Based on the aggregated intelligence of 150,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, pharmaceutical giant Pfizer
With that in mind, let's take a closer look at Pfizer's business and see what CAPS investors are saying about the stock right now.
Pfizer facts
|
Headquarters (Founded) |
New York City (1849) |
|
Market Cap |
$140 billion |
|
Industry |
Pharmaceuticals |
|
Trailing-12-Month Revenue |
$50 billion |
|
Management |
CEO Jeffrey Kindler (since 2006) |
|
Return on Capital (Average, Past 3 Years) |
13.1% |
|
Cash / Debt |
$26 billion / $48.7 billion |
|
Dividend Yield |
4.1% |
|
Competitors |
Merck |
|
Other Highly Rated Drug Stocks |
Johnson & Johnson |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 90% of the 5,738 members who have rated Pfizer believe the stock will outperform the S&P 500 going forward. These bulls include All-Star BSHumphreyII, who is ranked in the top 10% of our community, and dumberthanafool.
Just last week, BSHumphreyII tapped the stock as a healthy way to earn some income: "This is a pure Dog of the Dow pick. Pfizer is currently at a 4.1% dividend yield and an 8.1 future P/E. Pfizer isn't going anywhere, and that's an awfully low P/E for the Pharm sector. They'll outperform the S&P no matter which way the index goes."
In a pitch from last month, dumberthanafool elaborates:
The recent dividend cut was to fund an acquisition, not because of huge business problems. The yield is a rockin' 4%, with an OK, not great, payout ratio. Current ratio is great. Debt is OK. The stock is cheap because of the perception that [Pfizer] does not get a good return on its research dollars, and because of looming patent expirations. In light of recent acquisitions, I think these concerns are overblown.
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