Is Pfizer an Excellent Dividend Stock to Buy? | PFE Stock Analysis

Parkev Tatevosian, CFA•Sep 17, 2026

Summary

Parkev provides a comprehensive analysis of Pfizer, focusing on the company's integration of artificial intelligence into its core operations, particularly in accelerating drug discovery, optimizing manufacturing, and enhancing sales force effectiveness. Parkev emphasizes management's confidence in achieving high single-digit revenue growth between 2028 and 2033, which would represent a stabilization after years of pandemic-induced volatility. While Pfizer's historical operating margins have fluctuated wildly, Parkev expects them to settle between 20% and 30% over the long term.

Pfizer (PFE): Parkev reiterates a buy rating for Pfizer, noting that Parkev's discounted cash flow model suggests a fair value of $50 per share compared to the current market price of $28, representing over 80% upside. Parkev notes that while the company's current forward PE ratio of 9.6 reflects recent anemic growth, the entry into the weight loss treatment market provides a significant catalyst for future expansion. Parkev views the stock as a solid choice for investors seeking diversification and a favorable risk-reward ratio.

Eli Lilly (LLY): Parkev mentions that Parkev personally owns Eli Lilly stock in Parkev's portfolio. Parkev notes that Eli Lilly has reported better average returns on invested capital than Pfizer over the last decade. Parkev highlights that Eli Lilly is currently benefiting significantly from the booming market for weight loss treatments.

Novo Nordisk (NVO): Parkev states that Parkev has been watching Novo Nordisk stock closely as a competitor in the pharmaceutical space. Like Eli Lilly, Novo Nordisk is currently outperforming Pfizer in terms of returns on invested capital due to its successful weight loss drug portfolio. Parkev views the company as a key player in the sector that Pfizer is attempting to enter with a pipeline of tailor-made products.

Mentioned Stocks

PFE

Sentiment: BUYAction: RECOMMENDED

Reasoning: Parkev values Pfizer at $50 per share based on Parkev's discounted cash flow model, suggesting over 80% upside from the $28 price level. Parkev believes the company is well-positioned for long-term growth due to AI initiatives in drug discovery and upcoming weight loss treatments. Despite a low forward PE of 9.6, Parkev views the risk as relatively low for long-term investors seeking diversification.

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LLY

Sentiment: BUY

Reasoning: Parkev owns Eli Lilly and notes that the company has achieved superior returns on invested capital compared to Pfizer over the last decade. Parkev highlights Eli Lilly's current success in the weight loss treatment market as a key driver of performance. Parkev views the company as a benchmark for premium pharmaceutical business characteristics that Pfizer currently lacks.

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NVO

Sentiment: HOLD

Reasoning: Parkev is monitoring Novo Nordisk due to Novo Nordisk's leadership in the weight loss drug category and high returns on invested capital. Parkev uses Novo Nordisk as a comparison to show that there is significant room for new entrants like Pfizer in the tailor-made weight loss market. Parkev considers Novo Nordisk a key player in the sector that provides better average returns than Pfizer's current performance.

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