PFE

Bristol-Myers Squibb Company (NYSE:BMY) looks cheaper than Pfizer Inc. (NYSE:PFE) on earnings, even though its latest revenue growth was stronger. That sounds like an easy valuation story until the profit figures enter the picture. Bristol Myers reported a 40% rise in second-quarter adjusted earnings per share, while Pfizer's adjusted earnings were virtually unchanged. But those headline numbers conceal an accounting comparison that considerably narrows the apparent advantage. At their October 9 closing prices of $59.12 and $28.28, respectively, Bristol Myers trades at about 9.36 times its forward earnings, against 9.67 times for Pfizer, according to the latest available estimates by Yahoo Finance. The difference is modest compared with the uncertainty surrounding how each company will replace weakening product revenue. But before we get into the investment case, we meticulously compiled a list of the best healthcare stocks to buy according to hedge funds. Check out the complete list here to make an informed decision. Bristol Myers has progressed further than its low multiple might suggest. Its second-quarter revenue grew 6% to $13.0 billion, helped by a 15% increase in its Growth Portfolio to $7.6 billion. That portfolio now accounts for roughly 58% of quarterly revenue. Reblozyl increased 29%, Breyanzi 41%, and Camzyos 60%, providing several sources of momentum rather than a single hoped-for breakthrough. Management raised its annual revenue outlook to $49 billion–$50 billion and adjusted EPS guidance to $6.75–$7.00. The increase is particularly relevant to valuation: Bristol Myers has not merely posted encouraging individual drug sales; it has revised its companywide financial expectations upward. We also crafted a list of the 12 Cheap Biotech Stocks to Buy Now through cumbersome research. Access the complete list here. Pfizer Inc. (NYSE:PFE) also has growth that its headline revenue figure obscures. Revenue for fiscal Q2 2026 rose 3% to $15.0 billion, but revenue excluding Comirnaty and Paxlovid increased 5% operationally. Its launched and acquired products grew 18% operationally. The company also reported that Padcev rose 23%, Lorbrena 37%, and Eliquis 19%, all on an operational basis. These product categories differ from BMY's Growth Portfolio and are not directly comparable. Pfizer also raised the midpoint of its annual revenue outlook by $500 million to $61.5 billion. That suggests its non-COVID portfolio is contributing enough to improve expectations, even as its pandemic-related business continues to contract. Read more extensively about Pfizer's bull and bear case through our insightful article on Pfizer Is Trading at Less Than 10 Times Earnings. But Is the Stock Actually Cheap? For more insight into how investment stories for other popular healthcare stocks compare with one another, take a look at our insightful article on Gilead vs. Danaher: Which Healthcare Growth Story is More Convincing? The important qualification for Bristol Myers lies in its spectacular-looking adjusted earnings growth. EPS increased from $1.46 to $2.04, but the earlier quarter included a $0.57-per-share net acquisition-related research and development charge, versus a positive $0.01 impact in the latest quarter. Removing those specific impacts leaves approximately $2.03 per share in both periods. That calculation does not strip out every possible earnings adjustment, but it shows why the reported 40% jump should not be mistaken for comparable underlying acceleration. Its Legacy Portfolio also fell 4% to $5.42 billion. Revlimid declined 49%, and Pomalyst/Imnovid dropped 71%. Even a growing replacement portfolio must contend with substantial lost sales from older medicines. Pfizer's adjusted diluted EPS slipped to $0.77 from $0.78, despite higher reported revenue. Its updated guidance highlights the challenge, showing that an expected $1.5 billion improvement in non-COVID revenue was partly offset by a $1 billion reduction in anticipated COVID-product sales. The company maintained adjusted EPS guidance of $2.80–$3.00. Bristol-Myers Squibb Company (NYSE:BMY) offers the lower guidance-based earnings multiple and faster reported quarterly sales growth. Pfizer Inc. (NYSE:PFE) shows encouraging expansion outside COVID products, but that progress has yet to produce much change in adjusted earnings. The striking point is that neither company's headline EPS result fully captures its operating transition. Putting the two stocks in comparison looks into how much growth remains after aging franchises, weaker product lines and accounting effects are considered, instead of merely declaring the lower multiple a bargain. While we acknowledge the potential of BMY and PFE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Can Eli Lilly Catch Novo Nordisk in the Oral GLP-1 Race? AND Abbott vs. Intuitive Surgical: Is Consistent Growth Better Than Premium Growth? This article is originally published at Insider Monkey.

Gilead Sciences (GILD) built its foundation on HIV treatment. Biktarvy alone accounted for $14.3 billion of the company's $29.4 billion in fiscal 2025 revenue. Yet another segment of the HIV business is growing at a much faster pace, and it targets people who do not currently carry the virus. Gilead expects a regulatory decision regarding a new option in this category in early 2027. So what is that business, and how much is it selling today? Gilead's Prevention Sales Passed $1 Billion In A Quarter That business is HIV prevention, an area known as PrEP. These are medicines taken by people without the virus so they do not catch it. During fiscal Q2 2026, Gilead's PrEP sales crossed $1 billion in a single quarter for the first time, out of the company's $7.6 billion in total product sales. Executives noted on the latest earnings call that these prevention sales doubled from a year earlier. Management credited this strength in prevention to two specific products, Descovy and Yeztugo. Descovy generated about $801 million from prevention during the quarter, representing a 60% increase from a year earlier. Prevention accounts for around 80% of all Descovy sales. The broader U.S. PrEP market grew about 14% from a year earlier on a growing base of users, management said. Early users of Yeztugo, Gilead's twice-yearly prevention injection, are also returning for subsequent doses. Executives reported that more than 70% of users so far have returned for a second injection at six months, extending their protection against HIV to a full year. How Big Is Prevention Next To Gilead's HIV Treatment? Prevention remains significantly smaller than treatment. Descovy, mostly a prevention product, generated $2.76 billion in fiscal 2025. That total represents a fraction of the revenue Biktarvy produced. However, Descovy sales grew 30.5% that year, compared with a 6.8% increase for Biktarvy. For a business of Gilead's size, prevention provides additional growth on top of treatment rather than replacing it. Management has raised its outlook for the entire HIV category. During the latest call, executives forecast fiscal 2026 HIV sales growth of 9% to 10%, up from the 8% projected previously. Gilead is also expanding its global footprint. On September 15, 2026, the company announced an agreement with the Pan American Health Organization to speed access to twice-yearly lenacapavir, the drug in Yeztugo, for prevention across Latin America and the Caribbean. Investors have already bid the shares up. Gilead stock closed on October 15, 2026, at its highest level of the past year. The shares returned 36.1% over that year, compared with 17.9% for the S&P 500. Trading at 6.4 times sales, against 3.1 for the S&P 500, the current stock price appears to assume that some of this growth continues. What Questions Remain About Gilead's Prevention Sales? One question is whether third-party prescription figures align with Gilead's reported sales. During the August 4, 2026 call, Gilead was asked about a widening gap between recent Yeztugo prescription trends tracked by outlets like IQVIA and the sales it reports. Executives said they would comment on their own data, not on how IQVIA captures it. Looking ahead, management expects a regulatory decision by February 2, 2027 on what it calls the first long-acting oral prevention option. Before that decision, Gilead's PrEP sales remain the metric to watch when the company releases its fiscal Q3 2026 report, expected later this month. Does This Mean You Should Act On GILD? Our purpose is to inform you with unique data so you can make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose. There is a smarter approach. Since its inception, the Trefis High Quality (HQ) Portfolio has returned 105%, beating the benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking. If that is how you want to invest, the HQ Portfolio is the place to start.

Last week, drugmaker Pfizer (NYSE: PFE) declared a $0.43 fourth-quarter dividend, its 352nd consecutive quarterly dividend. The forward annual dividend, therefore, is $1.72 per share, which represents a handsome 5.9% yield. Consider that the current average S&P 500 dividend yield is around 1%, and you'll see how attractive Pfizer's yield is. But is Pfizer's dividend safe? It's something every income investor absolutely needs to know, because a company's share price typically declines after a dividend cut, for two primary reasons. One, income investors often sell the stock to seek income elsewhere. And two, investors more broadly view a dividend cut as a flashing red warning signal that a company is facing financial stress and weak cash flow. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » And Pfizer did cut its dividend in half back in 2009 during the great financial crisis, when many companies were forced to slash their payouts. But since 2010, the company has raised its dividend every year. That's impressive. But is it sustainable? Like many other drugmakers, Pfizer is facing some significant patent cliffs. Its blood-thinner drug, Eliquis, and its autoimmune disease drug, Xeljanz, lose U.S. patent exclusivity this year. Ibrance, a breast cancer drug, and Xtandi, a prostate cancer drug, will lose their exclusivity next year. So, Pfizer has to continue to fill its pipeline with potential new drugs. That pipeline leans heavily on new cancer drugs, and it has been expanding that with development programs to treat breast, prostate, bladder, and lung cancers. Fortunately, the company has a robust product portfolio that should keep revenue and cash flow healthy until new drugs are approved and launched. That includes migraine drug Nurtec, which saw 18% growth in the second quarter, and oncology drugs Lorbrena (37% growth) and Padcev (23% growth). Plus, free cash flow, which is needed to pay dividends, has totaled some $11 billion over the past four quarters, more than $1 billion above its dividend payments. Management has reiterated that, as part of its capital allocation strategy, it is committed to maintaining, and over the longer term, growing the dividend. Investors are cautiously optimistic: They've bid the stock up more than 17% year this year, which means it has outperformed the S&P 500 index by more than four percentage points. The stock has climbed about 19% over the past 52 weeks. So, if you want a high-yielding drug stock, Pfizer could be a good choice. But you have to have confidence that it can replace patent-cliff drugs with new pipeline drugs to keep cash flow healthy enough to pay its juicy dividend. Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $391,581!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,334,780!* Now, it's worth noting Stock Advisor's total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 16, 2026. Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy. Pfizer Just Declared Its 352nd Straight Quarterly Dividend. Is the 6% Yield Safe? was originally published by The Motley Fool

Pfizer Inc. (PFE), headquartered in New York, discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products. With a market cap of $167.8 billion, the company offers medicines, vaccines, medical devices, and consumer healthcare products for oncology, inflammation, cardiovascular, and other therapeutic areas. The pharmaceutical giant is expected to announce its fiscal third-quarter earnings for 2026 before the market opens on Tuesday, Nov. 3. Ahead of the event, analysts expect Pfizer to report a profit of $0.72 per share on a diluted basis, down 17.2% from $0.87 per share in the year-ago quarter. The company has consistently surpassed Wall Street's EPS estimates in its last four quarterly reports. - Bill Gates Says Despite Elon Musk Being Mean to Him, He's Still 'In Awe' of His Work — 'He's Brilliant, He's Rich, He's Influential' - 'I Can Support My Family By Working Three Days A Week': Jeff Bezos Says Al Gains Will Be So Big Families Won't Need 2 Full-Time Earners - At 97, Charlie Munger Borrowed $37 Million to Go All-In on Alibaba — 2 Years Later He Called It One of the 'Worst Mistakes' of His Life - Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For the full year, analysts expect Pfizer to report EPS of $2.95, down 8.4% from $3.22 in fiscal 2025. Meanwhile, its EPS is expected to remain unchanged year over year at $2.95 in fiscal 2027. PFE stock has outperformed the S&P 500 Index's ($SPX) 16.1% gains over the past 52 weeks, with shares up 21.7% during this period. However, it underperformed the State Street Health Care Select Sector SPDR ETF's (XLV) 24.6% returns over the same time frame. Pfizer's mixed performance reflects investor caution over declining COVID-19 product sales, aging blockbusters, and looming patent expirations. However, the company's core business remains resilient, bolstered by strong non-COVID portfolio execution, successful integration of acquisitions like Seagen and Biohaven, and growing demand for key brands such as Eliquis and Padcev. Looking ahead, Pfizer is prioritizing long-term growth through robust R&D pipelines in oncology and obesity, highlighted by the advancement of berobenatide, alongside aggressive cost-cutting and manufacturing efficiencies targeting $9.7 billion in net savings by 2029. Analysts' consensus opinion on PFE stock is moderately bullish, with a "Moderate Buy" rating overall. Out of 28 analysts covering the stock, eight advise a "Strong Buy" rating, one suggests a "Moderate Buy," 17 give a "Hold," and two recommend a "Strong Sell." While PFE currently trades above its mean price target of $29.45, the Street-high price target of $36 suggests an upside potential of 21.6%. On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

This story was originally published on BioPharma Dive. To receive daily news and insights, subscribe to our free daily BioPharma Dive newsletter. Today, a brief rundown of news involving Johnson & Johnson and Gilead Sciences, as well as updates from the Federal Trade Commission, Syndax Pharmaceuticals and Pfizer that you may have missed. Johnson & Johnson shares fell 6% Tuesday despite delivering third-quarter results that met Wall Street expectations and hiking its 2026 financial guidance. Investors' chief concern with J&J appears to be "underwhelming" performance from its medical device business, though the company also has a dearth of important "upside catalysts," wrote RBC Capital Markets analyst Trung Huynh in a client note. It's unclear, Huynh noted, when one of J&J's most anticipated readouts — a trial involving the next-generation blood thinner milvexian — might come. Still, his team believes the share sell-off is "excessive," emblematic of broader market volatility, and sets a "negative tone" for the sector as earnings season begins. Gilead Sciences is collaborating with Vir Biotechnology in a deal to develop T cell engagers for cancer. Vir is one of a few companies working on T cell engagers specially designed to evade immune system detection until reaching a tumor. Through Wednesday's deal, Vir and Gilead will direct three of these "dual-masked" therapies against unspecified solid tumor targets. Vir will receive $135 million in upfront and near-term payouts, and could gain up to $1.74 billion more if drugs in the agreement hit a variety of milestones. The alliance is the second recent pact for Vir following a deal with Astellas Pharma. The Federal Trade Commission and seven states have asked a New York judge to rule that Martin Shkreli has "flagrantly and repeatedly" flouted a court order banning him from the pharmaceutical industry. In a motion filed Tuesday, the FTC and its co-plaintiffs alleged that, since his May 2022 release from prison, Shkreli has consistently violated the lifetime ban by trading in more than 60 industry stocks and "broadcasting his opinions" about many pharmaceutical companies on various social media channels. They've called for Shkreli to be held in civil contempt and to divest ownership of any drug stocks. "Very surprising from [President Donald] Trump's FTC," Shkreli commented in a response on X. Shkreli drew broad criticism a decade ago, when his then-company bought a medicine called Daraprim and dramatically increased its price. He was later convicted of securities fraud and sentenced to seven years in prison.  A drug Syndax Pharmaceuticals sells for graft-versus-host disease failed a mid-stage trial in idiopathic pulmonary fibrosis. Syndax said the therapy, known scientifically as axatilimab and sold as Niktimvo, didn't meaningfully improve a measure of breathing capacity when compared to a placebo. It'll stop developing Niktimvo in that indication, though the company stressed that the findings don't affect other ongoing studies. The study was a "high-risk, high-reward" bet in a "historically difficult disease," wrote TD Cowen analyst Phil Nadeau. Nadeau also noted that partner Incyte hadn't opted into co-developing Niktimvo in IPF, one of multiple reasons his team's valuation of Syndax didn't change following the study setback. Pfizer will work with biotech startup Enodia Therapeutics on drugs that target a particular kind of protein gateway. Under the collaboration, the companies will develop small molecules that block "Sec61," an opening newly made proteins pass through before they're shepherded to their final destination. Enodia claims this approach enables it to target disease-causing proteins before they might cause harm. The startup could receive more than $500 million from Pfizer in the deal, though it didn't specify how much of that cash is guaranteed.

Merck's MRK revenues are primarily derived from the oncology portfolio, led by its blockbuster PD-L1 inhibitor, Keytruda. The drug accounts for more than 55% of the company's pharmaceutical sales. Keytruda generated $16.40 billion in sales in the first six months of 2026, increasing 4.2% year over year. Keytruda Qlex, the subcutaneous formulation of Keytruda, contributed $590 million during this period. Keytruda Qlex can offer substantially quicker administration time than the intravenous infusion of Keytruda. Building on this growing momentum, we expect investors to keep a close eye on Keytruda's sales performance when Merck reports its third-quarter 2026 results on Oct. 29. Keytruda sales are likely to have gained from continued strong momentum in metastatic indications and rapid uptake across earlier-stage launches during the third quarter. Recent label expansions, including Keytruda's use in combination with Pfizer's Padcev in muscle-invasive bladder cancer, have broadened its patient base and should also support sales growth. The Zacks Consensus Estimate for Keytruda's third-quarter sales stands at $7.45 billion. Importantly, the company expects Keytruda's strong growth to continue until the drug loses patent exclusivity in 2028. Management expects the drug to achieve peak sales of $35 billion by 2028 before it loses exclusivity. However, Keytruda is expected to face significant biosimilar competition around 2028-2029. Once biosimilars enter, Keytruda's sales are likely to decline sharply. Keytruda faces competition from other PD-L1 inhibitors, including Bristol Myers' BMY Opdivo, Roche's RHHBY Tecentriq and AstraZeneca's AZN Imfinzi. BMY's Opdivo, like Keytruda, is approved across multiple cancer types, including lung, melanoma and kidney cancers. Bristol Myers recorded $4.63 billion in Opdivo sales in the first half of 2026, down 3.9% year over year. Tecentriq is Roche's leading immuno-oncology drug approved for multiple cancer indications. RHHBY recorded CHF 1.70 billion in Tecentriq sales in the first half of 2026, up 6% year over year. AZN's Imfinzi generated sales of $3.55 billion in the first half of 2026, up 29%, driven by strong demand growth across all regions from established indications and new launches. Imfinzi has strategically expanded its use across multiple cancer indications, strengthening AstraZeneca's oncology portfolio. Year to date, shares of Merck have rallied 37.7% compared with the industry's 15.1% rise. The stock has also outperformed the sector and the S&P 500 during the same time frame, as seen in the chart below. Image Source: Zacks Investment Research From a valuation standpoint, Merck appears to be trading at a discount compared to the industry. Going by the price/earnings ratio, MRK's shares currently trade at 17.94 forward earnings, lower than 18.33 for the industry. The stock is trading above its 5-year mean of 13.04. Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2026 earnings per share has declined from $2.78 to $2.66, while the same for 2027 has declined from $9.67 to $9.27 over the past 60 days. Image Source: Zacks Investment Research Merck currently has a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Merck & Co., Inc. (MRK) : Free Stock Analysis Report AstraZeneca PLC (AZN) : Free Stock Analysis Report Roche Holding AG (RHHBY) : Free Stock Analysis Report Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Pfizer Inc. (NYSE:PFE) closed at $28.40 on October 12. The stock has returned almost 4% during the last six months, compared to a 21.25% return for the Insider Monkey Billionaire Index and 14% for State Street SPDR S&P 500 ETF Trust. Pfizer pays a 6% annual dividend yield that most income funds cannot ignore, and carries a reputation most of them would rather avoid. Whether that combination is generous or a warning is the only question worth asking here. Pfizer Inc. (NYSE:PFE) ranked 6th on our list of the 14 Best Pharma Dividend Stocks to Buy in 2026. To see which stocks outranked it, click HERE. Trailing earnings are $0.77 a share against a forward estimate of $2.90, and almost everything odd about Pfizer's screen follows from that single gap. A dividend costing more than double reported earnings is where the 226.32% payout comes from. That same $0.77 divided into a share price near twenty-eight dollars is where the 36.73 multiple comes from. Neither figure would look unusual against the forward estimate. The cash tells a steadier story than the earnings. Free cash flow arrived at more than double reported net income, which is what makes a payout above two hundred percent of earnings actually payable. The medicines themselves still earn well. Gross margin sits near three-quarters of revenue, and the operating margin is comfortably in the twenties, which is a normal shape for large pharmaceuticals rather than the profile of a broken business. Revenue also grew in the most recent quarter, so the top line is not what collapsed. That combination is what separates the real payers on the pharma dividends we rated highest this year from the ones that only look generous, and the drugmaker we put first there has returned 13% since. A dividend is only as safe as the cash behind it, never the earnings in front of it. Pfizer passes that test on cash and fails it on reported profit, which is the whole of the argument above. DON'T MISS: 14 Best Blue Chip Dividend Stocks to Buy According to Hedge Funds Net margin of 6.80% against an operating margin in the high twenties is where the problem sits, and interest on $63.48 billion of debt lives inside that gap. That debt was largely raised to buy growth through acquisition, the same strategy its peers are running, because Pfizer has to replace revenue coming off patent. The forward multiple of 9.76 only applies if earnings per share really does reach $2.90 from $0.77, which is a very large recovery to assume and depends entirely on the acquired pipeline performing. A yield above 6% is the market's own verdict on that. Income investors do not get paid six percent by a large pharmaceutical company unless the market has doubts about the payout or the earnings behind it. The balance sheet is stretched rather than strained, with cash on hand and a current ratio above one, so this is a question of growth rather than solvency. Six percent is either a bargain or a warning, and an income buyer has to pick one, which is why many of them stay with the blue chip payers with the heaviest hedge fund ownership instead. The most crowded name there is up 23% since. The verdict is that Pfizer looks cheap on forward estimates and fairly valued on what it is actually earning today. Enterprise value against EBITDA of 15.72 is the least distorted measure available, and on that basis the shares are genuinely inexpensive relative to the sector. You are buying a recovery that has not happened yet, paid for while you wait by a dividend covered by cash. Trading below twice book value gives some floor, more than most of the sector offers. What it does not give is the multi-decade record behind the dividend aristocrats with unbroken raise records. The two alarming figures are one weak trailing year counted twice. Free cash flow came in at more than double reported net income, and revenue is still growing. However, net margin carries the interest on an enormous debt load, and the forward multiple only holds if earnings per share recovers as sharply as analysts expect. A yield this high is what the market pays when it doubts that. Net margin is what the debt leaves behind, and it is the line to follow from here. Pfizer Inc. (NYSE:PFE) was held by 83 hedge funds with a combined stake value of about $4.71 billion at the end of Q2 2026 in the Insider Monkey database. This is level with 83 hedge fund holders with a cumulative investment value of around $6.15 billion in the previous quarter. While we acknowledge the risk and potential of PFE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PFE and that has 10,000% upside potential, check out our report about this cheapest AI stock. READ NEXT: 14 Best Blue Chip Dividend Stocks to Buy According to Hedge Funds and 14 Best Pharma Dividend Stocks to Buy in 2026 This article is originally published at Insider Monkey.

Dosed first patient in registrational Phase 3 DAYBreak CLL-306 trial comparing bexobrutideg with pirtobrutinib in relapsed/refractory CLL/SLL Advanced bexobrutideg combination strategy with initiation of recruiting for the Phase 1b/2 NX-5948-203 study Earned $27M from Gilead, Pfizer and Sanofi collaborations, including a $10M milestone from Sanofi for first patient dosed in the STAT6 degrader Phase 1 trial Advanced NX-1607 into Phase 1b expansion cohorts in MSS CRC, NSCLC, CRPC and melanoma with the first patient dosed in September 2026 Following receipt of the $700 million upfront as part of the close of the Roche collaboration, Nurix has $1.1 billion in cash, cash equivalents and marketable securities, and runway into the second half of 2029 BRISBANE, Calif., Oct. 12, 2026 (GLOBE NEWSWIRE) -- Nurix Therapeutics, Inc. (Nasdaq: NRIX), a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of targeted protein degradation medicines, today reported financial results for the fiscal quarter ended August 31, 2026, and highlighted significant corporate updates on partnered clinical programs and its wholly owned oncology portfolio. "The third quarter marked an important transition for Nurix as we moved bexobrutideg into Phase 3 development in CLL and began executing a broader clinical strategy designed to realize its potential across lines of therapy in both oncology and auto-immune disease," said Arthur T. Sands, M.D., Ph.D., president and chief executive officer of Nurix. "At the same time, Sanofi advanced our oral STAT6 degrader into the clinic, and we advanced our CBL-B inhibitor NX-1607 into Phase 1b expansion cohorts across four solid tumor indications." Program Highlights* Oncology Pipeline Bexobrutideg Global Collaboration with Roche During the quarter, Nurix and Roche entered into the global collaboration to co-develop and co-commercialize bexobrutideg across malignant hematology, immunology and neurology, cleared the Hart-Scott-Rodino requirement, and began executing with the initiation of the Phase 3 DAYBreak CLL-306 study. The collaboration is designed to support Nurix's comprehensive clinical development strategy spanning multiple hematologic malignancies and expansion into immune-mediated diseases, including chronic spontaneous urticaria (CSU) and multiple sclerosis (MS). Under the agreement, development costs are shared 40% by Nurix and 60% by Roche; profits and losses in the United States will be shared equally; and Nurix is eligible to receive tiered royalties on ex-U.S. sales. Bexobrutideg Registrational Development in CLL/SLL - Enrolled the first patient in DAYBreak CLL-306 (NCT07516093), the first Phase 3 trial of bexobrutideg. The global, randomized registrational study is designed to evaluate the potential superiority of bexobrutideg versus pirtobrutinib in approximately 620 patients with relapsed/refractory CLL/SLL whose disease has progressed following prior covalent BTK inhibitor therapy. - Patients in DAYBreak CLL-306 are randomized 1:1 to receive bexobrutideg 600 mg orally once daily or pirtobrutinib. The dual primary endpoints are objective response rate and progression-free survival, each assessed by an independent review committee. The study is designed to support global regulatory submissions. - Continued enrollment in DAYBreak CLL-201 (NCT07221500), the pivotal single-arm Phase 2 trial designed to support a potential Accelerated Approval submission in patients with relapsed/refractory CLL whose disease has progressed following treatment with a covalent BTK inhibitor, a BCL2 inhibitor and a non-covalent BTK inhibitor. Bexobrutideg Combination Development - Initiated recruiting for the Phase 1b/2 NX-5948-203 study (NCT07520006), which will evaluate bexobrutideg in combination with standard-of-care therapies in patients with CLL/SLL. - The initial cohort is designed to evaluate bexobrutideg in combination with venetoclax. Bexobrutideg Clinical Data Presented at EHA 2026 - Presented updated Phase 1a results from the NX-5948-301 study in heavily pretreated relapsed/refractory CLL/SLL demonstrating a median progression-free survival of 22.1 months and an objective response rate of 83.0%. Responses were observed across patients with BTK inhibitor resistance mutations, high-risk molecular features and central nervous system involvement. - Presented new Phase 1b data supporting activity in earlier lines of therapy achieving an objective response rate of 92.9% in patients previously treated with a BTK inhibitor but naïve to BCL2 inhibitor therapy, with 18 of 19 patients remaining on treatment at the data cutoff. Among evaluable BTK inhibitor-naïve patients including treatment-naïve patients, the objective response rate was 84.2%, with 19 of 20 patients remaining on treatment at the data cutoff. - Across 142 Phase 1a/1b CLL patients, bexobrutideg was well tolerated, consistent with prior disclosures. No dose-limiting toxicities or treatment-related Grade 5 adverse events were reported, and treatment discontinuations due to adverse events occurred in 5.6% of patients as of the January 1, 2026 data cutoff. Oncology Portfolio - Nurix advanced NX-1607, an oral CBL-B inhibitor, into Phase 1b monotherapy expansion cohorts and a Phase 1a combination cohort with pembrolizumab. Nurix enrolled its first patient in both the Phase 1b monotherapy expansion and Phase 1a combination cohorts in September 2026. The expansion cohorts will evaluate NX-1607 in patients with microsatellite stable colorectal cancer (MSS CRC), non-small cell lung cancer (NSCLC), metastatic castration-resistant prostate cancer (CRPC) and metastatic melanoma. Each tumor-specific cohort is planned to enroll approximately 30 patients. - Nurix announced the achievement of a $7 million milestone under the strategic collaboration with Pfizer. - Nurix and Gilead agreed to extend the research term for one oncology program by an additional two years. Nurix will receive a one-time fee of $10.0 million in connection with the extension. - Nurix made the decision to discontinue further clinical development of NX-2127 (zelebrudomide) as part of a strategic prioritization of its wholly owned oncology portfolio. Patients currently receiving NX-2127 may continue treatment for as long as clinically appropriate. Nurix will conduct essential safety monitoring while patients remain on treatment, and each treating institution will provide follow-up under its standard of care. Immunology and Inflammation Pipeline Expansion of Bexobrutideg into Immunology and Neurology - Completed evaluation of bexobrutideg in a single-ascending-dose and multiple-ascending-dose study in healthy volunteers (NCT06717269) to support future development in immunology and neurology indications. Immunology and Inflammation Collaboration Programs - Sanofi initiated a Phase 1 first-in-human clinical trial of SAR448272/NX-3911, an oral STAT6 degrader being developed for type 2 inflammatory diseases, triggering a $10 million development milestone payment to Nurix. Following the milestone, Nurix has earned approximately $139 million under its collaboration with Sanofi and remains eligible to receive approximately $455 million in future development, regulatory and commercial milestone payments associated with the STAT6 program, in addition to potential royalties on future product sales. Nurix also retains an option to co-develop, co-promote and share profits and losses for the program equally in the United States following demonstration of clinical proof of concept. - Gilead continues to advance the IRAK4 degrader GS-6791 in an ongoing first-in-human Phase 1 study in healthy volunteers. Nurix retains the right to opt in after Phase 1 to a 50/50 U.S. profit share and co-development arrangement, subject to certain restrictions. *Expected timing of events throughout this press release is based on calendar year quarters. Fiscal Third Quarter 2026 Financial Results Revenue for the three months ended August 31, 2026, was $673.1 million compared with $7.9 million for the three months ended August 31, 2025. The increase was primarily due to $653.2 million of license revenue from the collaboration with Roche and $10.0 million from the achievement of a development milestone from the collaboration with Sanofi. Research and development expenses for the three months ended August 31, 2026, were $79.3 million compared with $86.1 million for the three months ended August 31, 2025. The decrease was primarily due to the cost sharing offset related to the collaboration with Roche. General and administrative expenses for the three months ended August 31, 2026, were $34.4 million compared with $13.2 million for the three months ended August 31, 2025. The increase was primarily due to one-time expenses associated with the Roche transaction for consulting costs and business development activities. Net income for the three months ended August 31, 2026, was $549.8 million, or $4.73 per diluted share, compared with net loss of $86.4 million, or ($1.03) per basic and diluted share, for the three months ended August 31, 2025. Cash, cash equivalents and marketable securities were $1.1 billion as of August 31, 2026, compared with $592.9 million as of November 30, 2025. About Bexobrutideg (NX-5948) Bexobrutideg (NX-5948) is an investigational, orally bioavailable, brain-penetrant, highly selective small-molecule degrader of Bruton's tyrosine kinase (BTK) being developed by Nurix and Roche across malignant hematology, immunology and neurology. Bexobrutideg is currently being evaluated in a broad clinical development program in patients with CLL, including DAYBreak CLL-201 (NCT07221500), a pivotal single-arm Phase 2 study in relapsed/refractory CLL; DAYBreak CLL-306 (NCT07516093), a randomized Phase 3 trial comparing bexobrutideg with pirtobrutinib in relapsed/refractory CLL/SLL; NX-5948-203 (NCT07520006), a Phase 1b/2 study evaluating bexobrutideg in combination with venetoclax with or without an anti-CD20 antibody in relapsed/refractory and treatment-naïve CLL; and NX-5948-301 (NCT05131022), a Phase 1a/1b study in relapsed/refractory B-cell malignancies. Additional information about these clinical trials can be found at clinicaltrials.gov. About Nurix Therapeutics, Inc. Nurix Therapeutics is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of targeted protein degradation medicines, a new frontier in drug discovery aimed at improving treatment options for patients with cancer and autoimmune diseases. Nurix's clinical-stage oncology pipeline includes bexobrutideg, a degrader of BTK being co-developed with Roche, and NX-1607, an inhibitor of Casitas B-lineage lymphoma proto-oncogene B (CBL-B), an E3 ligase that regulates activation of multiple immune cell types including T cells and NK cells. Nurix's autoimmune disease pipeline includes bexobrutideg in collaboration with Roche and clinical-stage degraders of IRAK4 in collaboration with Gilead and STAT6 in collaboration with Sanofi. Nurix is also advancing multiple potentially first-in-class or best-in-class degraders and degrader antibody conjugates in its wholly owned preclinical pipeline and under collaboration agreements with Gilead Sciences, Inc., Sanofi S.A. and Pfizer Inc., within which Nurix retains certain options for co-development, co-commercialization and profit sharing in the United States for multiple drug candidates. Powered by an AI-integrated discovery engine capable of tackling virtually any protein class, and coupled with unparalleled ligase expertise, Nurix's dedicated team has built a formidable advantage in translating the science of targeted protein degradation into clinical advancements. Nurix aims to establish degrader-based treatments at the forefront of patient care, writing medicine's next chapter with a new script to outmatch disease. Nurix is headquartered in Brisbane, California. For additional information, visit www.nurixtx.com. Forward-Looking Statements This press release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When or if used in this press release, the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "outlook," "plan," "predict," "should," "will," and similar expressions and their variants, as they relate to Nurix, may identify forward-looking statements. All statements that reflect Nurix's expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements regarding: Nurix's future financial or business performance; Nurix's future plans, prospects and strategies; Nurix's plans and expectations with respect to its current and prospective drug candidates; Nurix's plans and expectations with respect to the clinical trials for its drug candidates; the tolerability, safety profile, therapeutic potential and other advantages of Nurix's drug candidates; the planned timing and conduct of Nurix's clinical trials; the planned timing for the provision of updates and findings from Nurix's preclinical studies and clinical trials; and the potential benefits of and Nurix's expectations with respect to its strategic collaborations. Forward-looking statements reflect Nurix's current beliefs, expectations and assumptions. Although Nurix believes the expectations and assumptions reflected in such forward-looking statements are reasonable, Nurix can give no assurance that they will prove to be correct. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and changes in circumstances that are difficult to predict, which could cause Nurix's actual activities and results to differ materially from those expressed in any forward-looking statement. Such risks and uncertainties include, but are not limited to: (i) whether Nurix and its collaborators will be able to advance drug candidates, obtain regulatory approval and ultimately commercialize drug candidates; (ii) uncertainties related to the timing and results of preclinical studies and clinical trials; (iii) the unexpected emergence of adverse events or other undesirable side effects during clinical development; (iv) whether Nurix will be able to fund development activities and achieve development goals, including its obligations under the Nurix-Roche collaboration; (v) uncertainties related to the timing and receipt of payments from Nurix's collaboration partners, including milestone payments and royalties on future product sales; (vi) whether Nurix and Roche will be able to successfully co-commercialize bexobrutideg in the United States; (vii) whether Nurix will be able to protect its intellectual property; and (viii) other risks and uncertainties described under the heading "Risk Factors" in Nurix's Quarterly Report on Form 10-Q for the fiscal quarter ended August 31, 2026, and other SEC filings. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements. The statements in this press release speak only as of the date of this press release, even if subsequently made available by Nurix on its website or otherwise. Nurix disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law. Contacts: Investors & Media Kris Fortner Nurix Therapeutics, Inc. [email protected] --MORE-- Nurix Therapeutics, Inc. Condensed Statements of Operations (in thousands, except share and per share amounts) (unaudited) | | | | Three Months Ended August 31, | | Nine Months Ended August 31, | 2026 | | 2025 | | 2026 | | 2025 Revenue: | | | | | | | | | Collaboration revenue | $ | 19,908 | | | $ | 7,894 | | | $ | 35,203 | | | $ | 40,403 | License revenue | | 653,156 | | | | - | | | | 653,156 | | | | 30,000 | Total revenue | | 673,064 | | | | 7,894 | | | | 688,359 | | | | 70,403 | Operating expenses: | | | | | | | | | Research and development | | 79,260 | | | | 86,120 | | | | 251,049 | | | | 233,879 | General and administrative | | 34,353 | | | | 13,159 | | | | 64,558 | | | | 39,095 | Total operating expenses | | 113,613 | | | | 99,279 | | | | 315,607 | | | | 272,974 | Income (loss) from operations | | 559,451 | | | | (91,385 | ) | | | 372,752 | | | | (202,571 | ) Interest and other income, net | | 3,962 | | | | 4,964 | | | | 13,681 | | | | 17,095 | Income (loss) before income taxes | | 563,413 | | | | (86,421 | ) | | | 386,433 | | | | (185,476 | ) Provision for income taxes | | 13,606 | | | | - | | | | 13,335 | | | | 760 | Net income (loss) | $ | 549,807 | | | $ | (86,421 | ) | | $ | 373,098 | | | $ | (186,236 | ) Net income (loss) per share, basic | $ | 4.93 | | | $ | (1.03 | ) | | $ | 3.36 | | | $ | (2.22 | ) Weighted-average number of shares outstanding, basic | | 111,563,067 | | | | 84,159,336 | | | | 110,912,478 | | | | 83,869,469 | Net income (loss) per share, diluted | $ | 4.73 | | | $ | (1.03 | ) | | $ | 3.26 | | | $ | (2.22 | ) Weighted-average number of shares outstanding, diluted | | 116,152,771 | | | | 84,159,336 | | | | 114,367,848 | | | | 83,869,469 | | | | | | | | | | Nurix Therapeutics, Inc. Condensed Balance Sheets (in thousands) (unaudited) | | | | August 31, | | November 30, | 2026 | | 2025 Assets | | | Current assets: | | | Cash and cash equivalents | $ | 720,242 | | | $ | 246,960 | Marketable securities, current | | 328,013 | | | | 345,981 | Accounts receivable | | 20,000 | | | | - | Prepaid expenses and other current assets | | 35,437 | | | | 13,878 | Total current assets | | 1,103,692 | | | | 606,819 | Marketable securities, non-current | | 14,832 | | | | - | Operating lease right-of-use assets | | 48,631 | | | | 50,517 | Property and equipment, net | | 19,407 | | | | 22,490 | Restricted cash | | 782 | | | | 968 | Other assets | | 7,954 | | | | 7,341 | Total assets | $ | 1,195,298 | | | $ | 688,135 | Liabilities and stockholders' equity | | | Current liabilities: | | | Accounts payable | $ | 32,984 | | | $ | 11,215 | Accrued expenses and other current liabilities | | 63,674 | | | | 54,852 | Operating lease liabilities, current | | 3,241 | | | | 2,824 | Deferred revenue, current | | 8,610 | | | | 17,580 | Deferred collaboration funding, current | | 22,233 | | | | - | Total current liabilities | | 130,742 | | | | 86,471 | Operating lease liabilities, net of current portion | | 62,091 | | | | 52,906 | Deferred revenue, net of current portion | | 10,778 | | | | 10,011 | Deferred collaboration funding, net of current portion | | 23,376 | | | | - | Total liabilities | | 226,987 | | | | 149,388 | Stockholders' equity: | | | Common stock | | 109 | | | | 102 | Additional paid-in-capital | | 1,598,540 | | | | 1,541,766 | Accumulated other comprehensive income (loss) | | (210 | ) | | | 105 | Accumulated deficit | | (630,128 | ) | | | (1,003,226 | ) Total stockholders' equity | | 968,311 | | | | 538,747 | Total liabilities and stockholders' equity | $ | 1,195,298 | | | $ | 688,135 | | | |

Pfizer Inc. (NYSE:PFE) has barely rewarded shareholders over the past year. That underperformance has left Pfizer looking inexpensive. Based on the midpoint of the company's 2026 adjusted diluted EPS guidance range of $2.80 to $3.00, the stock trades at roughly 9.6 times forward adjusted earnings, according to our calculations. There are nine healthcare stocks that rank higher than Pfizer in our ranking of the 10 best healthcare stocks to buy according to hedge funds. Check out the complete list here. But a low multiple does not automatically mean a stock is undervalued. Pfizer's 2026 EPS midpoint is below the $3.075 midpoint of its 2025 guidance, meaning earnings are still expected to decline. The real question is whether the market is looking too far into Pfizer's current earnings pressure, or correctly anticipating a prolonged period of weak growth. Also read:Abbott Laboratories is More than a Dividend Stock. Here's Why. Pfizer's 2026 outlook makes clear why investors have been reluctant to pay a higher multiple. The company expects revenue of $59.5 billion to $62.5 billion, compared with approximately $62 billion in 2025 guidance. COVID-19 products are expected to generate about $5 billion in 2026, down from approximately $6.5 billion in 2025, while products facing loss of exclusivity are expected to create another $1.5 billion revenue headwind. That makes Pfizer's headline earnings growth look weak. Yet an important distinction is buried in the guidance and becomes clear when you exclude COVID products and products facing loss of exclusivity. Pfizer Inc. (NYSE:PFE) expects approximately 4% operational revenue growth at the midpoint. That suggests the low valuation is partly a reflection of a business undergoing a transition rather than one simply losing its ability to grow. You can also read about Gilead's HIV Concentration or Pfizer's Patent Cliff: Which Risk is Easier to Own? in our recently published article. Pfizer Inc. (NYSE:PFE) has been trying to build the businesses that can eventually replace declining products, and some of those investments are beginning to look more substantial. The company's obesity program is particularly important. In June, Pfizer reported Phase 2b data for berobenatide, its investigational monthly GLP-1 receptor agonist, showing almost 16% non-placebo-adjusted weight loss at 32 weeks at the 2.4 mg weekly dose. Pfizer plans to advance 10 Phase 3 studies in 2026 as part of a broader program involving more than 20 obesity trials. The oncology pipeline provides another potential source of future growth. Pfizer highlighted next-generation programs including a PD-1/VEGF bispecific antibody, an antibody-drug conjugate and a next-generation CDK4 inhibitor at ASCO 2026. There is also a more immediate positive development in VYNDAMAX. Pfizer reached settlements with generic manufacturers that extend its effective U.S. patent expiry date to June 1, 2031, compared with the company's previous expectation of a significant U.S. revenue decline beginning in 2029. Pfizer now expects VYNDAMAX revenue to remain relatively stable from 2028 through mid-2031, subject to other litigation. This is where Pfizer becomes more interesting than a simple "cheap stock" story. At roughly 9.6 times forward adjusted earnings, the market is clearly assigning a low valuation to Pfizer. But that discount is understandable when 2026 adjusted EPS is expected to decline, and major products face COVID normalization and loss-of-exclusivity pressure. The valuation becomes more compelling if Pfizer can convert its pipeline investments into sustainable growth. The obesity program could provide a new growth engine, oncology offers several potential catalysts, and the VYNDAMAX patent settlements have reduced one source of future revenue uncertainty. On the other hand, much of that upside remains dependent on successful clinical development and commercialization. Pfizer expects 2026 adjusted R&D spending of $10.5 billion to $11.5 billion, showing how much capital it still commits to rebuilding the pipeline. Pfizer Inc. (NYSE:PFE) does not look expensive. At less than 10 times expected 2026 adjusted earnings, the stock trades at a valuation that reflects some skepticism about its growth prospects. The more important question is whether that skepticism has gone too far. The answer depends on what happens after the current earnings decline. If Pfizer's underlying business can grow while its obesity and oncology investments create new commercial opportunities, today's low multiple could be a discount. If those investments fail to offset COVID-related declines and loss-of-exclusivity pressure, the low valuation may simply reflect the company's weaker earnings outlook. The company therefore looks less like a straightforward bargain and more like a valuation bet, where investors are paying little for today's earnings, but they need Pfizer's pipeline to turn that cheap valuation into genuine long-term value. While we acknowledge the risk and potential of PFE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PFE and that has 10,000% upside potential, check out our report about this cheapest AI stock. READ NEXT: Can Eli Lilly Catch Novo Nordisk in the Oral GLP-1 Race? AND Abbott vs. Intuitive Surgical: Is Consistent Growth Better Than Premium Growth? This article is originally published at Insider Monkey.

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Pfizer (PFE), which belongs to the Zacks Large Cap Pharmaceuticals industry. When looking at the last two reports, this drugmaker has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 9.43%, on average, in the last two quarters. For the last reported quarter, Pfizer came out with earnings of $0.77 per share versus the Zacks Consensus Estimate of $0.68 per share, representing a surprise of 13.24%. For the previous quarter, the company was expected to post earnings of $0.71 per share and it actually produced earnings of $0.75 per share, delivering a surprise of 5.63%. For Pfizer, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Pfizer currently has an Earnings ESP of +12.30%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on November 3, 2026. When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pfizer Inc. (PFE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Pfizer (NYSE: PFE) is offering a dividend yield of roughly 6% today. That is well above the roughly 1% yield on offer from the S&P 500 index (SNPINDEX: ^GSPC) and the 1.4% average yield of pharmaceutical stocks. There are good reasons for the negative view of Pfizer, but investors may be ignoring the company's over 100-year history of success. Here's why you may want to consider buying this out-of-favor dividend stock while others are fearful. Pfizer's stock rocketed higher during the coronavirus pandemic, as investors myopically focused on the company's COVID vaccine. When COVID turned out to be a less serious long-term threat than originally believed, Wall Street dumped Pfizer. At this point, the stock is down more than 50% from its 2021 high. That is a big part of the story behind the high yield. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » However, there's another piece that is more fundamental to the pharmaceutical industry. Like all drug makers, Pfizer's drugs receive time-limited patent protections. When patents expire, generic versions of the medications can be produced. That generally leads to a dramatic decline in revenue from Pfizer's drugs. Right now, Pfizer is facing down some notable patent expirations. This is a completely normal dynamic in the pharmaceutical sector. Patent expirations are why drug companies are always on the lookout for new drugs. The problem is that patent expirations follow a set schedule, but drug development does not. Pfizer's drug pipeline isn't producing major new drugs right now, and it looks like it may have to work through a period in which new drugs won't fully offset revenue lost to patent expirations. This isn't uncommon, either, but investors are likely focusing on the short term rather than the long term when it comes to Pfizer. A key driver of Wall Street's negativity is probably the GLP-1 weight-loss opportunity. Pfizer isn't even in the race yet, after one of its own drugs flamed out. No wonder the company's price-to-forward-earnings ratio is below 10x, while Eli Lilly (NYSE: LLY), the leader in the GLP-1 space, has a price-to-forward P/E of 24x. To Pfizer's credit, however, it moved quickly to address its GLP-1 shortfall, buying a company with an attractive weight-loss drug still in development. It is also advancing a number of other drugs, notably in the cancer space, which is an extremely large treatment area. History suggests the company is dealing with a timing issue, not a fundamental shortfall of its business. Given enough time, Pfizer is highly likely to get back on track. Pfizer's management has stated clearly that it intends to support the dividend. In fact, the goal is to grow the dividend over the long term. Moreover, the company ended the second quarter with more than $11 billion in cash on its balance sheet, providing ample liquidity to support its business and dividend. While its dividend payout ratio is troublingly high, its cash dividend payout ratio is roughly 90%, so it still has the cash flow to cover the payout. (Dividends are paid out of cash flow, not earnings, which is why the financial impact of dividends is found on the cash flow statement.) Given that Pfizer is facing patent expirations without new drugs to replace the income it will lose, there is clearly a near-term risk. That includes a risk that the dividend could be cut. However, even with a 50% dividend cut, the yield would remain attractively high. And given the stock price, you could easily argue a cut has already been priced in. Meanwhile, the company's long history of success suggests that it will eventually work through this period. More aggressive dividend investors may want to give it the benefit of the doubt, with the worst-case scenario likely being a still above-market and peer yield. Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $375,887!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,459,146!* Now, it's worth noting Stock Advisor's total average return is 955% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 8, 2026. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Eli Lilly and Pfizer. The Motley Fool has a disclosure policy. Pfizer Trades Under 10 Times Forward Earnings With a Yield Near 6%. Here's What History Says Happens Next. was originally published by The Motley Fool