When Pfizer (PFE) ended 2023 returning -43.81%, value investors once again bet on its rebound potential.
Pfizer lost the bulls when management lowered its outlook on both its Covid antiviral drug and vaccine. Markets are looking ahead and beyond that market. Pfizer’s acquisition of Seagen offers hope. The firm is dedicated to revolutionizing cancer care. As it develops transformative therapies, Pfizer will increase its drug pipeline with the purchase.
Pfizer is paying $43 billion for the biotech firm.
Risks
Pfizer dipped and rebounded throughout the last year, only to fall again. The stock could continue that pattern if the firm posts another weak quarter and lowers its guidance.
In the mature telecom sector, Nokia (NOK) posted bad news again to close 2023. After markets closed, the firm said that it would not meet its FY 2023 outlook. Its net sales, comparable operating margin, and free cash flow will disappoint investors.
Nokia does not expect its talks to close the outstanding license renewals will close before year-end. Instead, it expects a resolution in 2024. Shareholders who already lost money holding the stock may close their position instead of waiting. Last month, Ericsson (ERIC) won AT&T’s business.
Between the two firms, Pfizer has the potential to report better results. Nokia will disappoint markets in the short term.
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