5 Growth Stocks To Buy That Are Too Cheap To Ignore

2. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 70

Pfizer Inc. (NYSE:PFE) is one of the largest pharmaceutical firms in the world. It manufactures and sells a variety of different medicines for heart, neurological, mental health, viral, and other illnesses. The firm is headquartered in New York, New York, United States.

Pfizer Inc. (NYSE:PFE) is trading at a P/E ratio of 9.18, which is significantly lower than the health care sector’s average of 16. The company has also started to reverse its share price losses, and over the past month, the shares are up by a respectable 7%. Additionally, Pfizer Inc. (NYSE:PFE) has a three year annualized revenue growth of a whopping 95% which is more than five times the sector average growth of 13%, and the firm’s return on invested capital (ROIC) exceeds its cost of capital by a strong 17%, allowing it to generate hefty returns.

Pfizer Inc. (NYSE:PFE) pays a 40 cent dividend for a 3.41% yield. Insider Monkey’s Q2 2022 survey of 895 hedge funds outlined that 70 had held a stake in the company.

Pfizer Inc. (NYSE:PFE)’s largest investor is Cliff Asness’ AQR Capital Management which owns 10 million shares that are worth $553 million.

Diamond Hill Capital mentioned the company in its Q3 2022 investor letter. Here is what the fund said:

“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”