Please ensure Javascript is enabled for purposes of website accessibility

2 Green Flags for Pfizer in 2021 and 1 Yellow Flag

By Adria Cimino - Mar 6, 2021 at 6:47AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A clue: They have to do with revenue.

Pfizer (PFE 0.56%) recently reported earnings and spoke of what to expect in 2021. In this Motley Fool Live video recorded on Feb. 26, 2021, healthcare and cannabis bureau chief Corinne Cardina and Fool.com contributor Adria Cimino discuss two reasons to be optimistic about Pfizer (PFE 0.56%) this year -- and one point that warrants caution.

Corinne Cardina: We're going to talk a little bit about earnings. The most recent quarter that companies have announced is especially interesting because it's really the first quarter since they've been shipping vaccines. Let's start with Pfizer, which reported earnings in early February. Could you call out maybe two green flags and one red or yellow flag for investors?

Adria Cimino: Sure. Well, my first green flag would have to do with revenue for this coming year. Pfizer predicts, the revenue it's predicting would be about 40% higher than revenue from last year. They're predicting revenue of between $59.4 billion and $61.4 billion. Again, that would be a pretty good gain.

Along with that, I would say revenue for the coronavirus vaccine. They are predicting revenue from the coronavirus vaccine represents $15 billion in sales. Again, a super-huge blockbuster -- that's definitely a green flag.

My second green flag would be the spin-off of the Upjohn business. That's complete, so that is no longer going to be a drag on Pfizer. We can look forward to now just all of their better selling drugs and everything and the coronavirus vaccine, and we don't have to worry about that dragging down the business. That's definitely another green flag.

For my yellow flag, I would just say, keep in mind the competition with the coronavirus vaccines, because right now, the market is being shared with Moderna. But there are a lot of other companies coming up. The idea of Johnson & Johnson and Novavax and even others that could enter the market. That's something that right now, Moderna and Pfizer really are the leaders and maybe even for the rest of this year because of that big order that the U.S. government put in. But further down the road, if some of these others come up with better boosters or the idea of the one-shot vaccine, that could really hurt Pfizer down the road.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Pfizer Inc. Stock Quote
Pfizer Inc.
PFE
$53.71 (0.56%) $0.30
Johnson & Johnson Stock Quote
Johnson & Johnson
JNJ
$179.62 (-0.98%) $-1.78
Novavax, Inc. Stock Quote
Novavax, Inc.
NVAX
$46.13 (-0.88%) $0.41
Moderna, Inc. Stock Quote
Moderna, Inc.
MRNA
$130.85 (-0.92%) $-1.21

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
322%
 
S&P 500 Returns
116%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.