Astellas Pharma and Pfizer's Xtandi shows long-term survival in prostate cancer
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CNBC
10 hours ago
- CNBC
These buy-rated stocks are undervalued and can perform in the future, BMO says
As the stock market continues to churn near all-time highs, BMO Capital Markets has some ideas for individual stocks that can work in the future. The backdrop for BMO's recommendations: U.S. stocks recently hitting all-time highs, a stunning recovery from the early April sell-off on the back of President Donald Trump's imposition of higher tariffs. Now investors ask if there's cause for optimism that more gains are in store — or if the market is too overbought. But BMO is confident, with chief investment strategist Brian Belski telling clients in a recent note that U.S. stocks remain in a bull market. While he acknowledged some valuation measures are above their historical average, he said they're probably not as severe as they look. "We understand the sentiment, but we disagree with any suggestion that U.S. stocks may be headed for a severe or prolonged downturn based on valuation alone," Belski wrote. "Instead, we continue to recommend that investors 'stay the course' and use any potential periods of market weakness as a buying opportunity." Belski said those investors who are worried about valuations can protect themselves by looking at companies whose shares sell at lower price-to-earnings ratios, rather than higher-multiple growth stocks. To find such stocks, BMO screened for S & P 500 stocks that the bank has an outperform rating on and with a forward price-to-earnings multiple for the next 12 months below 15. Here's are several that turned up: Pharmaceutical company Pfizer made it on to the BMO screen. The maker of the Eliquis blood thinner and Paxlovid treatment for Covid last week said the Food and Drug Administration is considering removing its authorization of the company's Covid-19 vaccine for healthy children under the age of 5. Pfizer has fallen more than 5% in 2025, on track for its fourth straight annual decline, although it yields almost 7%. While the majority of analysts polled by LSEG have a hold rating, the average price target implies shares can rally more than 16% in the next year. Constellation Brands , the brewer of Corona and Modelo beer, also met the BMO criteria. Shares have fallen 24% so far in 2025, on pace for their worst year since 2018. The stock yields almost 2.5%. Despite this year's rough patch, Wall Street expects a recovery. The consensus rating among analysts surveyed by LSEG is buy, with an average price target projecting about 26% upside over the next year.
Yahoo
10 hours ago
- Yahoo
Pfizer Oncology Drugs Drive Sales in Q2: Will the Trend Continue?
Pfizer PFE is one of the largest and most successful drugmakers in oncology. It boasts a strong portfolio of approved cancer medicines as well as a robust pipeline of cancer candidates with a focus on multiple modalities, including small molecules, antibody-drug conjugates (ADCs) and immuno-oncology biologics. The addition of Seagen in 2023 also strengthened its position in oncology by adding four ADCs — Adcetris, Padcev, Tukysa and Tivdak. The acquired Seagen products contributed meaningfully to Pfizer's revenues in 2024 and in the first half of 2025. Seagen also has some next-generation ADC candidates in its pipeline. Oncology sales comprise more than 25% of Pfizer's total revenues. Its oncology revenues grew 9% in the first half of 2025, driven by drugs like Xtandi, Lorbrena, the Braftovi-Mektovi combination and Padcev, which made up for declining sales of drugs like Ibrance. Xtandi recorded alliance revenues of $566 million in the quarter, up 14% year over year. Lorbrena sales rose 48% to $251 million. Braftovi/Mektovi revenues were $182 million, up 23% year over year. New drug, Elrexfio, generated sales of $85 million in the second quarter. Ibrance revenues declined 8% year over year to $1.05 billion due to continued competitive pressure across markets. Among the ADCs added from the acquisition of Seagen, Adcetris sales were $255 million in the second quarter, which declined 9% year over year due to competitive pressure in the United States. Padcev rose 38% to $542 million, driven by strong demand trends. Pfizer has ventured into the oncology biosimilars space and markets six biosimilars for cancer. Revenues from oncology biosimilars were $353 million in the second quarter, up 27% year over year. Pfizer also advanced its oncology clinical pipeline with several candidates entering late-stage development, like sasanlimab, vepdegestrant and sigvotatug vedotin. By 2030, it expects to have eight or more blockbuster oncology medicines in its portfolio. In July, it closed a global ex-China in-licensing agreement with China's 3SBio for exclusive rights to the latter's dual PD-1 and VEGF inhibitor, which will strengthen its oncology pipeline. Pfizer is also working on expanding the labels of approved oncology drugs like Padcev, Adcetris and Elrexfio, among others. With all the above developments, Pfizer's future in cancer treatment looks promising. Continued growth of Pfizer's diversified portfolio of oncology drugs should support top-line growth in the second half of 2025. Competition in the Oncology Space Other large players in the oncology space are AstraZeneca AZN, Merck MRK and Bristol-Myers BMY. For AstraZeneca, oncology sales now comprise around 43% of total revenues. Sales in its oncology segment rose 16% in the first half of 2025. AstraZeneca's strong oncology performance was driven by medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo). Merck's key oncology medicines are PD-L1 inhibitor, Keytruda and PARP inhibitor, Lynparza, which it markets in partnership with AstraZeneca. Keytruda, approved for several types of cancer, alone accounts for around 50% of Merck's pharmaceutical sales. Keytruda's sales rose 6.6% to $15.1 billion in the first half of 2025. Bristol-Myers' key cancer drug is PD-L1 inhibitor, Opdivo, which accounts for around 20% of its total revenues. Opdivo's sales rose 9% to $4.82 billion in the first half of 2025. PFE's Price Performance, Valuation and Estimates Pfizer's stock has declined 0.4% so far this year compared with a decrease of 1.2% for the industry. Image Source: Zacks Investment Research From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its 5-year mean. Going by the price/earnings ratio, the company's shares currently trade at 8.08 forward earnings, lower than 14.45 for the industry and the stock's 5-year mean of 10.78. Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2025 earnings has risen from $3.05 per share to $3.12 per share, while that for 2026 has gone up from $3.08 to $3.09 per share over the past 30 days. Image Source: Zacks Investment Research Pfizer has a Zacks Rank #3 (Hold). 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 AstraZeneca PLC (AZN) : Free Stock Analysis Report Bristol Myers Squibb Company (BMY) : Free Stock Analysis Report Pfizer Inc. (PFE) : Free Stock Analysis Report Merck & Co., Inc. (MRK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13 hours ago
- Yahoo
Is Pfizer's 6.8%-Yielding Dividend Too Good to Be True?
Key Points Pfizer's payout ratio is around 90% of earnings, which is high for a dividend stock. It reported strong operational growth of 10% in its most recent quarter. The company continues to focus on cutting costs to improve overall profitability. 10 stocks we like better than Pfizer › Finding a high-yielding stock that is safe to hang on to can be a rarity. When yields get high (e.g., more than 5%), usually there's a reason behind it. And investors are often hesitant to invest in such stocks, fearing that those incredibly attractive payouts may not end up being sustainable. One of the highest yields you can get right now is from Pfizer (NYSE: PFE). The healthcare giant offers a yield of 6.8%, which is more than five times what the average rate is for the typical stock on the S&P 500 -- just 1.2%. Could Pfizer be one of the best dividend stocks to add to your portfolio right now, or is its yield too good to be true? Is Pfizer's high payout ratio a concern? A common metric to rely on when evaluating the safety of a dividend stock is its payout ratio. This tells you how much of a company's earnings are being paid out in the form of dividends. The higher it is, the more unsustainable the payout potentially is. Pfizer's payout ratio is currently around 90%, which suggests there isn't a big buffer in its bottom line. However, that number is skewed due to Pfizer's year-end results. In the last three months of 2024, the company incurred billions in asset impairment charges, restructuring expenses, and other non-cash items, which weighed down its earnings. And since the payout ratio looks at a company's earnings over the past 12 months, all it takes is one bad quarter to weigh it down. This is where relying on cash flow can be a better indicator of how healthy a dividend really is. In the trailing 12 months, Pfizer's free cash flow totaled $12.4 billion, which is far higher than the $9.6 billion it paid out in dividends over the past year. This implies the dividend is indeed safe. Recent results suggest the company is going in the right direction As of the end of last week, Pfizer's stock price is down 5% year to date, despite it already taking a beating in previous years. Investors remain concerned about not only its dividend, but also its growth potential. Pfizer is working to reduce costs while also growing its operations. Acquisitions, including its massive $43 billion purchase of oncology company Seagen in 2023, opened up new doors and opportunities for the business that look to be paying off. In its most recent quarter, which ended on June 29, the company reported year-over-year revenue growth of 10%, with sales topping $14.7 billion. Meanwhile, the company continues to reduce costs as it adapts to declining demand for its COVID-19 vaccine and pill. Its diluted earnings per share this past quarter totaled $0.51 -- higher than the rate of its quarterly dividend payment ($0.43). Pfizer's dividend looks safe, and the stock still looks cheap From looking at its financials, there aren't any glaring concerns to suggest that Pfizer's dividend is in trouble. I believe investors are being overly cautious with the stock. And with Pfizer focusing on cost reduction while also still growing its business, it's a top income-generating investment you can own for the long haul. It's currently trading at a price-to-earnings multiple of just 13, making it a fairly cheap stock to own. There are risks for many healthcare companies these days as healthcare reform may impact future profitability, but that can be difficult to predict and forecast. Pfizer is doing an excellent job of managing what it can control, and it's among the best stocks to buy in the healthcare sector. Should you buy stock in Pfizer right now? Before you buy stock in Pfizer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 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 $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 18, 2025 David Jagielski 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. Is Pfizer's 6.8%-Yielding Dividend Too Good to Be True? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
