Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products in the United States, Europe, and internationally. The company offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, Zavzpret, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Abrysvo, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands. It also provides medicines and vaccines in various therapeutic areas, such as biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Litfulo, Velsipity, and Cibinqo brands; amyloidosis, hemophilia, endocrine diseases, and sickle cell disease under the Vyndaqel family, Oxbryta, BeneFIX, Somavert, Ngenla, and Genotropin brands; sterile injectable and anti-infective medicines under the Sulperazon, Medrol, Zavicefta, Zithromax, and Panzyga brands; and biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Inlyta, Bosulif, Mektovi, Padcev, Adcetris, Talzenna, Tukysa, Elrexfio, Tivdak, Lorbrena, and Braftovi brands. In addition, the company involved in the contract manufacturing business. It serves wholesalers, retailers, hospitals, clinics, government agencies, pharmacies, individual provider offices, retail pharmacies, and integrated delivery systems. The company has collaboration agreements with Bristol-Myers Squibb Company; Astellas Pharma US, Inc.; Merck KGaA; and BioNTech SE. Pfizer Inc. was founded in 1849 and is headquartered in New York, New York.

Pfizer appears to be a mature pharmaceutical company with strong margins, but with notable constraints in capital efficiency and liquidity. Its valuation on multiples overall looks moderate: P/E, P/S, P/B, and P/FCF are below industry medians, which supports the idea of undervaluation; however, this is partially offset by weak asset and invested capital profitability trends. It is especially important that P/B and P/S are significantly below the median, and P/FCF is also lower, meaning the market is not pricing in a growth premium and is valuing the business cautiously. At the same time, debt/equity is above the industry level, while the quick ratio and current ratio are noticeably weaker than the median, indicating tighter short-term liquidity and increasing valuation risk. On the other hand, operating margin is very strong and significantly above the industry average, and net profit margin is also above the median, which indicates good cost control and the ability to generate profit at the operating model level. ROE looks acceptable and better than the industry, but ROA and ROI remain weak, meaning that assets and invested capital are not being used as efficiently as they could be. Revenue and earnings trends in recent periods do not look sustainably growing: revenue fluctuates, and net income and EPS also decline from higher levels, which limits the case for a higher target multiple. EBITDA and operating income remain significant, but their trajectory confirms stability rather than accelerating growth. Debt burden in absolute terms remains high, and long-term debt does not show a meaningful decline, so financial leverage remains a cautionary factor. There is a dividend yield, but it does not appear high enough on its own to materially support a re-rating. Overall, the fundamentals support the current valuation with a slight downward bias, because inexpensive multiples and strong margins are offset by weak liquidity, high debt, and unconvincing capital efficiency trends.

Pfizer, Inc.

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Слабый индекс, незначительно вырос. Рынок на стороне быков.

Weak index, slightly up. The market is on the bulls' side.

Слабый индекс, незначительно упал

Pfizer looks inexpensive on valuation multiples and strong on margins, but weak liquidity, high debt, and low capital efficiency limit its re-rating potential.

(RTTNews) - Pfizer Inc. (PFE) and BioNTech SE (BNTX) announced that the European Commission (EC) has granted marketing authorisation for the COVID-19 vaccine formulation targeting the XFG variant, for active immunisation to prevent COVID-19 caused by SARS-CoV-2 in individuals 6 months of age and older.
The adaptation is based on the recommendation from the Emergency Task Force (ETF) of the European Medicines Agency (EMA) to update COVID-19 vaccines to target the XFG variant.
The EC approval follows the EMA's Committee for Medicinal Products for Human Use (CHMP) recommendation from July 2026.
The marketing authorisation is valid in all 27 European Union Member States, as well as Iceland, Liechtenstein and Norway.
The companies have also submitted data for the updated COVID-19 vaccine to other regulatory authorities. The COVID-19 vaccines are based on BioNTech's proprietary mRNA technology and were jointly developed by BioNTech and Pfizer. Pfizer and BioNTech said that they have already initiated manufacturing of the monovalent XFG-adapted COVID-19 vaccine at risk to ensure supply readiness in expectation of the respiratory disease season, when the demand for COVID-19 vaccination is expected to increase. PFE has traded between $23.11 and $28.75 over the last year. The stock closed Wednesday's trade at $25.15, down 0.40%.
PFE is currently down 0.24% at $25.10 in the pre-market.
BNTX closed Wednesday's trade at $92.95, up 0.54%.
For more such biotechstock news visit rttnews.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pfizer-BioNTech Secures EU Marketing Authorisation For XFG-Adapted COVID-19 Vaccine

Moderna MRNA is set to report second-quarter 2026 earnings on July 31, before the opening bell. The Zacks Consensus Estimate for second-quarter sales is pegged at $126.7 million, while the estimate for earnings is a loss of $1.97 per share. The revenue figure suggests a decline from the year-ago levels, but the bottom line is expected to improve.
Over the past 30 days, the Zacks Consensus Estimate for 2026 loss per share has declined from $8.26 to $8.64, while the loss for 2027 has risen from $4.29 to $4.33.
Image Source: Zacks Investment Research
MRNA’s Earnings Surprise History
The biotech’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 46.21%. In the last reported quarter, Moderna delivered an earnings surprise of 60.93%.
Image Source: Zacks Investment Research
What Our Model Predicts for MRNA
Per our proven model, companies with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) have a good chance of delivering an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Moderna has an Earnings ESP of -2.41% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping MRNA’s Upcoming Results
Moderna is likely to have reported product sales in the quarter from three marketed products — two COVID-19 vaccines (Spikevax and mNexspike) and an RSV vaccine (mResvia). A significant portion of product sales is expected to have come from the COVID-19 vaccines.
We expect minimal product sales of mResvia, attributed to stiff competition from competing RSV vaccines, Arexvy and Abrysvo, marketed by bigwigs GSK plc GSK and Pfizer PFE, respectively.
In April, Moderna secured approval in the EU for mCombriax (mRNA-1083), the first combination vaccine for active immunization against COVID-19 and influenza. This also marks the fourth marketed product in the company’s portfolio. Investors will likely seek updates from management on the commercialization plans for this vaccine, as well as Moderna’s timeline for FDA resubmission.
The initial filing for mCombriax was voluntarily withdrawn last year after the agency requested additional efficacy data for the flu component. This issue was addressed with positive late-stage data announced in June 2025, when the company’s standalone flu shot, mRNA-1010, demonstrated superior efficacy compared with GSK’s approved influenza vaccine. mCombriax integrates mNexspike with mRNA-1010.
Investors might also seek updates on Moderna’s commercialization plans for mRNA-1010, which is already under FDA review. Although a final decision is expected by next week, optimism has been building since last month, when an FDA advisory committee unanimously backed approval of the vaccine.
An important candidate in Moderna’s pipeline is intismeran autogene, a personalized cancer therapy being developed in collaboration with Merck MRK. The companies are already evaluating this therapy in three pivotal phase III studies — one in melanoma and two in non-small cell lung cancer (NSCLC). Moderna and Merck are also studying the therapy in various mid-stage studies for other cancer indications, such as bladder cancer and renal carcinoma. Investors will likely seek updates from management on the progress of this MRK-partnered therapy.
Nonetheless, a single quarter’s results are not important for long-term investors. Let us delve deeper to understand whether to buy, sell, or hold Moderna stock at present.
MRNA’s Stock Price Performance & Valuation
Year to date, Moderna’s shares have surged 89% compared with the industry’s 2% growth. The stock has also outperformed the sector as well as the S&P 500.
MRNA Stock Underperforms Industry, Sector & S&P 500
Image Source: Zacks Investment Research
From a valuation standpoint, Moderna is trading at a premium to the industry. Going by the price/sales (P/S) ratio, the company’s shares currently trade at 9.91 times trailing 12-month sales value, higher than 2.35 for the industry.
Image Source: Zacks Investment Research
Our Investment Thesis on MRNA Stock
Moderna is navigating a challenging transition as demand for its COVID-19 vaccine continues to normalize, weighing on revenue growth. However, the company remains well positioned to execute its long-term strategy, supported by a strong balance sheet and an expanding mRNA-based pipeline. As of March 31, 2026, Moderna held approximately $8.1 billion in cash and cash equivalents. Combined with its ongoing cost-efficiency initiatives, this liquidity should support the company's research, development and commercialization efforts in the upcoming years.
Moderna's commercial performance outside COVID-19 has been mixed, with mResvia witnessing a slower-than-expected launch amid intense competition in the RSV vaccine market. Nevertheless, the company's broader respiratory vaccine franchise offers meaningful growth opportunities. Investors are closely watching the FDA review of mRNA-1010, which could become the company's next growth driver if approved. The EU approval of mCombriax further strengthens its respiratory vaccine portfolio and expands its presence in the annual vaccination market. Successful commercialization of these products could diversify Moderna's revenue base and reduce its reliance on COVID-19 vaccine sales.
Beyond vaccines, Moderna is leveraging its proprietary mRNA platform to expand into oncology, autoimmune diseases and cell therapy. Last month, the company outlined plans to develop therapies spanning cancer antigen treatments, T-cell engagers, cell therapy enhancers, in vivo CAR-T, in vivo CAR-M and tolerizing therapies. Although these programs remain in the early stages of development, they highlight the versatility of Moderna's platform and significantly broaden its long-term growth opportunities beyond vaccines.
How to Play the MRNA Stock?
While Moderna's premium valuation and recent downward estimate revisions warrant caution, we believe existing investors should maintain their positions. With the FDA decision on mRNA-1010 approaching, the recent EU approval of mCombriax and a deep pipeline spanning oncology and other therapeutic areas, the company remains well positioned to drive growth beyond COVID-19 vaccines.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Moderna Q2 Earnings Loom: Buy or Sell the Stock Ahead of Results?

Key Points
AbbVie successfully transitioned away from Humira over the past three years.
It still looks cheap relative to its long-term growth potential.
It has plenty of room to raise its dividend.
AbbVie (NYSE: ABBV), one of the world's largest pharmaceutical companies, is usually considered a blue chip dividend stock rather than a higher-growth one. Yet over the past five years, its stock has rallied 125% and delivered a total return of 170% with reinvested dividends.
AbbVie has raised its dividend for 53 consecutive years (including its history as part of Abbott Laboratories (NYSE: ABT) up to 2013), putting it in the elite club of Dividend Kings that have boosted their payouts each year for at least half a century. It also still looks like a bargain at 18 times forward earnings. So is AbbVie one of the best healthcare stocks to buy right now?
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
What happened to AbbVie over the past few years?
Back in 2018, AbbVie's blockbuster autoimmune drug, Humira, accounted for 61% of its top line. To diversify its top line away from Humira, which was set to lose its U.S. patent exclusivity in 2023, it launched two immunology drugs, Skyrizi and Rinvoq, in 2019. It also acquired Allergan -- the developer of Botox -- in a $63 billion cash-and-stock deal in 2020.
Many investors still dreaded Humira's loss of patent exclusivity. But from 2021 to 2025, AbbVie's revenue still rose from $56.1 billion to $61.2 billion as stronger sales of Skyrizi and Rinvoq, the integration of Allergan's business, and new acquisitions offset that pressure.
Its adjusted EPS still dipped from $11.85 to $10.00 as biosimilars squeezed Humira's margins, it recognized some big upfront charges from its acquisitions of ImmunoGen and Cerevel Therapeutics, and it ramped up its R&D investments to develop new drugs.
However, AbbVie proved the bears wrong by growing its top line and staying firmly profitable even after Humira faced more biosimilar competitors. Its annual free cash flow (FCF) dropped from $22.0 billion in 2021 to $17.8 billion in 2025, but it still easily covered its annual dividends -- which rose from $9.3 billion in 2021 to $11.7 billion in 2025.
What will happen to AbbVie over the next few years?
From 2025 to 2028, analysts expect AbbVie's revenue and adjusted EPS to grow at CAGRs of 9% and 21%, respectively. That growth should be driven by the stabilization of Humira's year-over-year growth, soaring sales of Skyrizi and Rinvoq, and the growing importance of ImmunoGen's antibody-drug conjugates (ADCs) and Cerevel's neuroscience assets.
Skyrizi and Rinvoq are already approved for inflammatory bowel disease, plaque psoriasis, and other dermatological conditions, and will likely be approved for additional uses over the next few years. AbbVie expects those two drugs to generate over $31 billion in combined sales by 2027 (which would be equivalent to 43% of its projected revenue for that year).
Both of those drugs will remain under patent protection well into the 2030s, giving AbbVie plenty of cash and time to develop and acquire more blockbuster drugs. It will also continue to expand its oncology and neuroscience portfolio to reduce its dependence on the immunology market.
Is it the right time to buy AbbVie?
AbbVie pays a forward yield of 2.7%, which might not seem impressive compared to the 10-year Treasury's 4.6% yield or Pfizer's (NYSE: PFE) 7% yield. However, AbbVie has also easily outperformed Pfizer -- which lost more than 40% of its value over the past five years as it struggled with plummeting COVID-19 vaccine sales and upcoming patent expirations. AbbVie can also easily afford to continue raising its dividends for the foreseeable future.
AbbVie might not be an exciting investment, but it's a reliable dividend play for long-term investors. That's why I hold AbbVie as one of my top holdings (5.9% of my portfolio), and why I wouldn't hesitate to add more shares even as it hovers near its all-time high.
Should you buy stock in AbbVie right now?
Before you buy stock in AbbVie, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AbbVie wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!*
Now, it’s worth noting Stock Advisor’s total average return is 899% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Leo Sun has positions in AbbVie and Pfizer. The Motley Fool has positions in and recommends AbbVie, Abbott Laboratories, and Pfizer. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AbbVie Has Raised Its Dividend for 53 Straight Years and Still Looks Attractively Valued. Is This Dividend King the Smartest Buy in Healthcare Right Now?

Pfizer PFE is set to report its second-quarter 2026 earnings on Aug. 4, before market open. The Zacks Consensus Estimate for sales and earnings for the second quarter is pegged at $14.45 billion and 68 cents per share, respectively. Estimates for Pfizer’s 2026 earnings have declined from $2.99 to $2.96 per share over the past 30 days.
PFE Estimate Movement
Image Source: Zacks Investment Research
PFE’s Earnings Surprise History
The healthcare bellwether’s performance has been solid, with the company exceeding earnings expectations in each of the trailing four quarters. It delivered a four-quarter earnings surprise of 21.93%, on average. In the last reported quarter, the company delivered an earnings surprise of 5.63%, as seen in the chart below.
What Does Our Model Say?
Pfizer has an Earnings ESP of +2.07% and a Zacks Rank #3 (Hold) at present, indicating a likely positive surprise.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Per our proven model, companies with a positive Earnings ESP and a Zacks Rank #1, #2 (Buy), or #3 have a good chance of delivering an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Shaping PFE’s Upcoming Results
Higher sales of products like the Vyndaqel family, Eliquis, Padcev and Lorbrena are likely to have driven top-line growth. Among the newer products, sales of Nurtec ODT/Vydura, Cibinqo and RSV vaccine, Abrysvo, are expected to have risen.
However, sales of some other key products like Enbrel are likely to have declined. Also, lower revenues from COVID products, Comirnaty and Paxlovid, are likely to have hurt top-line growth.
Expectations for PFE’s Primary Care Segment
In Primary Care, alliance revenues and direct sales from Bristol-Myers BMY for Eliquis are likely to have risen, driven by higher demand trends globally, partially offset by price and generic erosion in some ex-U.S. markets. The Zacks Consensus Estimate for alliance revenues from Eliquis is $1.98 billion.
As regards sales of key vaccine Prevnar, higher sales in ex-U.S. markets are likely to have been offset by the impact of lower demand in the United States.
The Zacks Consensus Estimate for sales of the Prevnar family of vaccines is $1.39 billion.
Pfizer records direct sales and alliance revenues from its partner, BioNTech BNTX, for the COVID-19 vaccine, Comirnaty. Revenues from Pfizer/BioNTech’s Comirnaty are likely to have declined in the second quarter due to narrower COVID-19 vaccine recommendations in the United States that have reduced Comirnaty’s eligible patient population and subsequently its demand. Sales of the antiviral pill for COVID, Paxlovid, should also have declined due to lower infection rates and lower international government purchases.
The Zacks Consensus Estimate for direct sales and alliance revenues from Comirnaty is $278.0 million, while that for Paxlovid is $119.0 million.
Sales of Abrysvo are likely to have gained from launch uptake in some international markets, partially offset by weaker vaccination rates in the United States.
Expectations for PFE’s Oncology Segment
Pfizer’s oncology sales in the second quarter are expected to have been driven by higher sales of key drugs like Padcev, Lorbrena and the Braftovi-Mektovi combination, which should make up for declining sales of drugs like Ibrance and Adcetris. Sales of the new drug, Elrexfio, are also likely to have risen in the quarter.
Sales of oncology biosimilars are likely to have risen year over year and contributed to the oncology segment’s growth.
The Zacks Consensus Estimate for Padcev is $661 million, while that for Ibrance is $1.05 billion.
Expectations for PFE’s Specialty Care Segment
In the Specialty Care unit, sales of the Vyndaqel family are expected to have risen, as higher sales in international markets may offset lower revenues in the United States. The Zacks Consensus Estimate for sales of the Vyndaqel family is $1.75 billion.
While sales of Xeljanz rose, those of Enbrel declined in the first quarter, a trend likely to have continued in the second quarter.
On the second-quarter conference call, Pfizer is expected to provide an update on its 2026 financial guidance.
Nonetheless, a single quarter’s results are not so important for long-term investors. Let us delve deeper to understand whether to buy, sell or hold Pfizer stock.
PFE Stock’s Price & Valuation
Pfizer’s stock has risen 6.7% so far this year compared with an increase of 14.8% for the industry.
PFE Stock Outperforms Industry
Image Source: Zacks Investment Research
From a valuation standpoint, Pfizer appears attractive relative to the industry and is trading below its five-year mean. Going by the price/earnings ratio, Pfizer’s shares currently trade at 8.73 forward earnings, significantly lower than 19.11 for the industry as well as the stock’s five-year mean of 9.31.
PFE Stock Valuation
Image Source: Zacks Investment Research
Investment Thesis on PFE Stock
Pfizer’s dependence on its COVID business has now reduced. Its non-COVID operational revenues are improving, driven by key in-line products like Vyndaqel, Padcev and Eliquis, new launches and newly acquired products like Nurtec and those from Seagen. In 2026, Pfizer expects its recently launched and acquired products to record continued double-digit growth.
Pfizer is one of the largest and most successful drugmakers in the oncology space. Oncology sales comprise around 27% of its total revenues. Pfizer has also ventured into the oncology biosimilars space and markets six biosimilars for cancer. Pfizer is advancing its oncology clinical pipeline across areas such as breast, thoracic, gastrointestinal and blood cancer. By 2030, it expects to have eight or more blockbuster oncology medicines in its portfolio.
The company is also trying to rebuild its pipeline through acquisitions. Seagen, Metsera and Biohaven are the most significant strategic acquisitions in recent years. Pfizer’s significant cost reduction and efforts to improve R&D productivity measures are also driving profit growth. Pfizer’s dividend yield stands at around 7%, which is also impressive.
The company expects its recently launched and acquired products and a strong pipeline to help revive top-line growth toward the end of the decade.
However, Pfizer faces several challenges in the near term. Pfizer is seeing declining sales of its COVID products, Comirnaty and Paxlovid, due to lower vaccination rates and COVID infection rates.
Pfizer faces a significant patent cliff later this decade. Pfizer expects a significant negative impact on revenues from the loss of exclusivity (“LOE”) cliff in the 2026-2030 period as several of its key products, including Eliquis, Ibrance, Xeljanz and Xtandi, face patent expirations.
Pfizer’s revenue and earnings guidance for 2026 indicates mostly flat to slightly negative growth. An update is expected on the second-quarter 2026 conference call.
Stay Invested in PFE Stock
Pfizer is navigating a difficult transition following the sharp decline in COVID-related sales. The market is concerned about Pfizer’s ability to replace declining COVID-related revenues and offset upcoming patent expirations through new product launches, pipeline development and contributions from acquisitions.
Despite these challenges, Pfizer's valuation is relatively inexpensive compared with many large pharmaceutical peers, and the stock offers one of the highest dividend yields in the sector. The company is rebuilding its pipeline in oncology and obesity, which it believes can drive growth in 2028 and beyond. Although Pfizer’s 2026 sales guidance indicates minimal growth, the company expects a high single-digit revenue CAGR for five years starting in 2029.
Pfizer expects the growth to be driven by its advancing R&D pipeline and the continued progress of new and acquired products. Long-term investors may consider retaining this Zacks Rank #3 (Hold) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pfizer Stock Ahead of Q2 Earnings: To Buy or Not to Buy?

Eli Lilly LLY is a leader in the GLP-1 market, driven by strong demand for its blockbuster tirzepatide injections, Mounjaro (diabetes) and Zepbound (obesity). In April, Lilly expanded its obesity portfolio with the launch of its oral GLP-1 pill, Foundayo (orforglipron). Investors will be closely watching second-quarter results for sales numbers of Mounjaro and Zepbound, along with early sales trends and management's commentary on Foundayo’s launch uptake.
However, Lilly also generates a meaningful portion of revenues from its oncology franchise. The Zacks Consensus Estimate for Eli Lilly’s overall oncology portfolio sales in the second quarter of 2026 is pegged at $2.61 billion. A significant portion of these revenues is likely to be generated from sales of the company’s blockbuster breast cancer drug, Verzenio. Sales of this drug are expected to have been driven by higher volumes due to increased demand in ex-U.S. and U.S. markets.
Sales of RET inhibitor Retevmo and the newer lymphoma drug Jaypirca are also expected to have contributed positively to top-line growth during the quarter. However, these gains are likely to have been partially offset by lower sales of older cancer drugs like Alimta and Cyramza, which are being impacted by competition from immuno-oncology agents in the United States.
Eli Lilly secured FDA approval for its new breast cancer drug, Inluriyo (imlunestrant), in late 2025 and subsequently launched it in the United States. Investors are expecting sales of the drug to rise sequentially in the second quarter.
Additionally, investors will also be watching sales of Lilly's newer growth products across immunology, dermatology and neuroscience. Drugs such as Omvoh for inflammatory bowel disease, Ebglyss for atopic dermatitis and Kisunla for early Alzheimer's disease have been posting strong growth. These newer medicines are gradually becoming meaningful contributors to revenues.
While another strong quarter from Lilly's GLP-1 franchise is widely expected, investors will also closely monitor sales of its oncology portfolio and other newer medicines. Sustained growth across these businesses would reinforce confidence that Lilly's long-term earnings outlook is increasingly supported by a diversified portfolio rather than being solely dependent on obesity and diabetes treatments ahead of its second-quarter results on Aug. 5.
LLY’s Competition in the Oncology Space
Other bigger players in the oncology space include AstraZeneca AZN, Merck MRK and Pfizer PFE.
AstraZeneca generated 48% of its total second-quarter 2026 revenues from oncology drugs, with sales in the segment rising 15% year over year. AZN’s strong oncology performance was driven by medicines such as Tagrisso, Lynparza, Imfinzi, Calquence and Enhertu (in partnership with Daiichi Sankyo).
Merck’s oncology sales grew around 12% in the first quarter of 2026, driven by key oncology medicines, such as PD-L1 inhibitor Keytruda and PARP inhibitor Lynparza, which it markets in partnership with AstraZeneca. MRK’s Keytruda, approved for several types of cancer, alone accounted for about 49% of Merck’s total first-quarter revenues. Pfizer’s first-quarter 2026 oncology revenues grew 9% on a reported basis, driven by drugs like Ibrance, Xtandi, Lorbrena, the Braftovi-Mektovi combination and Padcev. The segment now accounts for about 26% of Pfizer’s overall sales.
Both Merck and Pfizer are expected to report second-quarter results next week.
LLY’s Stock Price, Valuation and Estimates
Shares of Eli Lilly have gained 11.4% year to date compared with the industry’s 12.7% growth. But during the same time frame, the company has outperformed the sector and the S&P 500, as seen in the chart below.
LLY Stock Price Movement
Image Source: Zacks Investment Research
From a valuation standpoint, LLY stock is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 29.40 forward earnings, higher than 19.07 for the industry. However, the stock is trading below its five-year mean of 34.56.
LLY Stock Valuation
Estimates for Eli Lilly’s 2026 earnings have deteriorated from $36.58 to $35.03 per share in the past 60 days, and estimates for 2027 earnings have improved from $44.45 to $44.98 per share over the same time frame.
LLY Estimate Movement
Image Source: Zacks Investment Research
Eli Lilly currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's How LLY's Non-GLP-1 Portfolio Is Poised Ahead of Q2 Earnings

Vertex Pharmaceuticals VRTX is scheduled to report its second-quarter 2026 results on Aug. 3, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $3.23 billion, while the same for earnings is $4.85 per share.
Let’s see how things might have shaped up before the announcement.
Factors Likely to Influence VRTX's Q2 Results
Vertex’s revenues in the to-be-reported quarter are likely to have been driven by strong demand for its blockbuster cystic fibrosis (“CF”) medicine, Trikafta/Kaftrio (Trikafta’s brand name in Europe). The drug accounts for the majority of Vertex’s total revenues.
The Zacks Consensus Estimate for Trikafta/Kaftrio sales is currently pegged at $2.45 billion for the second quarter of 2026.
Meanwhile, higher Trikafta/Kaftrio sales are likely to have caused sales erosion of VRTX’s other CF drugs — Symdeko (marketed as Symkevi in Europe), Orkambi and Kalydeco.
As Vertex’s CF franchise sales continue to grow, we expect investors to focus on the sales performance of its fifth CF medicine, Alyftrek (vanza triple), during the second quarter.
Alyftrek sales increased sequentially in the last reported quarter, a trend most likely to have continued in the to-be-reported quarter. Per management, the U.S. and European launch of Alyftrek is progressing well across all patient groups.
The company expects rising patient numbers from the label expansions for Alyftrek and Trikafta, along with launches of Alyftrek in additional geographies for treating younger patients, to drive CF growth in the to-be-reported quarter.
Year to date, shares of Vertex have risen 5.3% compared with the industry’s increase of 2.6%.
Image Source: Zacks Investment Research
Q2 Sales Expectation for VRTX’s Non-CF Products
Vertex and its partner CRISPR Therapeutics’ CRSP one-shot gene therapy, Casgevy, is approved for two blood disorders — sickle cell disease and transfusion-dependent beta-thalassemia.
Vertex leads the global development and commercialization of Casgevy under the terms of the 2021 agreement, with support from CRISPR Therapeutics.
Casgevy sales decreased on a sequential basis in the last quarter due to quarter-to-quarter variability in infusions. It remains to be seen whether the same trend continued or reversed in the quarter to be reported. Nonetheless, the launch of Casgevy has been gaining traction across the United States, Europe and the Middle East. Vertex is also making rapid progress in the drug’s access and reimbursement. An update is expected on the call.
VRTX’s novel non-opioid pain medicine Journavx (suzetrigine) was approved by the FDA in January 2025. Journavx’s sales improved sequentially in the last quarter, driven by strong prescription growth. Also, the drug’s launch metrics and early reimbursement progress look favorable. Vertex expects higher sales from Journavx in the second quarter as prescription volumes are rising.
Several updates related to Vertex’s pipeline candidates, which are in mid- to late-stage studies for treating diseases like acute and neuropathic pain, APOL1-mediated kidney disease, IgA nephropathy, primary membranous nephropathy, and cell therapy for type I diabetes, are also expected on the upcoming earnings call.
VRTX’s Recent Key Developments
In June 2026, the FDA accepted VRTX’s regulatory filing seeking approval for its investigational candidate, povetacicept, for treating adults with immunoglobulin A nephropathy (IgAN), a rare progressive kidney disease. A final decision from the FDA is expected on Nov. 30, 2026.
Also, Vertex recently agreed to acquire all outstanding shares of Crinetics Pharmaceuticals for $85 per share, valuing the deal at around $10 billion. The transaction is expected to be closed in the third quarter of 2026.
The impending acquisition will add Crinetics’ first marketed drug, Palsonify, which is the first once-daily oral therapy approved for treating adults with acromegaly, to Vertex’s commercial portfolio. The company will also add several of Crinetics’ pipeline candidates to its portfolio.
VRTX's Earnings Surprise History
Vertex has a mixed record of earnings surprises over the trailing four quarters. The company beat earnings estimates in three of the trailing four quarters, while missing the same on the remaining occasion, delivering an average surprise of 4.24%. In the last reported quarter, VRTX delivered an earnings surprise of 5.67%.
Vertex Pharmaceuticals Incorporated Price and EPS Surprise
Earnings Whispers for VRTX Stock
Our proven model does not conclusively predict an earnings beat for Vertex this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
VRTX’s Earnings ESP: Vertex’s Earnings ESP is -0.86% as the Most Accurate Estimate currently stands at $4.80, lower than the Zacks Consensus Estimate of $4.85.
VRTX’s Zacks Rank: Vertex currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some stocks worth considering from the healthcare space, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Acadia Pharmaceuticals ACAD has an Earnings ESP of +25.00% and a Zacks Rank #2 at present.
Shares of ACAD have lost 7% year to date. Acadia’s earnings beat estimates in three of the trailing four quarters and missed on the remaining occasion, delivering an average surprise of 20.83%. Acadia is scheduled to report second-quarter results on Aug. 4.
Pfizer PFE has an Earnings ESP of +2.07% and a Zacks Rank #3 at present.
Shares of Pfizer have risen 3.7% so far this year. Pfizer beat earnings estimates in each of the last four reported quarters, delivering an average earnings surprise of 21.93%. Pfizer is scheduled to report second-quarter results on Aug. 4.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Vertex Gears Up to Report Q2 Earnings: What Can Investors Expect?

(RTTNews) - Legend Biotech Corporation (LEGN), a clinical-stage biopharmaceutical company, announced Monday that its Board of Directors had appointed Alan Bash as the interim Chief Executive Officer (CEO) after Ying Huang stepped down from the role on July 24, 2026.
Huang joined Legend Biotech in July 2019 and served as the Chief Financial Officer before being promoted to CEO. He has more than nine years of research and development experience at major pharmaceutical companies and 12 years of experience as a biotechnology analysts on Wall Street. The company said Huang will remain on as an advisor through August to support the leadership transition to Alan Bash.
Bash currently serves as President of the CARVYKTI Business Unit. Previously, he was CEO of two oncology-focused biotech companies -ZielBio and Checkmate Pharmaceuticals, Inc (CMPI). Prior to that, he spent 23 years at Bristol Myers Squibb Co. (BMY), holding leadership roles across major therapeutic areas, including oncology, where he supported the U.S. launch of Opdivo and the expansion of Yervoy and Erbitux. Bash also contributed to the commercialization of several blockbuster products, including Abilify with Otsuka and Eliquis with Pfizer Inc., (PFE).
The company stated that the Board had initiated a comprehensive search process to identify a permanent successor.
LEGN closed Friday's trade at $22.22, down 5.57%. In the pre-market LEGN is trading down 6.72% at $20.73.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Legend Biotech Appoints Bash As Interim CEO Following Ying Huang's Departure; Stock Down

Key Points
Energy Transfer sports a 6.6% yield and could see high distribution growth ahead, thanks to its exposure to the AI data center trend.
Stabilizing results suggest Pfizer will maintain its nearly 7% dividend yield and eventually re-rate from its current super-low valuation.
An improving macro backdrop points to a further recovery for UPS stock, which currently has a forward yield of 5.7%.
When it comes to high-yield dividend stocks, it's not a matter of quantity, but of quality. There are numerous stocks with forward dividend yields of 5% or higher, but many of them are firmly in the "yield trap" category.
That is, either they are at risk of a dividend cut or of price declines that exceed the returns from their quarterly cash payouts. It's best to be selective with dividend stocks, but filtering for quality, a few stocks stand out as compelling long-term buys in today's market: Energy Transfer (NYSE: ET), Pfizer (NYSE: PFE), and United Parcel Service (NYSE: UPS).
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Energy Transfer offers a high yield and an AI growth catalyst
Energy Transfer is a master limited partnership (MLP) focused on owning midstream energy assets like pipelines. As a pass-through entity, Energy Transfer pays out most of its pretax income to investors as quarterly cash distributions. Based on the current distribution rate, this MLP stock has a forward yield of 6.6%.
Historically, Energy Transfer has steadily increased payouts by an average of 2% to 4% annually. However, payout growth could be far greater going forward, thanks to Energy Transfer's indirect exposure to the artificial intelligence (AI) megatrend.
AI data centers, hungry for energy, are boosting demand for midstream energy infrastructure. Capitalizing on this trend, Energy Transfer is targeting 3% to 5% annualized distribution growth in the years ahead. Assuming shares appreciate over the long term in line with distribution growth and this MLP continues to sport an above-average yield, this popular pipeline stock could deliver solid total returns for long-term investors.
"Yield trap" worries are overblown with Pfizer
Pfizer sports a nearly 7% forward dividend yield. Shares also trade at a super low 8.5 times forward earnings. With these metrics, some may see "super bargain," but others see "value trap," especially given Pfizer's weak fiscal performance in recent years.
However, poor sentiment for what has become one of the most undervalued pharmaceutical stocks could work in your favor. Yes, Pfizer continues to contend with dwindling demand for COVID-19 vaccines and treatments. The company also faces a major patent cliff in 2028, when it loses patent exclusivity on its flagship drug, anticoagulant Eliquis.
Still, the company expects the rest of its product lines to experience sales growth of 4% in 2026. Sell-side forecasts call for earnings of $2.94 per share, which, based on annual dividends of $1.72 per share, implies a forward payout ratio of around 59%. That may not be ideal, but if Pfizer can offset declines in COVID-19 and Eliquis sales with new products, it could sustain further dividend growth. Shares will likely rerate back toward a low-teens forward valuation.
United Parcel Service could keep stumping the skeptics
United Parcel Service, better known as UPS, has a forward dividend yield of 5.7%. The company has a 16-year track record of annual dividend increases, but payout growth has slowed in more recent years. There have also been concerns about UPS' high payout ratio, which could indicate a possible dividend cut down the road.
Yet while UPS may also give off some "yield trap" vibes, there's a reason why shares in the shipping company have bounced back in recent months. Despite concerns such as Amazon's decision to enter the logistics business, favorable developments, like rising freight rates, bode well for the space.
While analysts anticipate flat earnings growth this year, favorable pricing conditions could give way to stronger results in 2027. That's when consensus estimates call for earnings to increase from $7.13 to $8.02 per share. As earnings bounce and coverage of $6.56 per share in annual dividends further improves, UPS could provide steady cash returns while continuing its recovery. Consider it a buy now, but any subsequent wave of near-term weakness can make it an even stronger long-term buy.
Should you buy stock in Energy Transfer right now?
Before you buy stock in Energy Transfer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Energy Transfer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 26, 2026.
Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Pfizer, and United Parcel Service. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Absurdly Cheap Dividend Stocks to Buy Before August

Key Points
Pfizer is a large and well-respected pharmaceutical company.
Pfizer has been facing headwinds, leaving investors worried about the dividend.
The board continues to support the dividend as the company advances new drugs.
Pfizer (NYSE: PFE) has a shockingly high dividend yield of 6.8%. The S&P 500 Index (SNPINDEX: ^GSPC) has a 1% yield, and the average pharmaceutical stock's yield is roughly 1.5%. Given that huge disparity, it looks like Pfizer's yield is too good to be true.
There are reasons for the high yield that need to be monitored. However, management doesn't seem too worried about the dividend. Here are some reasons why, and why you might want to buy ultra-high-yield Pfizer.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Pfizer's management is focused on maintaining the dividend
Pfizer's dividend, like all dividends, is paid at the discretion of the board of directors. That said, the company's management team has been very clear about its support for the dividend. The dividend was mentioned directly on two slides in the first-quarter 2026 earnings presentation. One slide, focused on 2026 capital allocation priorities, stated that the company wants to "maintain and grow our dividend." A second slide, directed at longer-term growth, made "maintain dividend" a stated goal.
If the board was actively considering cutting the dividend, management wouldn't likely have mentioned the dividend on those two slides. Meanwhile, it is important to examine what supports the dividend. The answer isnt earnings which are under pressure right now, because a company's dividend payments appear on its cash flow statement. The number is fairly large for Pfizer, with the first-quarter dividend payment totaling $2.445 billion. Annualize that, and you get nearly $10 billion.
The company generated $2.6 billion from operating activities, which actually covers the dividend. However, the dividend isn't the only thing the company has to pay for. After paying dividends, paying down debt, and investing in its business, the company's cash balance at the end of the first quarter was higher than at the start. And not just a little higher, $560 million higher. The source of the extra cash was Pfizer selling long-term investments. Turning to the balance sheet, the company still has $11.3 billion in long-term investments, in addition to $1.7 billion in cash.
Watch Pfizer's dividend, but there's plenty to support it
This isn't meant to suggest that investors should simply ignore the headwinds Pfizer is facing today. While the company looks capable of supporting the dividend, investors are worried about the pharmaceutical company's future, which has pushed the stock lower and the yield higher. That said, most of the problems the company faces are normal for the pharmaceutical industry.
For example, Pfizer has several blockbuster drugs set to lose patent protection. However, its research and development haven't yet produced new drugs to fill the gap. In fact, the company has clearly fallen behind peers in the hot GLP-1 weight-loss space, after it had to stop work on a drug there in 2025. The thing is, R&D doesn't work on a timeline, even though patent expirations do. Sometimes things just don't line up as well as investors would like.
Pfizer has a long and successful history of developing drugs. Notably, in the case of GLP-1 drugs, it quickly adjusted and bought another company with a more attractive drug candidate. And it has numerous drugs working through the approval process beyond it, as well.
Think long-term with Pfizer
Pfizer is still a well-run drug company. It is just working through a difficult period, which has Wall Street worried about the future. If you think long-term, however, you may want to consider buying Pfizer and its outsize yield while everyone else is scared. The company is clearly standing behind the dividend, and when you dig a little deeper, it appears to have the wherewithal to keep supporting it.
Should you buy stock in Pfizer right now?
Before you buy stock in Pfizer, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pfizer wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $371,519!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,281,302!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Pfizer's Dividend Yield Looks Almost Too Good. Here's Why Management Isn't Worried.

The First Trust Nasdaq Pharmaceuticals ETF is seeing unusually high volume in afternoon trading Friday, with over 545,000 shares traded versus three month average volume of about 35,000. Shares of FTXH were up about 0.5% on the day.
Components of that ETF with the highest volume on Friday were Pfizer, trading up about 0.1% with over 19.0 million shares changing hands so far this session, and Bristol-myers Squibb, up about 1.2% on volume of over 6.4 million shares. Zoetis is the component faring the best Friday, up by about 1.8% on the day, while Moderna is lagging other components of the First Trust Nasdaq Pharmaceuticals ETF, trading lower by about 4.8%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	18.38 21.49
Price/Sales	2.18 3.03
P/B	1.52 2.57
P/FCF	15.20 18.61

Indicator	TTM Median
ROE	16.45 19.43
ROA	3.61 6.99
ROI	5.02 9.91
Net Worth	138.00 0.21
Quick Ratio	0.94 1.79
Current Ratio	1.25 2.79

Indicator	TTM Median
Net Profit Margin	12.42 11.32
Operating Margin	22.76 14.11
Gross Margin	74.33 75.26
Return on tangible equity	0.00 44.85

Indicator	TTM Median
EPS	0.66 0.43
EPS Forecast	0.57 0.37
Revenue	14.45B 17.00M
Gross Profit	10.90B —
EBITDA	5.65B —

Pfizer, Inc.

Recent quarterly and TTM performance

Valuation

Debts

Efficiency

Other ratios

Revenue