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Is PFE a good stock to buy in 2026?

Pfizer (PFE) presents an intriguing picture for investors in 2026, trading at a P/E ratio of 18.21x, which is notably below the Drug Manufacturers – General sector average of 21.1x. Our discounted cash flow (DCF) model suggests a fair value of $38.05, indicating a significant 39.4% upside from the current price. While analyst sentiment is mixed with a ‘Hold’ consensus, 39.5% of analysts rate PFE stock as ‘Buy’ or ‘Strong Buy’, suggesting potential for long-term value, though this is not investment advice.

2026 PFE price scenarios

Based on analyst consensus of $27.5 from 38 analysts. Not a prediction by Alert Invest.

About Pfizer Inc. (PFE)

Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands; biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands; and sterile injectable and anti-infective medicines, and oral COVID-19 trea

Under the leadership of CEO Albert Bourla, Pfizer Inc. navigates the dynamic global healthcare landscape. With a workforce of approximately 81,000 employees, the company leverages its extensive research and development capabilities, vast global distribution network, and diverse product portfolio to maintain a strong presence in the pharmaceutical industry. Pfizer’s distinctive strengths include its robust vaccine platform, deep experience in complex drug development, and a strategic focus on therapeutic areas with high unmet medical needs, positioning it as a major player in driving medical innovation.

PFE competitive moat and business analysis

Pfizer’s competitive moat is primarily built upon its extensive intellectual property, deep research and development pipeline, and global manufacturing and distribution scale. While the company’s net margin of 12.42% demonstrates solid operational efficiency within the healthcare sector, the lack of specific Return on Equity (ROE) or Return on Invested Capital (ROIC) data at this time means we rely on other indicators. However, the consistent reinvestment in R&D and strategic acquisitions help fortify its market position against emerging competitors and maintain the value of PFE stock.

Pfizer’s diverse revenue streams typically encompass a broad range of therapeutic areas, including oncology, internal medicine, inflammation & immunology, rare diseases, and vaccines. Geographically, its sales are distributed globally, with significant contributions from North America, Europe, and emerging markets, reflecting its worldwide presence and market reach in addressing various health needs. While specific segment and geographical breakdowns for fiscal year 2025 were not provided in detail, the company’s overall strategy focuses on maximizing value across these key markets.

The recent revenue growth of -1.6% indicates a period of transition for PFE stock, following a surge in demand during the pandemic. Managing this decline while integrating new acquisitions and driving pipeline innovation is critical for maintaining its moat. Unfortunately, no specific transcript quote is available to shed further light on management’s direct comments regarding this trend at present. Investors will be keenly watching how Pfizer manages its post-pandemic revenue normalization and focuses on new growth drivers to stabilize and grow its revenue base.

Compared to its peers in the Drug Manufacturers – General industry, Pfizer’s scale and established market presence provide a significant advantage. While specific peer data would allow a direct comparison, its wide portfolio and ongoing R&D investments suggest a resilient business model that consistently innovates to stay ahead in a competitive sector. This robust position contributes to the long-term sustainability of the PFE stock’s underlying business, making it a key consideration for potential investors.

Pfizer Inc. analyst rating

Based on 38 analysts. 39.5% rate PFE Buy or Strong Buy.

With 39.5% of analysts rating PFE stock as ‘Buy’, this indicates a notable, though not overwhelmingly strong, positive sentiment within the Healthcare sector. Given the industry’s typically stable nature and the size of Pfizer, a ‘Hold’ consensus still suggests a cautious optimism rather than a widespread bearish outlook, making PFE valuation a topic of ongoing discussion among experts.

Is PFE undervalued or overvalued?

When assessing PFE valuation, the current P/E ratio of 18.21x stands at a discount compared to the Drug Manufacturers – General sector average of 21.1x. This suggests that PFE stock might be trading at a more attractive valuation relative to its industry peers, potentially offering an entry point for value-oriented investors seeking to understand if PFE is a good stock.

Further supporting this view, our Discounted Cash Flow (DCF) model estimates a fair value of $38.05 for Pfizer, indicating a substantial 39.4% potential upside from its current share price. This considerable difference between the intrinsic value and the market price suggests that PFE could be significantly undervalued, presenting a compelling case for those evaluating PFE stock for long-term growth and capital appreciation.

PFE financial health & key metrics

For value investors, an examination of PFE’s financial health reveals a mixed but potentially attractive profile. The PFE stock trades at a P/E ratio of 18.21x, which is lower than the sector average, suggesting it could be undervalued. While revenue growth has recently shown a -1.6% decline, strong profitability metrics like a 12.42% net margin and a robust 5.85% free cash flow (FCF) yield underscore its financial stability. The DCF fair value of $38.05, representing a significant upside, further fosters the argument for PFE valuation. Despite moderate debt-to-equity and the absence of clear ROE/ROIC figures, the company’s strong cash generation and relative undervaluation present a compelling case for those seeking long-term value in the pharmaceutical space.

Pfizer Inc. earnings history & next report

Pfizer Inc. reported EPS of $0.66, beating estimates by 16.4%. Next earnings: 2026-05-05 with EPS estimate of $0.728.

With the next earnings report scheduled for 2026-05-05, investors will be keenly watching several key areas to gauge the future performance of PFE stock. The estimated EPS of $0.728 will be a critical benchmark, particularly after the company recently beat estimates by 16.4% with an EPS of $0.66. Focus will be on the performance of Pfizer’s non-COVID product portfolio, the progress of its late-stage pipeline, and management’s guidance on future revenue projections, especially as the company navigates the post-pandemic landscape. Any updates on cost-cutting initiatives or strategic partnerships will also be important for gauging the future trajectory of PFE stock.

PFE insider trading activity

Corporate insiders must report trades to the SEC within two business days.

Source: SEC Form 4 via EDGAR · Data: Financial Modeling Prep · Not investment advice

Recent PFE analyst rating changes

Pfizer Inc. stock news today

How does PFE compare to its peers?

For investors considering PFE stock, it’s beneficial to evaluate how Pfizer Inc. stacks up against other prominent players in the Healthcare sector, particularly within the Drug Manufacturers – General industry. A comparative analysis allows for a deeper understanding of PFE’s strengths and weaknesses relative to its peers. As specific peer companies were not provided for this analysis, we recommend conducting individual research into other major pharmaceutical firms to gain a comprehensive market perspective.

FAQ — Pfizer Inc. (PFE) stock