Analysis of PFE Price: Is the Stock Undervalued?

FXOpen

Yesterday, the price of Pfizer's stock rose by more than 2.2%, while the S&P 500 index remained almost unchanged from the opening to the closing of trading. This fact is noteworthy, considering that for many months the price of PFE stock performed worse than the market - if the S&P 500 grew by 23% during 2023, then the price of PFE decreased by approximately 43%.

The decline in 2023 (shown by the red channel) was disappointing. But what about now - is the situation changing? Are investors missing out on something important by turning away from PFE?

Several factors indicate that PFE stock may have optimistic prospects.

Fundamentally - Investors Place has included PFE in the list of the most undervalued stocks for reasons such as:
→ 2023 saw a record number of FDA approvals. New drugs could boost sales.
→ Pfizer acquired Seagen, significantly expanding its capabilities in cancer research. This supports the company's strategy to become a world-class leader in oncology.
→ By 2030, Pfizer plans to release 8 drugs that could become "blockbusters."

From a technical analysis perspective of the daily chart of PFE:
→ Attention is drawn to the 3 candles from December 13-15, 2023 - on each of these days, over 100 million shares were traded on the NYSE, which is unusually high for this market. Large investors may have been building long positions - as the price of PFE rose out of the zone marked by the 3 candles in purple.
→ Throughout 2024, the price attempted to drop below the indicated zone, but each time it did not make progress.
→ The decline on April 25 looks like a Final Shakeout pattern in Richard Wyckoff's terminology, indicating the completion of the stock accumulation process.

The price action in May 2024 looks extremely bullish:
→ PFE stock is outperforming the market.
→ The RSI indicator remains above the level of 50.
→ The downtrend has been broken.

According to TipRanks, the average forecasted price of PFE stock by Wall Street analysts is $33.15 (+13.10% from current levels).

Buy and sell stocks of the world's biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Shares

AAPL Shares Drop Following the Apple Intelligence Presentation Is ADBE Stock Undervalued? MSFT Shares Surge on Record Yearly Volumes NIO Shares Surged Over 9% on Sales Growth Expectations Elon Musk Contributes to NVDA Price Surge to a New Record

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: S&P 500 Index, US Dollar, FTSE 100 Index, Gold Price

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of FXOpen UK, as he breaks down the most significant news reports and shares his expert insights.

  • S&P 500
Indices

European Stock Indices Decline Amid Political Uncertainty

Today, the Eurostoxx 50 index (Europe 50 on FXOpen) has dropped below the early May minimum, reflecting escalating market concerns over the upcoming French elections, as reported by Reuters. Finance Minister Bruno Le Maire's acknowledgment that the current political crisis

Forex Analysis

NZD/USD Exchange Rate Falls from Nearly 5-Month High

The NZD/USD exchange rate has dropped from its highest level in nearly five months. On Wednesday, following the release of US inflation data, the NZD/USD rate exceeded 0.6220 for the first time since 15 January 2024.

However,

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.