at the time of publication.

Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

Pfizer Stock: Don’t Be Scared by Moderna Momentum
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email