Why Pfizer Popped This Morning

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Pfizer (NYSE: PFE  ) gained over 2% this morning after Jefferies upgraded the pharmaceutical giant from hold to buy.

So what: Along with the upgrade, analyst Jeffrey Holford boosted his price target to $38 (from $33), representing about 24% worth of upside to yesterday's close. While momentum traders might be turned off by the stock's sluggish action in recent months, Holford thinks Pfizer is too juicy to pass up given its growth and margin enhancement opportunities.

Now what: Jefferies raised its 2014 earnings-per-share outlook for Pfizer from $2.24 to $2.27 and its 2015 view from $2.33 to $2.37. "Oncology and restructuring are key themes for the Pharma sector," noted Holford. "Pfizer has both with [breast cancer drug] palbociclib looking like it could launch before year end, while management look to give increased visibility on a new organizational structure from Q1'14." When you couple those solid prospects with Pfizer's peer-lagging forward P/E of 13, it's tough to disagree with Jefferies' bullish stance. 

More compelling income opportunities
One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2822535, ~/Articles/ArticleHandler.aspx, 12/20/2014 11:39:13 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement