Shares of pharmaceutical giant Pfizer (PFE 3.34%) have been crashing for multiple years. The last time it posted a positive gain was in 2021, when it rose by more than 60%. Back then, business was booming as demand for its COVID products was strong.
Today, however, the company is struggling to generate much growth. Investors are also concerned about what's ahead for the business and whether things will get much better for the company. The end result is not much excitement and bullishness around Pfizer's stock. But that could change in 2026, as there are multiple potential catalysts that could turn its fortunes around.
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Pfizer says it is "rich in catalysts"
Although there may be uncertainty ahead for Pfizer, management remains optimistic about the future, and it has been investing heavily in it. The pharmaceutical company has many potential drugs in development. As of Nov. 4, 2025, the company had 101 trials ongoing. And in a recent email to investors, Pfizer highlighted many potential milestones upcoming in research & development, stating that 2026 is a year "rich in catalysts" as the company expects to initiate over 20 pivotal Phase 3 trials.
For Pfizer, approval or even encouraging results about a key drug could be the spark the business needs to win over growth-oriented investors and convince them that it's on the right track. And with so many late-stage trials ongoing, there's reason to be optimistic that its growth prospects will get an upgrade in the near future. The stock has been trading at a deep discount for a while, and positive news could soon change that.
NYSE: PFE
Key Data Points
A low valuation and a high yield could make Pfizer's stock too attractive to pass up
Investor concerns about the company's future have resulted in Pfizer's stock trading at a considerable discount. It's trading at an estimated 9 times its forward earnings (which are based on analyst estimates). By comparison, the average S&P 500 stock trades at 22 times its estimated future profits.
Plus, if you throw in an incredibly high dividend yield of 6.6%, Pfizer may end up being an enticing stock to buy this year, especially as investors pivot to safe dividend stocks for their portfolios. It may simply be a matter of time before the stock begins to rally and generate interest from investors again. When that happens, it could be off to the races for a stock that's been down for far too long.
Pfizer is an underrated stock these days as investors are overly cautious about the business. But if you're willing to take a chance on the stock and be patient, it could result in some fantastic returns later on.
