Five years ago, the world was in the thick of the COVID-19 global pandemic, bringing Pfizer (PFE 3.48%) into the spotlight because of the role it played in developing the COVID-19 vaccine with its partner BioNTech. It was able to get U.S. Food and Drug Administration (FDA) approval for its COVID-19 vaccine on Dec. 11, 2020, and it was released on Dec. 14, 2020.

Pfizer logo.

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From mid-2020 to late 2021, Pfizer's stock skyrocketed, but since hitting its peak, it has reversed course. Had you invested $1,000 into Pfizer's stock on Aug. 1, 2020, your investment would only be worth around $638 as of Aug. 1, 2025. Pfizer's dividend would've cushioned some of the blow, but an investment then would still be less than your initial investment, at $828.

PFE Chart

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Why has Pfizer's stock struggled the past few years?

Much of Pfizer's stock price troubles since hitting its Dec. 21 peak come down to a decline in demand for its COVID-19 vaccine and treatments, anticipated patent expirations on drugs like Ibrance (breast cancer) and Eliquis (blood clots), and an underwhelming pipeline. All isn't lost with Pfizer's stock, however.

At its current levels -- trading at 7.7 times forward earnings -- Pfizer seems to be flirting with bargain territory. I don't expect a quick turnaround, but this low valuation gives it more long-term upside than downside. It also helps that the stock's dividend yield sits above 7.3%, more than 5.5 times the S&P 500 average.