How To Buy Pfizer Stocks (PFE)

Introduction

Pfizer is an old and respected pharmaceutical and biotechnology company. The company has developed some of the world’s most impactful medicines and vaccines. 

As big pharma continues to grow (over a 2% increase in worldwide revenue between 2021 and 2022), PFE could be a great stock to buy right now. The Pfizer stock has a market capitalization of $160.41 billion, which is a significant number, ranking among the best pharmaceutical companies such as Vertex (VRTX), Sanofi (SNY), and Amgen (AMGN).

Highlights and Key Takeaways

• Pfizer stock has a market cap of $160.41 billion.

• PFE is an undervalued stock, which gives a great potential for future gains.

• PFE has an impressive run of drug approvals and candidates in the pipeline, cementing it as a valuable company.

• To place a stock order on Pfizer, create an account with a regulated broker.

Understanding Pfizer As an Investment

Why Invest in Pfizer?

If you are exploring how to invest in stocks, Pfizer is likely to be one of the most exciting names you can come across. The company had an impressive run during the COVID-19 pandemic, especially due to the vaccines and drugs sold. However, the company slashed its FY23 expected revenue by 13% due to a drop in sales. This has placed investors in a dilemma, but there’s no cause for concern as PFE still proves to be a good stock to invest in.

Below are some reasons why you shouldn’t take your eyes off PFE:

• Seemingly undervalued: PFE’s current share price doesn’t reflect its full potential as a pharma and biotech company. The major reason behind this undervaluation is the decline in sales after the coronavirus pandemic. However, for investors solely concerned about long-term profit, it’s a good time to invest as the stock trades at less than half of its pandemic highs.

• Strong dividend profile: Pfizer shares have a solid dividend profile, making them suitable for investors who want to reduce market risk and volatility. Constant dividend payments to investors will reduce risks or potential losses that may occur due to a drop in stock prices.

• Impressive history of approvals: Pfizer has an impressive record of new drug approvals, making it a formidable company in the pharmaceutical industry. New other drugs are in development, with the company boasting 83 candidates in its pipeline as of October 31, 2023. The portfolio backs Pfizer stock, making it attractive for investment.

• Seagen’s acquisition can boost revenue: Seagen, a biotech company with a specialty in cancer treatment was acquired by Pfizer for a total value of $43 billion. Since Pfizer’s oncology portfolio wasn’t performing well, the acquisition of Seagen provides a huge chance for growth.

“Don’t buy ‘cheap’ stocks just because they’re cheap. Buy them because the fundamentals are improving” — Peter Lynch

Risks Associated With Investing in Pfizer

All stock investments have a degree of risk. However, some have a lower risk percentage than others. Before investing in PFE, consider your risk tolerance and investment goals. Some of the risks associated with PFE are:

• PFE stock volatility: Market volatility describes the degree to which stock prices rise or fall. The general stock market is highly volatile, so it’s important to be aware before making investment decisions or buying PFE. Things like sudden fluctuations in Pfizer revenues or profits, resignation of top executives, or overall changes in stock market sentiment can impact PFE and cause its price to move erratically. 

• Competition: In the pharma industry, competitors pose a significant risk to PFE’s market value. They can cause a reduced market share, which may negatively affect investors’ profitability. Some of Pfizer’s main market competitors are Johnson & Johnson (JNJ), Roche Holding AG (RHHBY), and Eli Lilly and Co. (LLY).

• Dividend risk: Dividends can fall lower than expected for investors, which may cause a drop in stock price. When the stock price drops, investors and traders make a loss.

• Political or legislative risk: Political risk is the tendency for political actions in a country to affect a company’s stock price. For example, a change in sovereign power can lead to an investment failing. A legislative risk is the risk of laws negatively affecting the business (in this case, Pfizer).

How To Buy Pfizer Stock

Choosing a Brokerage

The first step to buying Pfizer stock is by using the appropriate brokerage. The broker provides a platform where you can access various stocks, including PFE. So, to invest in Pfizer, ensure the brokerage account you choose checks out based on these factors:

• User interface: Ensure that the broker’s site has intuitive navigation and it’s easy for users to access the different features and sections available. You should also go for broker platforms that are visually appealing with the appropriate color schemes and typography. Make sure there are clear call-to-action buttons to trade or invest easily.

• Available tools and resources: Some brokers offer basic educational tools for inexperienced traders or investors. They may also offer advanced trading tools for more experienced investors or traders. So, you should choose the broker that offers the level of knowledge you’re interested in. 

• Trading fees: Many brokers charge commissions, while a few offer a commission-free trading experience. Brokers who don’t charge commissions may have account fees, which may be annual, inactivity, or maintenance fees. Ensure you’re aware of the broker’s fee structure before creating an account.

• Review track record of reliability: Carefully choose a broker with a good track record and no signs of insecurity. 

• Customer support: Your broker should be easy to contact. There should be more than one way to reach out to them in case of complaints or inquiries. Most reputable brokerage firms have email support and a Live Chat.

You should always trade with the best stock brokers as they provide all or a multiple of the above capabilities/advantages. The brokers have a solid reputation in the market and will keep your funds safe at all times.

Placing a Stock Order

To place a stock order on Pfizer, here are the steps to follow:

• Step 1: Open an account with a reputable brokerage and navigate the platform to choose PFE stock. 

• Step 2: Choose the number of PFE shares you want to buy.

• Step 3: Select an order type – market order or limit order. A limit order allows you to choose a price to buy or sell stocks, while a market order lets you buy or sell stocks at the current price.

• Step 4: Place the stock order by tapping the “Place Order” button or any other appropriate trading Call To Action(CTA) button on the website.

Monitoring Your Investment

Understanding Stock Performance

Once you buy Pfizer shares, you should carefully monitor its performance in the market. Keeping track of this lets you know the right time to sell your stock. To monitor the progress of your stock, you need to review financial reports and learn to read the PFE chart. 

• Reading Pfizer’s stock chart will provide the necessary information about the company’s stock history, current share price, and trading volume. The price is typically on the vertical axis, while the time is on the horizontal axis.

• PFE technical analysis is a vital part of stock chart assessment. It entails using indicators like Bollinger Bands, Moving Averages (MAs), ultimate oscillator, etc., to predict stock price movements. Ensure you leverage the technique to identify potential buy or sell points. 

• It’s also important to stay up-to-date on Pfizer news and economic developments, as these can affect the stock’s price. 

• Don’t forget to assess PFE financials to know how the company performs at any given time. Be keen on indicators like revenue, operating income, total debt to equity, cash flow, value of assets and liabilities, etc. As a result, you can predict how the stock’s price is likely to change in the market and make appropriate trading decisions that can optimize your returns or minimize potential losses. 

• Lastly, check out Pfizer’s investor relations to ensure you remain updated on the company’s plans. 

When To Sell Your Stock

Knowing when to exit your stock is critical in protecting gains and overcoming potential losses. Here are a few reasons you might want to sell your PFE stock:

• The company’s fundamentals have changed.

• The stock reaches your price target.

• You have a legitimate need for the profit or money invested in the stock. 

How To Invest in Pfizer With Funds

You can also invest in PFE via funds that include the stock in their portfolio. The funds offer a greater diversification, lowering the risks of holding a single stock. To invest in Pfizer with index funds or exchange-traded funds (ETFs) that own PFE, open an online brokerage account. Examples of mutual funds holding Pfizer are:

• Vanguard Total Stock Market ETF.

• Vanguard 500 Index Fund.

• Fidelity 500 Index Fund.

• SPDR S&P 500 ETF Trust.

• Vanguard Health Care Fund.

• Schwab US Dividend Equity ETF.

• iShares Core S&P 500 ETF.

Also, trade ETFs with a regulated broker to protect your funds. Like stock brokers, consider the platform’s fees, customer support, trading tools, interfaces, and more. You may also want to learn how to buy ETF profitably by understanding the broker’s expense ratio, monitoring trading volumes, and checking the fund’s tracking error. 

Conclusion

Pfizer remains one of the most respected pharma and biotech companies in the world. The stock has a strong dividend profile and an impressive history of drug and vaccine approvals, which may result in an increase in EPS for investors. To buy PFE, ensure you create an account with a reputable and regulated broker. Regulated brokers offer an added security layer for your funds, ensuring a safe investment. 

FAQ

How Can I Purchase Pfizer Stock?

To purchase Pfizer stock, create an account with a reputable broker and search for Pfizer (PFE). Decide on the amount of shares you want to buy and click on “Place Order.”

Does Pfizer Pay Dividends?

PFE pays dividends quarterly. The growth of its dividend over the years has been impressive and serves as an additional income for an investor’s portfolio.

Are Pfizer Shares a Good Buy?

Yes, Pfizer shares are a good buy now because its stock is greatly undervalued. It’s a good purchase for both income investors and long-term investors.

What Is the Best Stock To Buy Right Now?

PFE is the best stock to buy right now. However, you can invest in other potentially gainful undervalued stocks like Teekay Tankers (TNK), Mueller Industries (MLI), Danaos (DAC), Medifast (MED), and Daqo New Energy (DQ).