Pfizer Stock Rebounds From Multi-Week Lows
Shares of Pfizer gained upside momentum and moved away from multi-week lows after reports indicated that the company planned to apply for U.S. authorization of its coronavirus vaccine for kids aged five and under in November.
Meanwhile, Pfizer’s vaccine was recommended as a booster shot for people over the age of 50 in the UK. It was also recommended for all vulnerable people.
The stock has been under pressure in recent weeks as traders took profits after the major rally which took the stock to new all-time high levels. However, the stock found support in the $44 – $45 range and is currently trying to rebound as traders prepare for potential positive catalysts.
What’s Next For Pfizer Stock?
A recent article in Lancet, written by two departing FDA officials and scientists from WHO, argued that booster shots were not required for the general population. This article has put some short-term pressure on vaccine stocks, but they quickly managed to recover as traders focused on the expanding market for vaccines.
The outlook for vaccine demand in 2022 is exceptional since most developed countries will likely introduce booster shots, less-developed countries have a long way to complete their initial vaccination process while vaccines can be also introduced to kids and teenagers.
Currently, analysts expect that Pfizer will report earnings of $4.09 per share in 2021 and $3.6 per share in 2022, so the stock is trading at less than 13 forward P/E. While analysts expect that earnings will decline in 2022 compared to 2021, these estimates may change as demand for coronavirus vaccines will likely be stronger than originally expected.
In this light, Pfizer stock may attract value-oriented investors and speculative traders who are willing to buy the stock after the significant pullback due to its attractive valuation and potential upside catalysts.
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This article was originally posted on FX Empire