The Food and Drug Administration approved Pfizer (PFE) and BioNTech‘s (BNTX) Covid vaccine in late August, sending Pfizer stock into a profit-taking zone.
But the companies just began submitting data to the FDA in the hopes of securing full approval for their booster shot — and Pfizer stock fell. Still, the White House’s Covid task force has said it plans to allow booster shots for recipients of the Pfizer/BioNTech and Moderna (MRNA) vaccines to begin Sept. 20. The third shot will follow eight months after the second.
Meanwhile, the FDA says it’s still collecting data from Johnson & Johnson (JNJ) to determine whether recipients of that one-dose shot will need a booster dose.
On the same day Pfizer won full approval for its BioNTech-partnered Covid shot — now known as Comirnaty — the company said it would buy biotech Trillium Therapeutics (TRIL) for $2.26 billion. Trillium is working on immuno-oncology treatments.
Pfizer also recently topped second-quarter expectations and boosted its full-year outlook.
So, all in all, is Pfizer stock a buy?
Pfizer Stock Fundamentals: Earnings Strong
In the second quarter, adjusted Pfizer earnings were $1.07 per share, soaring 73% year over year. Sales rocketed 92% to $18.98 billion. Both measures beat forecasts.
The company’s Covid vaccine brought in $7.8 billion in sales.
Revenue from blood thinner Eliquis, breast cancer drug Ibrance and pneumonia vaccine each beat second-quarter expectations. Less bullishly for Pfizer stock, sales of inflammation drug Xeljanz declined due to ongoing safety concerns.
On a segment basis, sales of rare disease treatments posted the best growth — rising 32%. Sales of drugs called Vyndaqel/Vyndamax soared 81% to $501 million.
Overall, total second-quarter growth lined up with CAN SLIM rules for investing. Investors are encouraged to seek stocks with 20%-25% recent sales and earnings growth.
Big institutional investors — who account for up to 70% of all market trades — usually look for stocks with accelerating earnings and sales growth.
That trend is expected to continue in the third quarter. Analysts polled by FactSet call for adjusted income of $1.08 a share and $22.52 billion in sales, up a respective 50% and 86%.