Pfizer (PFE) stock is lingering just above its 50-day line after the company beat first-quarter sales expectations, thanks to a one-time benefit for Covid drug Paxlovid.

During the March quarter, the U.S. government handed back 5.1 million courses of Paxlovid, boosting sales by $771 million. Excluding that, Paxlovid still beat sales forecasts. Notably, revenue from the firm’s cardiomyopathy treatment, Vyndaqel, also came in above expectations. Though migraine drug Nurtec widely missed the Street’s projection. The company also raised its sales outlook for the year.

Meanwhile, Pfizer is tacking on new drug approvals.

The Food and Drug Administration just signed off on Tivdak, an antibody drug conjugate for patients with recurrent or metastatic cervical cancer. Pfizer bought Tivdak in its acquisition of Seagen. Antibody drug conjugates, or ADCs, send toxic chemicals directly to cancer cells.

U.S. regulators also approved Pfizer’s gene therapy for hemophilia B, Beqvez. It will cost $3.5 million for a one-time treatment. And European regulators gave Pfizer the nod for Emblaveo, a treatment for some bacterial infections that resist other drugs.

The company also recently said its respiratory syncytial virus vaccine, Abrysvo, proved effective against both RSV A and B across two seasons. The company also unveiled promising results in people age 18 to 59 years old with underlying conditions. Pfizer is competing against GSK (GSK)’s Arexvy, which hit the market about the same time in 2023.

But, there are several bearish factors plaguing Pfizer stock. Revenue from its Covid products — which prodded Pfizer into the limelight in 2020 — continues to decline. The company had also hoped to enter the weight-loss melee with leaders Novo Nordisk (NVO) and Eli Lilly (LLY). In December, Pfizer scrapped its twice-daily pill due to unexpectedly high rates of nausea and vomiting.

So, all in all, is PFE stock a buy or a sell right now?

Pfizer Stock Fundamentals: ‘Massive’ Upside
Leerink Partners analyst David Risinger said there was “massive” upside in Pfizer’s first-quarter report.

Adjusted earnings fell 33% to 82 cents per share, but walloped expectations for 51 cents, according to FactSet. Sales also tumbled 20% to $14.88 billion, but topped forecasts for $13.87 billion.

As expected, sales of Comirnaty, the Covid shot Pfizer developed with BioNTech (BNTX), plummeted 88% to $354 million. Sales also missed projections for $446.5 million. Excluding the impact from Paxlovid and Comirnaty, total sales rose 11%. Analysts polled by FactSet expect Comirnaty sales to hit annual low points each second quarter.

Vyndaqel proved to be a bright spot in the quarter. Sales skyrocketed 66% to $1.14 billion, topping calls for $895.2 million. Vyndaqel treats cardiomyopathy due to hereditary transthyretin-mediated amyloidosis. In this condition, abnormal protein builds up on the heart tissues, causing problems.

But Nurtec sales came in at $178 million, up just 7% and below forecasts for $316.5 million.

For the second quarter, Pfizer stock analysts forecast earnings of 45 cents per share and $13.03 billion in sales. Earnings are expected to dive 33%. But sales are expected to edge 2.3% higher. This could be the first quarter of sales growth since the fourth quarter of 2022.

Investors are encouraged to seek stocks with 20%-25% recent sales and earnings growth. Pfizer is not hitting those marks. Big institutional investors — who account for up to 70% of all market trades — usually look for stocks with accelerating earnings and sales growth.

Pharmaceutical Company’s Annual Metrics
Pfizer’s sales have fallen markedly since hitting a record in 2022. Last year, sales tumbled 42% to nearly $58.5 billion. Top sellers included Comirnaty and Paxlovid, which brought in a $11.22 billion and $1.28 billion, though sales tumbled a respective 70% and 93% year over year.

Blood thinner Eliquis generated $6.75 billion in sales, up 4% on a strict, as-reported basis. Prevnar sales inched 2% ahead to $6.44 billion.

But other key products saw downfalls. Revenue from Xeljanz, which treats inflammatory conditions, fell 5% to $1.7 billion. Sales of Enbrel, developed with Amgen (AMGN), toppled 17% to $830 million. Pfizer sells Enbrel outside the U.S. and Canada.

For 2024, Pfizer expects adjusted earnings of $2.15 to $2.35 per share and $58.5 billion to $61.5 billion in sales. At the midpoints, earnings would climb more than 22% as sales rise almost 3%.

Pfizer Stock And Recent News
Pfizer recently won FDA approval for Beqvez, its gene therapy for hemophilia B. Beqvez will rival Hemgenix from CSL Behring and Uniqure (QURE). Hemgenix gained U.S. approval in late 2022 and also costs $3.5 million before insurance deductions and reimbursement.

Pfizer also recently said its new drug, Adcetris, improved overall survival, progression-free survival and overall response rates in patients with diffuse large B-cell lymphoma. Progression-free survival is how long patients live before their cancer worsens. The company added Adcentris to standard cancer drugs lenalidomide and rituximab. It compared the regimen to lenalidomide and rituximab plus a placebo.

“The results are particularly encouraging because the study evaluated heavily pre-treated patients, including some who received prior CAR-T therapy,” Pfizer’s Chief Development Officer Roger Dansey said in a statement. CAR-T drugs are developed using a patient’s own immune cells.

Promisingly, Pfizer said in February its RSV vaccine, Abrysvo, proved 77.8% effective over two years against lower respiratory tract infection in adults age 60 and older. This is part of an ongoing final-phase study in the Northern and Southern hemispheres. That’s a drop from 88.9% effectiveness over a year, but still shows “durable” effectiveness, Pfizer said in a news release.

Pfizer also recently won European Commission approval for Velsipity for patients age 16 and older with moderately to severely active ulcerative colitis. The drug is approved for people who didn’t respond to or stopped responding to other treatments for the gastrointestinal condition.

Technical Analysis: PFE Stock Tops 50-Day Line
Pfizer stock is trading far below its 200-day moving average, but topped its 50-day line on May 1 after reporting its first-quarter earnings, MarketSurge shows. It’s important to note that shares are not forming a chart pattern for investors to watch.