Pfizer‘s (NYSE: PFE) shares have been southbound for the better part of three years, partly because it was unable to repeat its incredible financial performance during the early pandemic years. However, the company took another dive this year along with the broader market; President Donald Trump’s trade wars are leaving few stocks completely unscathed.
There is a silver lining, though, at least for investors focused on the long game. At these levels, Pfizer’s shares might just be a steal. Here’s why the stock is worth buying today.
The Trump administration has so far spared pharmaceuticals from its announced tariffs, but has threatened several times to impose some on the industry. Like many other drugmakers (and companies in other sectors, for that matter), Pfizer likely prefers doing much of its manufacturing abroad because it’s cheaper. However, tariffs defeat that purpose, and if they’re eventually levied on the pharmaceutical industry — as some CEOs think they will be — Pfizer might be well equipped to handle them due to its significant existing manufacturing capacity in the U.S.
At a recent conference, Pfizer CEO Albert Bourla pointed out that the drugmaker has the largest U.S.-based manufacturing network in the industry, with 13 sites up and running. Many of those facilities have high capacities to make blockbuster products that are in high demand. In Bourla’s view, that puts Pfizer in a good position even if tariffs were to persist.
For many drugmakers without significant manufacturing sites in the U.S., tariffs might lead to meaningful cost increases and margin expansions. Pfizer, though, has the flexibility to shift its manufacturing operations into the U.S. and avoid the tariffs all in one fell swoop.
Manufacturing locally might be more expensive than doing it abroad, but it would be cheaper than dealing with the additional costs imposed by tariffs. That’s one of the goals of tariffs: to shift jobs back into the country. So Pfizer is a drugmaker worth monitoring in the current environment, given its significant manufacturing capabilities within U.S. borders.
Pfizer’s financial results haven’t been as impressive as in 2021 and 2022 because it no longer generates tens of billions of dollars in revenue from its coronavirus products, and they’re somewhat unpredictable. The drugmaker can’t count on sales from its vaccine, Comirnaty, to grow steadily from one year to the next. Thankfully, Pfizer has decreased its exposure to this product and to its coronavirus medicine, Paxlovid.
DJ Kamal Mustafa
I’m DJ Kamal Mustafa, the founder and Editor-in-Chief of EMEA Tribune, a digital news platform that focuses on critical stories from Europe, the Middle East, Africa, and Pakistan. With a deep passion for investigative journalism, I’ve built a reputation for delivering exclusive, thought-provoking reports that highlight the region’s most pressing issues.
I’ve been a journalist for over 10 years, and I’m currently associated with EMEA Tribune, ARY News, Daily Times, Samaa TV, Minute Mirror, and many other media outlets. Throughout my career, I’ve remained committed to uncovering the truth and providing valuable insights that inform and engage the public.
