Jim Cramer Highlights the Woes of Pfizer and the Drug Sector

Pfizer Inc. (NYSE:PFE) is one of the latest stocks on Jim Cramer’s radar. Cramer noted that the company could not perform as its entire industry is going through a tough time. He remarked:

“…We also have a huge number of stocks that are sinking under their own weight, high-quality companies, real companies that are historically cheap and getting cheaper. Consider Pfizer. Yes, plain old, boring Pfizer.

This morning, this high-quality drug company reported earning 87 cents a share. Wall Street was only looking for 63. Higher than expected revenue, too. Clean numbers, solid numbers, yet it didn’t matter. The entire drug sector is so despised, Pfizer finished the session down 1.5%. Darn thing sells for just eight times earnings.”

Photo by Spencer Davis on Unsplash

Pfizer Inc. (NYSE:PFE) manufactures medicines and vaccines across multiple therapeutic areas, including cardiovascular, infectious diseases, oncology, and immunology. The company’s leading brands include Comirnaty, Paxlovid, Eliquis, Prevnar, Ibrance, and Xeljanz. During the October 31 episode, Cramer mentioned the stock and said:

“Now, will Pfizer break out from the $25 level? Oh, it’s been a dull run for this former growth drug stock as shareholders seem to be satisfied with a 7% yield, not much price appreciation. I like growth, but that dividend seems safe, and it’s backed up by cash flow. On Tuesday morning, we’ll find out if Pfizer’s going to be more of a stock and less of a bond equivalent.”

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Disclosure: None. This article is originally published at Insider Monkey.