3 Terrible Reasons to Sell Pfizer Stock
The underlying reason is that the drugmaker's shares have dramatically lagged behind the high-flying pharmaceutical industry during the past decade (and for good reason). However, Pfizer's stock has started to show some signs of life this year, gaining a healthy 12% year to date. While some long-suffering shareholders might be tempted to sell following this spike, the usually cited reasons for doubting this big pharma stock appear to be starting to lose credibility. So, with this theme in mind, here is a look at three terrible reasons to sell Pfizer's stock right now. Pfizer seems to be building a firewall against Lyrica's upcoming patent expiration with this product rehousing. Pfizer has been at the epicenter of the politically charged drug pricing debate in the United States, thanks to its regular price hikes on older medicines and its top dog position in the pharmaceutical space. As a result, President Trump specifically targeted Pfizer earlier this year in his criticism of the industry's widespread practice of raising drug prices well above the rate of inflation every year. Read's laser-like focus on the bottom line has arguably come at the expense of the drugmaker's top line. As proof, Wall Street is forecasting Pfizer's revenue to rise at a rather modest 2% compound annual growth rate over the next six years, which is one of the slowest growth rates among large-cap drugmakers. And that's a big reason why Pfizer's stock has been stuck in a rut for the better part of a decade.