Pfizer: A Step-By-Step Strategy Before Earnings

Summary:

• Pfizer’s stock has plummeted due to declining COVID-19 sales, expected patent losses, and political pressures, despite a high 6.45% dividend yield.
• PFE’s strong economic moat is threatened by upcoming patent expirations, but its oncology segment shows promising growth potential.
• The financial outlook includes flat revenue growth, cost optimization, and a commitment to maintaining dividends, but EPS is expected to remain flat.
• A dynamic hedging strategy using options can yield remarkable returns with an expected slightly higher IV before earnings.

Article Thesis

What a bumpy ride for Pfizer (NYSE:PFE), one of the big pharma giants: if in 2021-2022 the market seemed to believe that COVID would last forever, catapulting the stock towards $60, today the price is not only less than half, but

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PFE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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