Pfizer’s 7% yield and low valuation fail to offset declines in key drugs and patent risks, says CNBC’s Jim Cramer.
Jim Cramer declined to recommend Pfizer (PFE) despite its 7% dividend yield and near 52-week low valuation. He cited a 59% drop in Comirnaty sales and a 63% decline in Paxlovid revenue as evidence of missing growth drivers.
Pfizer’s forward P/E of 8x reflects broader market concerns, including patent cliffs for Eliquis and Vyndaqel, Medicare pricing pressure from the IRA, and potential MFN drug pricing risks. The stock’s yield and low valuation were insufficient to overcome these headwinds.
Cramer’s decision underscores skepticism about Pfizer’s near-term recovery, even as he acknowledged the stock’s income appeal. The company’s exclusion from a recent AI stock list further highlights investor caution.