Jim Cramer reviewed Pfizer Inc. (NYSE:PFE) while breaking down 16 stocks for a market facing higher energy costs and economic uncertainty. Cramer mentioned the stock during the episode and said:
In a slowdown, the hedge fund playbook says you want safety stocks. The stocks of companies that will make good money even if the broader economy deteriorates dramatically, the opposite of cyclical stocks. For example, big pharma. Now, if you need a medication, you’ll keep taking it in good times and bad. You don’t skip a dose. This is textbook recession-proof… And within big pharma, Lang likes Pfizer, Merck, and Bristol-Myers, three stocks with strong dividend yields that are seeing substantial institutional buying right now. I like all three, by the way. Let’s start with the daily chart of Pfizer, right, which Lang says is his favorite in the group.
Lately, he points out that Pfizer has had strong volume trends, meaning the stock tends to rally on high volume… By the way, when it declines, it’s usually on lower volume… For technicians, volume is like a polygraph… High volume on up days and lower volume on down days mean you’ve got an honest uptrend on your hands. Pfizer also has made a series of higher highs and higher lows… But this is textbook. It’s exactly how you want to see it. The stock remains above its 50-day moving average…
These are all bullish readings. Plus, the stock’s made a bullish cup and handle… This is one of the most reliably positive formations out there. Very encouraging… Take a look at the Chaikin Money Flow. Alright, this is an indicator that shows you whether big institutions are buying or selling. It spent most of this year in bullish territory, which tells us that institutional money managers are eagerly buying Pfizer here. At the same time, Lang likes that Pfizer pays you a bountiful 6.3% dividend yield. Now, I’m debating talking about Pfizer at our club meeting… but everything says fine. I just need to know their product flow better.
Photo by Spencer Davis on Unsplash
Pfizer Inc. (NYSE:PFE) develops and sells medicines and vaccines for several health conditions, including heart disease, infections, COVID-19, and rare diseases. The company was part of our list of the best undervalued stocks under $50 to invest in. You can read more here.
While we acknowledge the risk and potential of PFE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PFE and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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