What is Pfizer
Pfizer Inc. (Pfizer) is a global research-based biopharmaceutical company. The Company is responsible for the discovery, development, manufacture, marketing, sales, and distribution of biopharmaceutical products.
Pfizer is an American multinational pharmaceutical, biotechnology corporation headquartered in Manhattan, New York City. The Company was established in 1849 in New York by two German immigrants, Charles Pfizer and his cousin Charles F. Erhart.
The company's global workflow is based on the making of medicines and vaccines. The Company develops wellness, prevention, treatments, and cures. In the U.S, it sells its vaccines products to the federal government, centers for disease control and prevention (CDC), wholesalers, individual provider offices, retail pharmacies, and integrated delivery networks.
Pfizer is a publicly traded company, making its stock available to anyone of legal age interested in purchasing shares.
What are Pfizer Shares (PFE)
Pfizer shares represent a unit of ownership in Pfizer Inc. – and they are considered to be amongst the most traded financial instruments around the globe. The company received positive feedback on the efficacy of its COVID-19 vaccine, Pfizer this race during the pandemic, causing its share price to jump.
Pfizer shares will rise and fall in value according to how well the company is performing at a given moment in time. Better-than-expected earnings will make Pfizer share prices rise, while weaker earnings will make share prices fall. However, there are many reasons why a company's share price can change.
People trade Pfizer shares because, just like other financial instruments, they can be an opportunity to invest money. At a basic level, you can take a position on Pfizer shares to get exposure to economic growth. If an economy is in good shape, you might find that companies operating in that specific economic branch or industry will grow too.
Company growth is correlated with share price increases, which is what people are hoping for when they buy Pfizer shares.
Pfizer is a blue-chip stock, which means it is a safe investment from a firm with a proven record of accomplishment of profitability and stability. Pfizer also pays dividends ($0.39 in 2021), which means that if the company does well, investors will receive money every quarter for as long as they own their shares. These dividends make Pfizer particularly interesting to someone wishing to implement a buy-and-hold investment strategy — you may retain Pfizer shares for an extended period, allowing the value to rise while still receiving income.
Pfizer stock is traded on the Nasdaq stock exchange under the PFE ticker.
If all that makes you want in on Pfizer’s biopharmaceutical growth, here is everything you need to know to buy Pfizer stock & shares to invest in PFE.
How to Buy Pfizer Shares
Learning how to buy shares may not sound complicated, but you will need to do some research — and learn the basics — before making your first investment.
- Learn the difference between investing and trading
- Review Pfizer’s performance and outlook 2022
- Understand the risks and charges
- Access the trading platform and place your orders
- Stay up to date with the latest news and rumors about Pfizer
1. Learn the difference between investing and trading
People have two options to buy shares of stock online. Firstly, they can buy shares in companies on the exchanges where they are listed. For instance, you can buy Pfizer stock on the NASDAQ exchange, so you own a share in the company (investor). Alternatively, they can buy Pfizer shares without owning them, speculating on the price of the underlying asset (trader).
Investing and trading are similar terms that some people will sometimes use interchangeably – but there are significant differences for you to be aware of.
Investing in Pfizer Stock
Investors buy Pfizer shares hoping their price will rise and they can sell them later for a profit, adhering to the basic principle of buying low and selling high. Investors will take positions over a longer period, attempting to profit from share price changes as well as dividend payments.
While this means that they might need more initial capital to get started when compared to trading, their losses would be capped at this initial price tag. That said, investors should be aware they might get back fewer returns than they initially invested.
Investors will buy Pfizer shares to:
- Make a profit from the Pfizer share price rising
- Receive an income from dividends if the company pays them
- Benefit from the effects of compounding
This last point requires investors to hold onto their shares for an extended period. That’s why you’ll sometimes hear the phrase ”time in the markets is better than timing the markets” when talking about share investments.
>> Learn how to invest in stocks
Pfizer (or any single stock, for that matter) can be a very volatile investment. You can lower the risk by diversifying your investment holdings.
An index fund is a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index, such as the Standard & Poor's 500 Index (S&P 500). An index mutual fund provides a broad market exposure, low operating expenses, and low portfolio turnover. These funds follow their benchmark index regardless of the state of the markets.
PFE currently makes up about 0.6% of the S&P 500, meaning 0.6% of each dollar you invest in an S&P 500 index fund goes to Pfizer. Pfizer's index membership is Russell 1000, S&P 500 Healthcare Sector, Russell 3000 and S&P 100.
Pharmaceutical exchange-traded funds (ETFs) provide exposure to the performance of companies within the global pharmaceutical industry.
PFE makes up 18.80% of IHE (iShares U.S. Pharmaceuticals ETF), 7.67% of FTXH (First Trust Nasdaq Pharmaceuticals ETF ), 6.40% of IEIH (iShares Evolved U.S. Innovative Healthcare ETF), 4.80% of XLV (Health Care Select Sector SPDR Fund).
>> Learn what ETFs are and how do they work
Trading Pfizer CFDs
On the other hand, traders might seek to capitalize on short-term share price gains. Rather than investing in the shares, traders speculate on the shares’ value. They can speculate on it rising by going long, as well as falling by going short.
Trading Pfizer stock means that you are speculating on a share’s price movements with derivatives like CFDs. In other words, you are purchasing Pfizer shares without taking direct ownership.
Leverage is available when you use this product, giving you full market exposure for an initial deposit – known as margin – to open your position.
For example, a trader who wanted to buy 100 Pfizer shares CFD at $42.80 per share would only require $856 of trading capital, thereby leaving the remaining $3,424 available for additional trades.
But keep in mind that leverage can increase both your profits and your losses as they will be based on the full exposure of the trade, not just the margin requirement needed to open it. This means losses, as well as profits, could far exceed your margin.
With CFDs, you can ‘buy’ (go long) the shares if you think the Pfizer stock’s price will rise, or you can ‘sell’ (go short) if you think the Pfizer stock’s price will fall.
>> Learn what is CFD trading and how it works
Going Long Pfizer CFD
Pfizer has a sell price of $42.76 and a buy price of $42.80.
Pfizer’s next earnings announcement is fast approaching, and you expect it to be good news.
You think the company’s share price will go up, so you buy 200 Pfizer CFDs at $42.80 This is the equivalent of buying 200 Pfizer shares.
Because in CFD trading you can use leverage, you do not need to put up the full value of Pfizer shares. Instead, you only need to cover the margin, which is calculated by multiplying your exposure with the margin factor for the market you are trading.
So, if Pfizer has a margin factor of 20%, your margin would be 20% of the total exposure of your trade (200 share CFDs x $42.80 = $8.560), which is $1.712.
If your prediction is correct:
When Pfizer announces its results, it is clear the company had a successful quarter, pushing COVID – 19 vaccine worldwide – and as you had predicted, its share price climbs.
You decide to close your position when it reaches $50, with a buy price of $50.20 and a selling price of $5000
You reverse your trade to close a position, so you sell your 200 CFDs for $50
To calculate your profit, you multiply the difference between the closing price and the opening price of your position by its size. $50– $42.80 = $7.2, which you multiply by 200 CFDs to get a profit of $1.440.
If your prediction is wrong:
Pfizer’s results are worse than expected, and its share price immediately falls. You decide to cut your losses and sell your 2000 CFDs at $40.
Your position has moved $2.80 against you, meaning you suffer a loss of $560.
Going Short Pfizer CFD
Shorting with derivatives can be an effective way to protect your investments against downward price movements in your non-leveraged investment portfolio. Also, it can be a way to generate profits outright from shares that are falling in value. But when you go short, your potential losses are theoretically uncapped because there is no limit on how high a company’s share price can rise.
Here is an example:
Suppose Pfizer shares are currently trading with a selling price of $50, and you think the price will go down. So, you decide to open a short CFD position on 100 Pfizer shares CFD. A week later, the buy price reaches $35, and you close your position. This means you made $1500 in profit ([50 - 35] x 100 = $1500), excluding additional costs.
If the price rises, you register a loss. For example, if Pfizer shares rose to a price of $55, you would suffer a $500 loss instead, excluding additional costs.
When you create a trading account with CAPEX, you will be able to:
- ‘Buy’ (go long) or ‘sell’ (go short) Pfizer and other 2,000 international shares to speculate on their price rising or falling
- Take a position on our range of ETFs to get exposure to a basket of shares from an entire country, index or sector that could be rising or falling in price.
- Trade a host of global indices – including the S&P 500, the famous technology index NASDAQ 100, the Dow Jones Industrial Average (Wall Street), and the DAX (Germany 40) – to go long or short on the performance of an entire economy with a single trade.
- Use QuantX, the smart portfolio builder that helps you cover the popular industries and only invest in the top-performing stocks.
2. Review Pfizer’s Performance and Outlook 2022
Before buying Pfizer stock—or any stock (see our guide on how to buy shares)—it’s wise to do some research into the company’s financials, performance, and outlook. The easiest place to get started is through a company’s annual reports and quarterly reports. Public companies like PFE are required to publicize detailed information about their financial health in these.
You can find these on Pfizer’s investor relations site or by searching the Securities and Exchange Commission’s (SEC) database.
You may also turn to experts for their input. Brokerage companies frequently release commentary on major stocks and industries, and third-party evaluators like Trading Central provide comprehensive technical and fundamental analysis.
When you combine financial data with expert insight, you will be able to decide how much of your money you want to put into Pfizer stock.
Pfizer Shares Forecast - Fundamental
Before you load up the trunk with Pfizer shares, pop opens the hood and see what you are really getting into. Remember, when you buy Pfizer stock, you are purchasing a small portion of an actual business:
Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide.
Pfizer's balance sheet, income statement, competition, and management (all explained in our guide on how to research stocks) will help you give the company a good once-over.
You can access research, analyst ratings, and other key information about Pfizer via your brokerage account or a financial information website. If you like what you see, your next step is to consider whether Pfizer fits into your current investment portfolio.
- Pfizer's market capitalization is $244.7 B
- Pfizer's upward move is 25.6% in 1 year
- Earnings per share (EPS) were up 86.3% over the last year and are forecast to decline by 1.8% per year for the next 3 years.
Pfizer raised the high end of its full-year 2021 earnings guidance from $3.65 to $4.05 per share. The company’s growth products, excluding the COVID vaccine, are growing at an impressive 41% annualized.
The price-to-earnings ratio (PER) is 20,7. Fair value according to valuation is around 99.1$ which means Pfizer stock is 54.5% undervalued.
*Last update: November 2021. Source: Yahoo Finance
The next Pfizer dividend payment date is on 2021-12-06 when Pfizer shareholders who owned PFE shares before 2021-11-04 will receive a dividend payment of $0.3900.
*Last update: November 2021. Source: Nasdaq
Pfizer Shares Forecast - Technical
Technical traders analyze price charts to attempt to predict price movement. The two primary variables for technical analysis are the time frames considered and the technical indicators that a trader chooses to utilize.
Our web-trading platform, for example, offers 6 chart types (including the famous Japanese candlestick chart) to help you analyze price performance across different timeframes. It also enables you to deal in an instant – directly from the charts. You will be able to open, close and edit positions in just a couple of clicks.
Trading charts always feature distinct patterns that technical analysts can use to interpret the behavior of buyers and sellers. These chart patterns can give traders an indication of where the market could go next. As you will notice when you look at a chart, the market will usually move in one overall direction or trend. There are three types of market trends: uptrends, downtrends, and sideways trends.
From a technical perspective, the Weekly Pfizer price chart shows a sideways movement (long term), while the daily chart (medium-term) shows an uptrend after breaking up the resistance around 41.30.
The rising channel and RSI signals a more likely continuation of the bullish pattern and the next targets will be the highs of August at 51.75 and the upper line of the channel.
Pfizer stock has taken off strongly to the upside after a long-term consolidation, driven by the Covid 19 vaccine expectations. The rally was followed by a 38.2 Fibonacci retracement to the previous high ($42) that keeps the intermediate trend intact.
The medium-term target (2022) is a 5th Elliott Wave above the previous highs up to 60$ per share.
To buy Pfizer shares or not?
It is recommended to watch for stocks in the major long-term support area. We should buy Pfizer shares at relatively cheap prices (compared to historical values), not expensive prices. Also, have an exit plan for how you will exit a profitable trade. Define how and why you will exit. Since we used to support to get into the trade, you may consider exiting just below a long-term resistance level.
If buying at support, and planning to exit just below resistance, the upside potential should outweigh the downside risk by at least 2:1 or even 3:1. That means that if you buy Pfizer shares at $45, you should be reasonably able to get out of the stock at $40 or higher. In an absolute worst case you lose $10 a share, but based on the historical chart it is quite feasible to go up to $20/share or more. This is known as the risk/reward ratio, a key indicator when deciding to buy Pfizer shares or not.
With CAPEX WebTrader, you can perform an in-depth analysis of the charts with 90 indicators (including moving average, MACD, RSI, and Bollinger Bands). The platform also supports an interactive trading activity with high-end research tools helping you interpret market data.
3. Understand the risks and charges
Trading can be seen as riskier than investing due to leverage. But investing also carries a risk – and there is no guarantee that your investments would increase in value, so you could receive back less than you initially invested.
Before deciding to trade in shares, you should take steps to manage your risk. We have courses at CAPEX Academy that take you through risk management and how to mitigate your exposure to risk in the financial markets.
Our costs and charges for trading vary depending on the product that you use to take a position.
Pfizer (PFE) CFD Trading Conditions
|SPREAD PER UNIT||0.07 pips||LEVERAGE||1:5|
|OVERNIGHT ROLLOVER - LONG||-0.0076 %||OVERNIGHT ROLLOVER - SHORT||-0.0063 %|
|INITIAL MARGIN||20.0000 %||MAINTENANCE MARGIN||10.0000 %|
- Spread represents the difference between ASK price and BID price.
- Future Rollover adjustment consists of the difference in price between expiring contract and new contract as well as the spread of the CFD.
- Swap is the amount credited to or debited from an account where positions are held overnight.
- Inactivity fee represents the monthly amount deducted if no activity is recorded for 12 months in an account.
4. Access the trading platform and place your orders
To buy Pfizer shares CFD with CAPEX Webtrader is very easy and intuitive. Opening an online trading account is as easy as setting up a bank account. Here are the steps:
Open an account or log in
First, create an account or log in on capex.com. To open an account, click the "Register" button and complete your details.
Once the platform is accessed, the registration process must be completed in order to operate with real money. Click "Complete the Registration and Start Trading".
To log in, from the CAPEX website, click on "Login".
Deposit funds into your account
To trade with a live account, it is necessary to deposit funds. This is done from the platform itself by clicking on the "Add funds" button:
Also, it is possible to trade on a risk-free demo account with a balance of € 50,000, which is ideal for getting to know the platform and testing trading strategies.
CAPEX offers you different payment methods: debit cards, credit cards, bank transfer, skrill, and more.
It is noteworthy that CAPEX does not charge any fees or commissions for depositing funds.
Look for Pfizer shares
To view Pfizer shares (PFE) real-time price and chart on the trading platform can click on the "Search" icon located in the left panel or by clicking on "Shares" and then select the instrument, in this case, Pfizer.
Use the indicators and drawings to analyze the chart
Click the indicators icon and select your favorite ones. There are trend-following, oscillators, volatility, and support/resistance indicators available. To learn how many indicators to use and how to combine then visit the Technical Indicators section in CAPEX Academy.
Set up the order to buy Pfizer shares
To buy Pfizer shares CFD, click on the "Buy" button and a window is displayed to configure the purchase order:
The number of Pfizer shares to be purchased must be entered and it is allowed to set up a Stop Loss to limit the potential loss, and/or a Take Profit to close a profitable position once the Pfizer stock reaches a specific price. These orders can be configured based on price, pips, cash value, or percentage.
To proceed with the purchase, click on "Place Order".
However, PFE trading does not end here. You will want to check out the next step to make sure you are investing your money as well as you can.
Why Trade Pfizer with CAPEX?
- Advanced AI technology at its core: Whether they prefer the web-based and mobile-ready WebTrader or favor the highly popular MetaTrader 5, we make sure investors make effective use of fast and reliable trade execution speeds, complex order and risk management tools, advanced charting options, powerful research tools in collaboration with highly-regarded platforms such as Trading Central or TipRanks.
- Trading on margin: Providing trading on margin (up to 5:1 for individual equities), CAPEX gives you access to the stock market with the help of CFDs.
- Trading the difference: When trading Pfizer CFD, you do not buy the underlying asset itself, meaning you are not tied to it. You only speculate on the rise or fall of the Pfizer stock price. Online trading with CFDs is nothing different from traditional trading in terms of strategies. A CFD investor can go short or long, set stop loss, take profit, and apply trading scenarios aligned with their objectives.
- All-round trading analysis: The browser-based platform allows traders to shape their market analysis and forecasts with sleek technical indicators. CAPEX provides live market updates and various chart formats, available on desktop, iOS, and Android.
- Focus on safety: CAPEX puts a special emphasis on safety:
- capex.com is a website operated by KW Investments Limited, which is authorized and regulated by the Seychelles Financial Services Authority, license number SD020.
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- Global partnerships: CAPEX is proud to be the Proud Sponsor of Juventus, one of the most prestigious football clubs in the world, a football club that has a special place in the hearts of the people of Italy, with a strong legacy and a dedicated community.
5. Stay up to date with the latest news and rumors about Pfizer (PFE)
Get the latest Pfizer Inc. (PFE) stock news and headlines to help you in your trading and investing decisions.
History of Pfizer
Pfizer Found Success During World War II - Founded in 1849 by Charles Pfizer and Charles F. Erhart who were both German emigrants, the company was started in, Brooklyn, New York, and still has its headquarters in the same city. The company found its first big success after producing penicillin when the drug suffered a shortage during World War II.
High Market Cap, Low Share Value - Although Pfizer is a highly valued company at — $196.6 billion.
Pfizer Revenue Increased 2% in 2020 - Even after making a successful COVID-19 vaccine, Pfizer made $41.9 billion in 2020; which is an increase of only 2% from its 2019 revenue.
The Company Is Expected to Make Profit this Year - Although 2020 was a starting year for the company in times of the pandemic, 2021 is expected by experts to be the year the company will collect the benefits.
An analysis by Quartz expects Pfizer’s vaccine revenue this year to be at $15 billion, whereas Morgan Stanley are expecting $19 billion in profits instead.
Plus, as the world continues to get vaccinated, another $9.3 billion is expected to be made in 2022 and 2023 from vaccine sales.
Vaccine Prices Could Be Increasing - Pfizer’s latest deal with the U.S. government is to deliver 200 million doses of the company's COVID-19 vaccine — an amount enough to vaccinate 100 million people at no cost to them.
Besides BioNTech, Pfizer (PFE) is the only company with a fully approved vaccine in the U.S. Pfizer's COVID-19 vaccine brought in $7.8 billion in sales.
Pfizer shares have a Composite Rating of 83. The measure weighs a stock's key growth metrics against all other stocks.
Pfizer stock also has a Relative Strength Rating of 75 out of a best-possible 99. The RS Rating measures a stock's 12-month running performance against all other stocks.
That RS Rating means Pfizer stock tops three-quarters of all stocks in terms of performance.
The pharmaceutical company's EPS Rating, a measure of profitability, is a 72 out of a best-possible 99. The EPS Rating compares a stock's recent and longer-term earnings growth against all other stocks.
*Last Update: November 2021. Source: Wikipedia