Is Pfizer Inc. (PFE) Destined for Greatness?

Palboclib, a treatment for breast cancer, which Pfizer licenses from Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) recently received breakthrough therapy designation status from the Food and Drug Administration this year.  On the other hand, Pfizer’s new chronic myeloid leukemia drug Bosulif has been rejected by the U.K.’s cost agency National Institute for Health and Clinical Excellence. You win some, you lose some.

Pfizer Inc. (NYSE:PFE)’s most notable recent move was the spinoff of Zoetis Inc (NYSE:ZTS), its former animal-health subsidiary, earlier this year. Zoetis Inc (NYSE:ZTS) has lost a bit of steam since it hit the market earlier this year, underperforming its former corporate parent since February. However, interest was high enough in a recent exchange of Pfizer shares for Zoetis shares that the program was oversubscribed, and only about a quarter of the nearly 1.7 billion shares tendered were accepted for the transfer. That indicates a bit less excitement in Pfizer’s future than its recent share performance might suggest — roughly a quarter of Pfizer’s entire float was tendered for the exchange.

Pfizer’s board also authorized a new $10 billion share-repurchase program this past week. This new buyback, plus the remaining $3.9 billion from the existing buyback plan, adds up to nearly 7% of the company’s current market cap. Over the past few years, Pfizer has embarked upon four different repurchase programs worth roughly $39 billion, including the latest authorization. Pfizer also plans to retire around $11.4 billion in shares with its Zoetis Inc (NYSE:ZTS) spinoff. That adds up to a pretty hefty nudge on EPS, but with shares moving toward all-time highs last reached during the dot-com bubble, investors should wonder if all these buybacks are really the best use of Pfizer’s hoard.

Putting the pieces together
Today, Pfizer Inc. (NYSE:PFE) has many of the qualities that make up a great stock, but no stock is truly perfect. Digging deeper can help you uncover the answers you need to make a great buy — or to stay away from a stock that’s going nowhere.

The article Is Pfizer Destined for Greatness? originally appeared on Fool.com and is written by Alex Planes.

Fool contributor Alex Planes has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.