The recent COVID vaccine has thrust the Pfizer corporation into the public limelight, though the company is hardly the new kid on the block. Pfizer is already known for their biotech and medical innovations, and their stock may be found in many pharmaceutical and dividend portfolios.
But individual investors may be wondering: Is Pfizer a good stock to buy now that vaccination efforts are intensifying? Let’s consider this question a little more thoroughly and evaluate how Pfizer might fit into your portfolio.
Will Pfizer Stock Go Up in the Future?
Concern over viral variants has led to an increased push for full FDA approval for the COVID vaccine. On August 3, the New York Times reported that the FDA is expected to give final approval to the Pfizer vaccine as early as September 2021.
This news comes alongside the ongoing debate over vaccine mandates, particularly regarding healthcare workers and employees working in congregate settings. While the ethics of this is no small matter, there can be no doubt that the near future will see an increase in vaccinations.
According to data published in July 2021, Pfizer is anticipated to make $26 billion from the shot. Again, the ethics of this is a matter of some debate, but investors may wonder how this might impact Pfizer’s stock prices in the immediate future.
All that is to say that Pfizer stock is likely to increase in the near future, though the magnitude of the increase will depend on public policies and acceptance by the American people.
It’s also important to recognize that their recent success is largely circumstantial, which could lead to some market volatility as the pandemic eventually eases.
Pfizer Stock: Buy or Sell?
Let’s return to our original question: Is Pfizer a good stock to buy? We’ve touched on the fact that Pfizer stock has some real potential for growth, thanks to the advance of the vaccine, but that alone doesn’t guarantee that Pfizer is a worthwhile investment.
Before you invest in Pfizer, there are some factors to consider:
How Much Will Pfizer Grow?
Every investor understands that their profits don’t depend on how much a company is worth, but on how much a company can grow. And with a biotech giant like Pfizer, it’s not as if new investors can get in on the ground floor. While the future of Pfizer looks very promising, it’s not very clear how much a new investor can expect to make, nor is it clear what Pfizer’s long-term potential might be.
How Does Pfizer Fit into My Portfolio?
Whenever you consider investing in an individual stock, you should always ask the same question: How does this stock fit into my existing portfolio? New investors should concentrate on diversifying their portfolio, a time-honored strategy that mitigates risk and provides for steady growth.
If you already have a stock portfolio, you may consider adding Pfizer. Some mutual funds, for example, even specialize in pharmaceutical stocks, so if you use a stockbroker, you may want to inquire about your options.
Are There Alternatives to Pfizer?
If biotech interests you, there may be investment alternatives to Pfizer. In the past year, Pfizer was replaced on the Dow by a company called Amgen.
This up-and-coming biotech company has already received praise for adhering to environmental social governance (ESG) standards. Furthermore, collaboration with other biotech companies indicates a strong likelihood of growth in the immediate future.
If you’re uncertain about Pfizer, Amgen may offer an alternative path.
When Should I Sell My Pfizer Stock?
The question of when to sell stock is always a difficult one. We’ve already noted that the success of Pfizer could be circumstantial. Anytime you’re dealing with medical innovation, you run into uncertainty, especially given vaccine skepticism in the public square.
If you currently own Pfizer stock, hang onto it until the pandemic lifts and then reevaluate based on the condition of the market at that time.
When Should I Buy Pfizer Stock?
If you’ve committed to buying Pfizer stock, then the best time to do so is as soon as you’re finished reading this article!
We’re already in a period of rapid growth for the company and that is only expected to continue for the immediate future, especially with the continued rollout of vaccines.
As always, however, we strongly recommend that you avoid investing large amounts in any individual stock. Never invest money that you could otherwise use to pay off existing debts, and never invest money that you (or your family) can’t afford to lose.
Can I Day Trade Pfizer Stock?
Sorry, day traders, but Pfizer’s current stock performance doesn’t make them the best company for day trading! It’s not that there isn’t some market volatility, which day traders have traditionally used to their advantage. It’s that the overall trendline for Pfizer is on an upward swing, which favors investors who buy and hold, rather than the catch-and-release method associated with day trading.
Ways to Buy Pfizer Stock
As noted earlier, Pfizer has been around for a while, making it fairly simple to buy stock in the company. Pfizer is easily available in dozens of index funds, mutual funds, and exchange-traded funds (ETFs).
If you already use a stockbroker, ask them how you might incorporate Pfizer into an existing portfolio.
New investors can also purchase Pfizer stock, but be prepared to invest in multiple companies to properly diversify your portfolio. Fortunately, if biotech is your thing, you may be able to use your broker to specifically invest in the biotech or pharmaceuticals sector.
Learn More at Gorilla Trades
We hope you’ve enjoyed our brief analysis of Pfizer stock, which is showing strong growth potential and could be an option for a balanced investment portfolio.
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