Should I buy Pfizer stock in 2025? South Africa Analysis

What is Pfizer?

How much is the Pfizer stock?

The price of Pfizer stock is rising this week. Currently, the PFE share trades at $23.45, up by $0.27 (+1.16%) over 24 hours, though it has slipped 1.78% over the past five days. Pfizer’s market cap stands at $133.32 billion, with an average three-month trading volume of around 53.76 million shares.

A P/E ratio of 16.99 and a notable dividend yield of 7.33%, combined with a low stock beta of 0.50—indicating limited volatility—may attract South African investors looking for robust income in global pharma.

Our full analysis of the Pfizer stock

After a comprehensive review of Pfizer’s most recent financial results and a detailed assessment of its share price performance over the past three years, our multi-factor analysis—leveraging proprietary algorithms that integrate financial metrics, technical signals, real-time market data, and peer comparisons—provides a robust foundation for evaluating the stock. Against the evolving backdrop of global pharmaceutical innovation and sector rotation trends, investors may wonder: Why could Pfizer stock once again represent a strategic entry point into the global healthcare sector in 2025?

Recent Performance and Market Context

Pfizer Inc. (NYSE: PFE), a global pharmaceutical powerhouse, is now trading at $23.45 as of 30 May 2025. The stock remains near the lower end of its 52-week range of $20.92 to $31.54, reflecting a drawdown that has been shaped primarily by the post-pandemic recalibration of COVID-related revenues. Despite a year-to-date decline of -11.61% and a -15.71% pullback over the trailing 12 months, a closer look at 2025 year-to-date developments reveals significant strengths under the surface.

In May, Pfizer announced strategic licensing and partnership agreements, notably a $6 billion licensing deal with 3SBio to expand its cancer drugs portfolio and a collaboration with Summit Therapeutics to co-develop next-generation antibody-drug conjugates. In parallel, the acquisition of NextWave Pharmaceuticals ($255 million) and intensified R&D focus on obesity treatments signal a pivot toward high-growth therapeutic areas—concrete steps designed to reinvigorate the pipeline and add future revenue streams.

The macroeconomic context remains distinctly favourable for global healthcare assets. The US pharmaceutical sector is expected to grow at 8.8% per year, with global demand for innovative therapies—especially in oncology, metabolic diseases, and immunology—remaining structurally robust. For South African investors specifically, exposure to US-based healthcare giants offers diversification benefits and a hedge against rand depreciation.

Furthermore, the stock’s generous 7.33% dividend yield underscores its appeal in an environment where global rates remain volatile and investors increasingly value stable income streams from companies with fortress balance sheets.

Technical Analysis

From a technical perspective, Pfizer’s price structure suggests a consolidation phase with emerging bullish undertones. The stock’s 14-day RSI stands at 51.59—near the midpoint and hinting at neither overbought nor oversold conditions—offering the potential for a trend reversal as momentum builds. The MACD indicator (-0.07) and Stochastic (80.18) remain marginally negative, but the ADX at 13.97 carries a buy signal, and the Williams %R at -30.06 indicates growing upside pressure.

The 20-day simple moving average ($23.02) recently flipped into buy territory, while the $23.13 zone serves as a technical anchor—providing significant support that has repeatedly contained prior sell-offs. The next test resides at $23.84, a critical resistance. With consensus technical signals now mixed—but gravitating toward neutral with early bullish divergence—Pfizer appears to be forming a solid base, inviting renewed attention from tactical investors.

Short- and medium-term price momentum will likely be supported by attractive entry points close to major supports, with downside well-cushioned by the stock’s historical floor and reliable dividend yield.

Fundamental Analysis

Even with a temporary step-down in COVID-driven sales, Pfizer’s Q1 2025 results reinforce its resilient earnings power and strategic positioning:

• Revenue: $13.7 billion in Q1 2025 (down 7.8% year-over-year), with the revenue guidance for the full year reaffirmed in the $61–64 billion range, signaling management’s confidence in core operations and an improving non-COVID revenue mix.
• Profitability: Net income of $2.97 billion (-4.9% YoY), with stable margins (22%). Adjusted EPS delivered $0.92—beating analyst expectations by 2.9%—showing strong operational execution.
• Valuation: Pfizer trades on a normalised P/E of just 7.22 and a trailing P/E of 16.99, a notable discount to historical averages and to major peer multiples in global pharma, where leading competitors often command 25x or more in periods of pipeline expansion.
• Balance Sheet: With $17.32 billion in cash, strong free cash flow of $15.05 billion (TTM), and a manageable debt/equity ratio below 70%, the company is well-positioned to fund further innovation and shareholder returns.
• Structural Advantages: Pfizer’s globally diversified revenue mix (~50% international), scale (over 81,000 employees), and status as an innovation leader with a robust portfolio across therapeutics, vaccines, and biopharmaceuticals, confer both operating leverage and resilience.

Notably, the price-to-sales ratio at 2.12x and price-to-book at 1.46x further highlight the attractive entry valuation—especially as the market awaits confirmation of new drivers outside its COVID franchises.

Volume and Liquidity

Pfizer maintains an average daily trading volume of 53.76 million shares, demonstrating exceptional liquidity and deep market sponsorship—essential for investors seeking efficient entry or exit, including those in South Africa trading via US platforms. The public float of 5.67 billion shares provides ample flexibility to accommodate large inflows of capital without introducing destabilizing volatility, supporting dynamic valuations and facilitating institutional participation.

Low short interest (currently under 2%) also confirms that overall sentiment, while cautious, is nowhere near capitulation—an ideal setup for potential upside revision.

Catalysts and Positive Outlook

Pfizer’s strategic outlook is defined by a rare combination of pipeline depth, anticipated regulatory milestones, and aggressive business development. Key catalysts for the coming quarters include:

• Oncology Expansion: Ambition to bring eight oncology blockbusters to market before 2030, buttressed by partnerships and recent acquisitions.
• Obesity Pipeline: All-in R&D focus on anti-obesity assets targeting a notoriously high-growth segment with global prevalence rising.
• Regulatory Milestones: Up to nine phase 3 study readouts and at least four major regulatory events expected in 2025.
• M&A Flexibility: Capacity for up to $15 billion in additional acquisitions, ensuring rapid response to external innovation and market shifts.
• Innovation Leadership: Rising prominence in advanced biologics, next-generation immunotherapies, and a balanced focus on recurring revenue streams.
• ESG Progress: Continued efforts to deliver on environmental, social, and governance expectations—a theme increasingly prioritized by international asset allocators.

Beyond company-specific drivers, the wider US healthcare sector is benefitting from both secular demographic trends and pro-innovation regulatory frameworks, with large-cap pharma positioned as a defensive growth anchor in multi-asset portfolios worldwide.

Investment Strategies

For investors considering portfolio construction in the current environment, Pfizer presents multiple compelling entry strategies:

Short-Term (<6 months)

• Context: Trading near technical support and ahead of several readouts and events; traders may look for a mean reversion rally toward consensus targets around $29–30 (+30% upside).
• Ideal Positioning: Initiation of exposure at or slightly below current $23-level, with tight stops beneath support.

Medium-Term (6–18 months)

• Context: Benefitting from new product launches and M&A announcements, as well as anticipated improvement in core drug sales.
• Ideal Positioning: Accumulate in phases, capitalising on any volatility linked to sector rotation, pipeline updates, and earnings surprises.

Long-Term (12+ months)

• Context: Strong dividend compounding, secular growth in global healthcare, and visible pipeline catalysts through to 2030. The current valuation could mark a multi-year low and a unique buy-and-hold scenario for stable income and capital appreciation.
• Ideal Positioning: Layered accumulation on long-term weakness, reinvesting dividends to leverage compounding potential, with a focus on new product cycles and innovation milestones.

Each time horizon offers a sound rationale for considering Pfizer as a value compounder and a core holding in any globally diversified portfolio.

Is it the Right Time to Buy Pfizer?

In summary, Pfizer’s 2025 investment case is underpinned by several critical strengths:

• Deep and diversified product portfolio spanning major disease areas
• Robust R&D pipeline and clear pivots into high-growth fields such as oncology and obesity
• Strong and defensive balance sheet, delivering generous and sustainable dividends (7.33% yield)
• Attractive valuation multiples well below sectoral averages and historical trends
• Visibility on near-term catalysts—clinical readouts, regulatory events, and potential M&A
• Ample liquidity, strong brand equity, and resilient global market share

While moderate risks remain—including lingering COVID revenue normalization and sector competition—these appear well mitigated by management’s proactive pipeline strategy and prudent capital allocation.

With the stock trading near multi-year technical support, well-capitalised and bristling with optionality, Pfizer seems to represent an excellent opportunity for investors seeking both yield and upside in a rapidly evolving healthcare landscape. As global healthcare continues to demonstrate resilience and renewed sources of growth, the fundamentals justify renewed interest in Pfizer—a blue-chip name poised to enter a new bullish phase as key catalysts unfold in 2025 and beyond.

For investors in South Africa and globally, Pfizer’s current positioning and outlook suggest that now may be an optimal window to evaluate or reinforce exposure—capitalising on both market undervaluation and imminent growth prospects. The path ahead for Pfizer is paved with catalytic events and an attractive risk/reward dynamic, making it a compelling candidate for inclusion in any equity portfolio focused on innovation, income, and long-term sustainability.

How to buy Pfizer stock in ZA?

To buy Pfizer shares as a retail investor in South Africa, the process is straightforward and highly secure when using an authorised, regulated online broker. Investors have two main approaches: you can either buy Pfizer shares directly (spot or "cash" purchasing) and own the stock, or access them via Contracts for Difference (CFDs), which allow you to trade on the share’s price movements without owning it. Both methods are accessible online and can be tailored to your goals and risk profile. For guidance in choosing a suitable provider, a full broker comparison awaits you further down this page.

Spot Buying

Cash purchase of Pfizer stock means you become a shareholder: you acquire actual shares in Pfizer via your broker, who will safeguard them on your behalf. With local platforms, typical fees include a fixed commission per trade (often between R60 and R200 per order), plus a small percentage-based charge.

Example

Pfizer’s current share price is $23.45 (approx. R430 at R18.35/USD). With a $1,000 stake (about R18,350), minus an average brokerage fee of $5, you could buy about 42 shares of Pfizer ($1,000 - $5 = $995; $995 ÷ $23.45 ≈ 42 shares).

✔️ Gain scenario:
If Pfizer’s share price increases by 10%, your holding is now valued at $1,100.
Result: That’s a gross gain of $100 (+10%) on your initial investment.

Trading via CFD

CFD trading allows you to speculate on Pfizer share price movements without physically owning the stock, using leverage. This amplifies potential gains but also increases risks. CFD providers typically charge a spread (the small difference between buy/sell prices) and may add daily overnight financing fees if you hold positions, especially if you use leverage.

Example

With a $1,000 stake (about R18,350) and 5× leverage, you control a $5,000 position.

✔️ Gain scenario:
If Pfizer’s price rises by 8%, your position value increases by 40% (8% × 5).
Result: That’s a potential $400 gain (excluding fees) from an initial $1,000. Remember: leveraged losses are also magnified.

Final Advice

Before investing, carefully compare brokers’ fees, trading platforms, and terms – costs and features vary widely and can affect your overall return. Whether you choose to own real Pfizer shares or trade them via CFDs depends on your investment goals, risk appetite, and trading style. Explore our detailed provider comparison further down the page to find the right fit for your needs.

Our 7 tips for buying Pfizer stock

The latest news about Pfizer

Pfizer maintains a robust presence and product distribution in South Africa, reinforcing its strategic importance in the region. Pfizer South Africa, based in Sandton, acts as a regional hub for Sub-Saharan Africa and maintains a portfolio that directly serves the South African healthcare market, including key therapeutics and vaccines such as those for COVID-19, anti-infectives, and chronic disease treatments. Notably, Pfizer continues to ensure local access to innovative medicines—an essential factor for investors in the region, as ongoing product launches and public-private partnerships underpin further market penetration and resilience against competitive shifts.

Recent licensing and partnership agreements are underpinning a positive pipeline outlook, with local relevance for the oncology and biologics sectors. This week, Pfizer confirmed a $6 billion licensing deal with Chinese biotech firm 3SBio for novel oncology assets and deepened its collaboration with Summit Therapeutics for next-generation antibody-drug conjugates. These moves reinforce the company’s strategic pivot toward high-growth therapeutic areas that are increasingly relevant within the South African pharmaceutical and healthcare environment, where cancer incidence and demand for advanced therapies are steadily rising.

Pfizer’s Q1 2025 adjusted earnings exceeded analyst expectations, demonstrating operational efficiency and supporting its sustained high dividend yield. The company posted an adjusted EPS of $0.92, exceeding street consensus by 2.9%, even as revenues fell marginally short. This operational strength, paired with a 7.33% dividend yield, remains attractive to institutional investors in South Africa seeking stability and income, especially amid ongoing volatility in global markets and local currency depreciation pressures.

Pfizer’s ongoing R&D and innovation push—particularly on obesity and novel therapies—offers medium- to long-term catalysts for growth and local relevance. The current focus on developing blockbuster obesity drugs and ambitious pipeline expansion aligns with health priorities in rapidly urbanising South African populations. With at least four regulatory milestones and up to nine Phase 3 readouts due in 2025, the innovation drive positions Pfizer to address both global and South African demand for cutting-edge treatments in chronic and lifestyle diseases.

The consensus among analysts points to an attractive upside potential for the stock, sustained by strategic execution and sector resilience. Despite a challenging year-over-year price evolution (-15.7% Y/Y), analyst consensus price targets imply almost 28% upside from current levels, distributing a “Hold” recommendation but with clear re-rating potential as the company delivers on its advanced product pipeline. For South African institutional and private investors, this presents an opportunity to access a globally diversified healthcare major with direct local market exposure and solid fundamentals.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.