Pfizer is one of the world’s leading pharmaceutical corporations, and its brand recognition has risen in recent years due to the introduction of its COVID-19 vaccine.
Buying Pfizer stock in 2022 appears to be an excellent opportunity to invest. The company’s coronavirus vaccination program generates billions of dollars in sales. It has a robust late-stage pipeline and a portfolio of non-coronavirus blockbusters.
Again, the shares appear cheap, and as such, investing in this pharmacy business will provide you with dividends as a form of passive income.
This article goes on to inform and advise you Pfizer stock and ho to buy it. Carefully read through.
About Pfizer Stocks
Pfizer is no stranger to the spotlight, its stock is held in dozens of healthcare, pharmaceutical, dividend index funds and ETFs.
The firm received renewed interest in December 2020, when the US Food and Drug Administration granted emergency use authorization to its COVID-19 vaccine (produced in collaboration with German biotech company BioNTech).
Pfizer’s stock price soared in response to the news, and despite a subsequent correction, the stock remained higher than before the vaccination announcement.
Are the good times over for Pfizer (PFE 0.16%) investors? It might seem that way. The stock soared 60% last year. However, so far in 2022, Pfizer’s share price has dropped close to 20%.
Pfizer And The Coronavirus Business
In many regions of the world, Pfizer is the dominant vaccine manufacturer. According to the corporation, more than 118 million people have been properly vaccinated in the United States.
However, the Pfizer vaccination is far more prevalent in other countries. According to the firm, 75 percent of its vaccination sales are outside the United States.
The European Union recently exercised an option to distribute extra Pfizer vaccinations, raising the total number of Pfizer doses to be delivered this year to almost 650 million. The whole agreement, which was inked this spring, calls for up to 1.8 billion doses to be delivered to the region by 2023.
Pfizer provided guidance in its fourth-quarter update of $22 billion in Paxlovid sales this year. If the company makes 120 million courses, that puts the average price per course at around $183. But that figure is much lower than the $530 per course that Pfizer has received from the U.S. government.
If Pfizer’s spectacular performance has piqued your interest, here’s how to purchase Pfizer shares.
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How to Invest in Pfizer (PFE) Stock
Here’s how to invest in Pfizer stock:
1. Carry out your homework
You should do some research before you start buying Pfizer stock. The purpose is to gain a better understanding of the company’s financial performance, organizational structure, plans, and competitive threats.
Pfizer’s annual and quarterly reports are available on its investor relations website or the Securities and Exchange Commission (SEC) database.
Pfizer reported $81.3 billion in full-year revenue in 2021. Pfizer has a bright future, according to Mike Clulow, a chartered financial analyst (CFA) and portfolio manager of EFG-Capital.
2. Select a Brokerage Firm
You’ll need to open a brokerage account to purchase Pfizer stock. A broker links you and the stock market, allowing you to buy and sell securities such as stocks and bonds.
If you don’t already have a brokerage account, seek one that charges no commissions and has low investment minimums. Are you unsure where to begin your search? Our top selections for the best online brokers are listed below.
3. Select a user account
Most brokerages offer a variety of account types, and you should select the one that best suits your financial objectives.
Its best you choose an individual Retirement Account (IRA), such as a regular IRA, Roth IRA, or SEP IRA, to save for retirement.
Once you reach the age of 59, depending on the type of IRA you have, you may be entitled to tax deductions or tax-free withdrawals.
Suppose you want to invest in order to increase your money but don’t have a specific goal in mind or don’t want to worry about withdrawal penalties. In that case, you could open a taxable investment account as an alternative. There are no tax advantages, but you are not restricted in how you spend the funds.
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4. Determine how much money you have to invest.
Consider how much money you can afford to invest in Pfizer stock once you establish a brokerage account. Consider the following factors when selecting how much to invest:
- Take care of your budget first
After you’ve paid your bills, make sure you have money set aside for retirement and an emergency fund. Then, when you’ve taken care of these three items, figure out how much money you have left over to invest in companies like Pfizer.
- Think about your investing strategy
When you’ve decided to acquire Pfizer stock, you must determine whether to buy in a flat payment or employ dollar-cost averaging. If you believe a stock’s price is meager, some people favor lump sum investment. However, dollar-cost averaging allows you to buy shares regularly and perhaps minimize your risk.
- How would Pfizer fit in your overall portfolio?
Consider your objectives and the rest of your portfolio before investing in particular stocks. Putting too much of your portfolio in one firm might be problematic; for most people, it’s better to have a diverse portfolio of assets.
5. Place an Order for Pfizer
It’s time to acquire Pfizer stock after selecting how much to invest. Log on to your brokerage account and enter PFE—Pfizer’s stock symbol—plus the number of shares you want to purchase.
Enter the dollar amount you want to invest in Pfizer if your platform permits you to buy fractional shares.
When purchasing stock, you can use either a limit order or a market order, the two most prevalent order types.
Limit orders are only processed once the stock hits a specified price, but market orders are filled immediately at the current price. If you expect the price to change, a limit order can be a good choice.
Pfizer is traded on the New York Stock Exchange (NYSE), the world’s largest stock exchange.
Note: Its trading hours are 9:30 a.m. to 4:00 p.m. EST Monday through Friday; however, most brokerage platforms offer after-hours trading.
How To Sell Pfizer Stock
You’ll want to sell your Pfizer stock at some point. To make it easier, here’s how to go about it:
- Go into your brokerage account.
- Input the quantity of shares you wish to sell as well as Pfizer’s ticker symbol.
- Sell at the current price or a minimum sales price.
If the value of your investment has increased significantly, you should speak with a tax specialist, such as a certified public accountant (CPA), before selling your shares.
Capital gains taxes are incurred when you sell at a profit, so a CPA can walk you through your alternatives and help you minimize your taxes.
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How To Invest In Pfizer Through Mutual Funds And ETFs
Pfizer is a large pharmaceutical corporation with a long history. However, this does not guarantee that Pfizer will continue to do well. Pfizer, like any other publicly traded firm, faces competition and market constraints that could jeopardize its long-term success.
“Pfizer has been one of those pandemic winners and could be a victim of its success,” Clulow added. “With the business on track to produce a billion vaccine doses every quarter in 2022, maintaining this speed in 2023 and beyond will be near-impossible.”
Will investors be able to wait much longer? That is the question.” Diversifying your portfolio is a good idea instead of investing in just one company.
While you can acquire individual shares of various firms and invest independently, mutual funds and exchange-traded funds (ETFs) may be a better option.
These funds invest in dozens, if not hundreds, of firms all at once, providing quick diversification. Pfizer is one of the companies that many people own.
What’s Pfizer’s Future Potential?
It may be tempting to buy Pfizer stock based on recent headlines, but the reality is that the stock price you’re paying now may already reflect Pfizer’s potential success. In other words, as a retail investor, you’re up against institutional investors who have the resources of an army to unearth the kinds of things that influence stock values long before you do. As a result, it’s better to avoid investing purely on the basis of a company’s historical success or current pricing.
To get started, you need to do due diligence over Pfizer’s financial statements, revenue, earnings, projected performance and dozens of other variables to determine whether Pfizer is a sound investment.
The bottom line is that Pfizer is a tremendously successful firm that has the potential to develop steadily for many years. And its stock is trading at an attractive price that may be even better than the numbers suggest. That is the type of stock to buy on a dip.
- fool.com – 120 Million Reasons to Buy Pfizer Stock on the Dip
- investors.com – Is Pfizer Stock A Buy After Spending $525 Million To Bolster Its RSV Efforts?
- forbes.com – Does The Current Dip In Pfizer Stock Offer A Buying Opportunity?
- nerdwallet.com – Want to Buy Pfizer Stock? Here’s What You Should Know