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PFE

Pfizer Stock: Still Priced Like It's Dead Money

May 03, 2026 — 07:35 pm EDT

Written by

Reuben Gregg Brewer for

The Motley Fool->

Key Points

- Pfizer is facing headwinds today, which is why investors seem to be ignoring the stock.

- The giant pharmaceutical company is still an industry leader and a highly innovative competitor.

- 10 stocks we like better than Pfizer ›

During the coronavirus pandemic, investors got a little too excited about Pfizer's (NYSE: PFE) vaccine opportunity. When demand for COVID vaccines cooled off, the stock plunged. And it hasn't really gone anywhere since, still down over 50% from its 2021 high. But Pfizer isn't dead money if you have a long-term view of investing. Here's why you might still want to buy it.

Pfizer isn't hitting on all cylinders

Pfizer is dealing with some headwinds. The drop in demand for COVID vaccines is just one example of the issues management is dealing with. Another is a series of upcoming patent cliffs, when generic competition is likely to lead to material revenue declines for some of the company's key drugs. And then there is the fact that Pfizer has yet to bring a GLP-1 weight-loss drug to market, leaving others to benefit from strong demand for such products.

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Image source: Getty Images.

However, investors shouldn't count Pfizer out just yet. It has quickly pivoted on the GLP-1 side, buying a company with an attractive weight-loss drug in development. It also partnered with a Chinese company working on a GLP-1 pill, signing up to distribute the drug if it gets approved. It also has ongoing, and advanced, efforts to develop drugs in the oncology and migraine spaces.

Pfizer remains a highly innovative company. And a strong competitor in the highly competitive pharmaceutical sector. It may not be hitting on all cylinders right now, but history suggests that the company will eventually get back on track.

Things don't always line up as well as planned

The real problem here is that investors are so focused on companies like Eli Lilly (NYSE: LLY), which are doing very well thanks to its GLP-1 drugs, that they are ignoring Pfizer. That's not surprising, but it could be a mistake, particularly if you are a dividend investor. Eli Lilly's yield is a tiny 0.6% as it trades near all-time highs, while Pfizer's yield is a huge 6.4% as it languishes at low levels.

Pfizer's dividend will be under pressure until the company introduces new blockbuster drugs to replace those set to lose patent protection over the next couple of years. However, management has specifically stated that supporting the current dividend payment is a key corporate goal.

Investors are getting paid very well to deal with some near-term uncertainty while waiting for Pfizer's research and development efforts to bear fruit. And, if history is any guide, when Pfizer gets back on track, it will likely be afforded a higher valuation. So this income stock could turn into a growth stock if you stick around long enough.

Should you buy stock in Pfizer right now?

Before you buy stock in Pfizer, consider this:

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Reuben Gregg Brewer 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.