Pfizer (PFE) just laid out a 2026 outlook that underwhelmed the market, with lower expected earnings and revenue as COVID-19 sales fade and key drugs lose exclusivity, putting near term growth firmly under the microscope.
See our latest analysis for Pfizer.
Even with today’s dip on the 2026 guidance, Pfizer’s 90 day share price return of 10.59% suggests sentiment has been quietly improving, while the 1 year total shareholder return of 12.25% hints that long term confidence is slowly rebuilding.
If Pfizer’s mixed outlook has you reassessing your healthcare exposure, this could be a good moment to explore other healthcare stocks that might offer a different balance of growth and stability.
With shares still trading at a hefty intrinsic discount and analysts only penciling in modest upside, the key question now is whether Pfizer is a classic value opportunity or if the market has already priced in a muted recovery.
Most Popular Narrative Narrative: 9.1% Undervalued
With Pfizer closing at $26.43 versus a narrative fair value near $29, the most followed storyline still sees upside from today’s reset expectations.
Sustained shift of the portfolio toward high value biologics, innovative vaccines, and personalized therapies (including next generation mRNA platforms and first in class immunotherapies) enables pricing power and supports premium net margins, even as competitive and regulatory pressures increase for low margin legacy drugs.
Read the complete narrative.
Curious how shrinking top line forecasts can still support a higher value? The secret lies in fatter margins, disciplined share assumptions, and a surprisingly rich future multiple.
Result: Fair Value of $29.08 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, persistent regulatory pressure on U.S. drug pricing and looming patent expirations on key oncology brands could easily derail this undervalued thesis.
Find out about the key risks to this Pfizer narrative.
Build Your Own Pfizer Narrative
If you see the story differently or want to stress test the numbers yourself, you can build a custom Pfizer view in just minutes: Do it your way.
A great starting point for your Pfizer research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
Looking for more investment ideas?
Use the Simply Wall Street Screener to uncover fresh opportunities that match your strategy so you are not left watching others capture the upside first.
Target robust growth potential by scanning these 25 AI penny stocks that are shaping the next wave of intelligent technology and data driven innovation.
Lock in steadier income streams by weighing up these 13 dividend stocks with yields > 3% with the potential to support long term, yield focused portfolios.
Capitalize on market mispricings by zeroing in on these 910 undervalued stocks based on cash flows that may offer compelling upside relative to their intrinsic worth.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include PFE.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
