This guide teaches you how to buy Pfizer stock in 2023. We will walk through the step-by-step process of investing in Pfizer, covering them all in detail. We will start by telling you where to buy Pfizer shares and how to choose these brokers.
We will then discuss everything you need to know about the century-old company – from how the pharmaceutical and biotechnology company makes money, its current financial standing, how it works, and how its stock has performed in the past.
By the end of this guide, you will have decided if Pfizer is worth investing in in 2023.
Your capital is at risk. Other fees apply.
Let us break this process down, cover each of these steps in detail, and tell you everything else you need to know before hitting the buy button.
The Pfizer Stock Buying Guide - Reviewed
Step 1: Decide Where To Buy Pfizer Stock
Pfizer is one of the oldest and most successful companies in the pharmaceuticals and drug-making – industry and the world. Its popularity particularly after 2020 when it became among the earliest companies to successfully develop a vaccine for Covid-19.
These have helped it list with multiple stock exchanges, and it has even been incorporated into countless indexes and ETFs globally.
This abundance of choice complicates the search for the best Pfizer shares broker. To help you get started with this search, though, we advise that you consider the following factors when vetting stock trading platforms:
- Fees: Compare the total trading cost on different brokerages and go with the most affordable platform. Here, you will want to check all the trading and non-trading fees and charges imposed by a broker and assess their impact on the profitability of your Pfizer trades.
- Account minimums: Confirm the broker’s set minimum deposit and trading amounts before registering an account with them. You will also want to confirm their supported payment options and possible payment processing fees.
- Regulation and reputation: We also recommend that you only register with a highly regulated and reputable broker. Check online reviews to confirm the broker’s reliability, efficiency, and customer service.
- Security: We ask that you also check if the broker insures client deposits, maintains segregated bank accounts for client funds, and maintains strict control over access and sharing of sensitive client data. The ideal broker should enforce adequate controls and security measures around your funds and data.
- Access to tools: A broker should integrate sufficient trading, risk management, and educational tools and resources into their trading platform.
After vetting tens of multi-regulated and highly reputable trading platforms, our analysts have settled on the following two as the best Pfizer share brokers in 2023.
eToro – Best for User Friendliness and Social/Copy trading
Several factors make eToro one of the best Pfizer stock trading platforms. These include its ease of use – as evidenced by its straightforward client onboarding process and navigable interface. It also includes its multi-asset feature, which allows you to trade 5000+ financial instruments – such as shares, currencies, indices, commodities, ETFs, and crypto. Plus, eToro is a multi-regulated exchange (SEC, FCA, CySEC, ASIC) and has a solid reputation.
But we also consider it the best place to buy Pfizer stock because of its innovative trading platform. It is available as a web trader and mobile trading app. It is quite intuitive and integrates a wide range of educational, trading, and risk management tools and resources. And these make it appealing to both novice and expert traders. It is also ultrafast in transaction processing, and you can buy actual Pfizer shares or trade PFE share CFDs here.
To start investing in Pfizer via eToro, you will need to deposit at least $10 ($200 if you are copy trading). Being a commission-free broker, you will only have to pay a competitive spread (plus swap fees if margin trading) when buying PFE stock. The broker also supports many popular payment options and doesn’t charge a deposit processing fee. Withdrawals are, however, charged a fixed $5 fee – and the minimum you can withdraw is set at $30.
But even more importantly, eToro stands out as the best Pfizer shares broker because of its copy trading feature. This allows all the platform users to earn passively while investing in pharmaceutical stock. Experts will receive a commission from eToro if they let others copy trade settings of their Pfizer trade. Anyone else, on the other hand, earns when they automatically copy the trade settings of Pfizer trade from expert traders and mirror them on their account.
Your capital is at risk. Other fees apply.
Capital.com – Best CFD Brokerage for Active Traders
Capital.com is a pure-CFD brokerage, and it stands out as one of the best Pfizer shares brokers for active traders. Much of this can be attributed to its highly innovative trading platform. The platform was among the earliest to embrace Artificial Intelligence (AI) which has come in handy in eliminating bias in trading. It is also ultra-fast in processing transactions and integrates a wide range of premium trading, analysis, and risk management tools. Plus, it is also multi-platform.
In addition to the two proprietary Capital.com trading platforms (web trader and mobile app), you can also access the broker with third-party platforms like MT4 and Trading View. MT4 is preferred by most active traders because it gives them access to more advanced trade and analysis tools. It also supports automated trading and mirror trading (similar to eToro’s copy trading).
To start buying Pfizer on Capital.com, you will only need to deposit at least $20. And the broker supports all the most popular payment options. You will also appreciate Capital.com’s affordability. The broker is commission-free and charges no deposit/withdrawal processing fees. When trading PFE share CFDs here, you will only have to part with variable and highly competitive spread and swap fees (for margined trades).
Other factors that help Capital.com stand out as one of the best Pfizer shares brokers include its excellent customer support service. The broker’s support team is easily accessible via phone, live chat, email, WhatsApp, Facebook Messenger, Viber, and even Telegram.
Step 2: Research Pfizer (PFE) Stock
Before buying Pfizer stock, it is important that you research the company first. Learn its history, how it works, how it makes money, its current financial standing, and its past price performance. You will also want to look at the projected future performance of both the company and its stock.
By understanding all these, you will be better equipped to identify PFE’s share price triggers. These are the factors that help influence your buy, sell, or hold decisions.
We discuss all that below:
What is Pfizer?
Pfizer Inc. is an American-based multinational pharmaceutical and Biotechnology company engaged in the “relentless pursuit of breakthroughs that change patient’s lives.” It specializes in research, development, production, and distribution of medicines and vaccines targeting a diverse range of human diseases and other medical disorders. It also operates a successful animal health division.
Pfizer was started in 1849 by Charles Pfizer and his cousin Charles Erhart. This makes it one of the oldest of the most successful pharma industry players. Throughout its 172-year history, Pfizer has pioneered multiple revolutionary drugs and vaccines.
It, for instance, pioneered the mass production of citric acid, vitamin C, Ascorbic acid, and Penicillin. It also introduced Vibramycin – one of the first once-in-a-day antibiotics, launched Glucotrol, Unacyn – the injectable antibiotic, and Viagra (one of its most popular and controversial drugs).
In 2020, it became the first pharmaceutical to have its Covid-19 vaccine (developed in partnership with BioNTech) receive FDA approval. It was also the first Covid-19 vaccine adopted for use in the United States and the UK.
On its journey to becoming one of the largest pharma industry players and throughout its history, Pfizer has merged with and acquired multiple pharmaceutical companies. It has also acquired research and development catalogues for different drugs and vaccines or established different health divisions.
Among the most notable is the acquisition of J.B. Roerig Company – a nutritional supplements specialist – in 1952, the acquisition of Mack Illertissen in 1971 and that of Wyeth in 2009. In 2000, the company merged with Warner-Lambert, merged again with Pharmacia Corporation in 2003 and further merged with Hospira in 2015.
Pfizer makes money primarily through the sale of its pharmaceutical products – namely drugs, vaccines, and other treatment options for various ailments.
The company’s annual revenue from the sale of these products first tore above $1 Billion in 1972. Since then, the drug maker has posted an overall uptrending revenue and net income growth. And much of these could be attributed to the introduction of more drugs, vaccines, and treatment options as well as company expansion through mergers and acquisitions.
We must also observe that the past three years easily pass as Pfizer’s most successful period in its 172-year history. During this time, the company more than doubled its annual revenues. It started by moving from annual revenue of $41.65 Billion in 2020 to $81.28 in 2021 – reporting a 97% year-over-year growth.
In the 12 months leading to September 2022, Pfizer reported an annual income of $99.87 Billion (a 45% increase year-over-year). Plus, analysts expect the 2022 full-year revenue to help the pharmaceutical company revenues break above $100 Billion – for the first time ever.
This growth is directly attributable to the company’s development and sale of the Covid-19 vaccine. For context, the sharpest annual revenue gain posted by the company was between 2009 and 2010, when its annual revenue shot up by $16 Billion.
The company’s net income has also been on a steady increase. Between 2019 and 2020, Pfizer’s net income shot up by more than 240%, from $9 Billion to close to $22 Billion. And for the 12 months leading to September 2022, this net income increased by 53% year-over-year to reach $29.7 Billion.
The streak of profitability has helped Pfizer distribute dividends consistently for the past four decades. In 2022, for instance, Pfizer’s dividend yield was 3.44%, with each shareholder receiving $1.60 per share – distributed quarterly.
These give the company an effective P/E ratio of 9.86. It also has a quick ratio of 1.37 (as of September 2022).
Pfizer Historical Price Performance
Pfizer went public in June 1942 – close to a century after its founding. At the time, 240,000 shares of common stock were availed to the public via the New York Stock Exchange (NYSE). Since then, PFE shares have undergone multiple stock splits – with the six most recent taking place within the last four decades. This has every PFE stock bought before 1980 divided into 50 equal shares today.
The drug maker’s share price remained below $10 (adjusted for stock splits) until 1995. They, however, started rallying soon after the acquisition of SmithKline Beecham’s animal health business, which made Pfizer a world leader in the production of both human and animal pharmaceuticals.
The stock’s significant break would, however, come with the launch of Viagra (Sildenafil Citrate) in a1998. This, plus the dot.com bubble taking place at the time, saw PFE shares rally by close to 400% between 1997 and 1999 – breaking above $45.
The growth was followed by a slow downtrend throughout the next decade. This wiped off the dot.com and Viagra gains and had PFE shares trading around $10 in the first quarter of 2009. It took a streak of mergers, acquisitions, expansion of business divisions, and revolutionary drug discoveries in the decade that followed to pull Pfizer off this dip – trading between $20 and $40.
Pfizer’s biggest break, however, landed in 2021 after the drug maker’s Covid-19 vaccine was approved for mass distribution by the FDA. This saw PFE’s stock rally by close to 200% in the year to set the current all-time high of $60 in mid-December.
Twelve months later, Pfizer has only dropped 6% of this stock price. This incredible performance in an extended bear market is a testament to investor confidence in Pfizer Inc. and its stock.
Factors Affecting Pfizer Share Price
But can Pfizer sustain this resilient price action in 2023 and beyond? What factors can we expect to have the most impact on PFE’s stock price in the year? We have identified a few, and they include:
- Covid-19 vaccine sales: Covid-19 vaccine sales have had the most impact on Pfizer’s annual revenues, stock price, and dividend history. If the company continues posting increased vaccine sales, you can expect the PFE share price to sustain current resilience. It may even rally to a new high if the bear market dissipates.
- Financial growth: Pfizer is both a growth and dividend stock. You can, therefore, expect further revenue growth and high dividend yields to continue pushing up its stock price.
- Performance of subsidiaries: Pfizer has invested heavily in different mergers and acquisitions. You can expect the performance of these companies and their stock price to continue having a direct impact on PFE stock price in 2023 and beyond.
- New pharmaceutical breakthroughs: Pfizer’s share price has recorded the most growth after the discovery and launch of every revolutionary drug. It jumped in 1998 after the Viagra launch and post-Covid-19 vaccine approval. Watch out for the launch of equally ground-shaking drugs, vaccines, and other treatment options in future.
- Possible mergers and acquisitions: Future mergers and acquisitions will also have a direct impact on Pfizer Inc. and its stock price.
Your capital is at risk. Other fees apply.
Step 3: Open a Share Investor Account and Buy Pfizer Stock
Do you want to jump straight into buying Pfizer shares right away? Follow this beginner’s guide that shows you how to buy your first PFE stock on the all-popular eToro stock brokerage.
Open a stock broker account
On your browser, open the official eToro website or download the eToro mobile trader app on your app store. Click the “Join Now” icon and complete the user registration form that pops up. You will also need to choose a unique username for the account and create a strong password.
Verify your identity
eToro will also demand that you verify your identity by submitting a copy of your government-issued identification document before you can make a deposit or start trading. Simply send them a copy of your driver’s license or passport.
Log into your approved share investor account and tap the “Deposit Funds” icon. On the funding tab that pops up, choose one of the supported payment methods. Follow the prompts to fund this account with at least $10.
Buy Pfizer stock
After the cash reflects in your trader account, click on “Discover” to see the assets supported on eToro. Choose “Stocks”, use the search button to find Pfizer shares and tap the “BUY” button against the stock. Customize the investment by indicating how much you wish to invest in Pfizer or the number of PFE shares you want to buy. Hit the “Open Trade” button to execute the investment.
Your capital is at risk. Other fees apply.
Pfizer (PFE) Stock’s Strengths And Weaknesses
This far, you know where to buy Pfizer shares, how the company works, factors that should influence your buy/sell decisions, and how to buy Pfizer shares.
But is Pfizer worth buying today? You need to answer this question before hitting the buy button against the asset on any brokerage.
To help you arrive at the decision of whether to buy PFE or not, we have identified a few reasons why Pfizer is worth buying today. But we have also identified a few more why today may not be the best time to invest in the drug maker. Compare these and decide if PFE is a good investment for you today:
Reasons to Buy Pfizer Stock in 2023
- Resilience: Pfizer posted a resilient performance in an extended bear market of 2022 – only losing 6% while leading indexes like S&P shed 20%+. It may, therefore, be the best stock to hold during the upcoming recession-occasioned market crash.
- Regular dividend earner: Pfizer has consistently paid out dividends in the last four decades. You may, therefore, consider investing in the company if you are looking for a regular source of passive income.
- Strategic mergers and acquisitions: In the last two decades, Pfizer has been involved in multiple strategic mergers and acquisitions. This continued growth and the possible introduction of revolutionary drugs will help mitigate some of the revenue loss occasioned by dissipating Covid-19 revenues.
- Solid financials: Pfizer has a solid balance sheet, a strong, quick ratio and a lot of liquid cash. These will be more than enough to help it survive the looming recession.
Reasons to Buy Pfizer Stock
- Possibly overpriced: You may want to pause buying Pfizer stock today because it is potentially overpriced. It still is selling around its peak price and is susceptible to negative price correction if the threat of a global economic crisis materializes in 2023.
- Covid-19 gains won’t last forever: The hundred-fold gains in revenue, net income, and stock value can be attributed to the Covid-19 pandemic and the discovery of the Pfizer vaccine. But Covid-19 won’t last forever, and the regularity of vaccine intake will likely slow down. This will potentially send company stock and revenues back to pre-2019 levels.
Conclusion - How To Buy Pfizer Stock
There goes everything you need to know about how to buy Pfizer shares in 2023. Read through this guide again and complement it with your favourite broker-provided research materials about the drug maker.
Add on to the reasons why it is worth buying and research more on why it should remain on your stock watchlist for a tad longer. Analyze these deeply, then decide whether to invest in the pharmaceutical company. If this investment works for you, use the guide we have provided above to buy your first PFE stock.
eToro – Buy Pfizer Stock With 0% Commission
Open an account with eToro, deposit some funds with USD, and finally – buy Shares from just $10.
Your capital is at risk. Other fees apply.
FAQs About How To Buy Pfizer (PFE) Stock
How can I buy Pfizer stock today?
Find a regulated and highly reputable stock brokerage that lists Pfizer shares. Create a stock investor account with them, fund this account, and proceed to open a buy order for PFE shares.
What will Pfizer be worth in December 2023?
The many factors –both internal and external – affecting PFE share price make it impossible to accurately tell the direction PFE stock price will assume in the next 12 months. The most significant price determinants include the looming recession and slowed-down demand for the Covid-19 vaccine.
Is Pfizer worth buying in 2023?
Given the resilience with which Pfizer has withstood the 2022 bear market and its solid financials, PFE is considered a good buy in 2023.
Is Pfizer a Buy or Hold?
The general consensus among analysts and stock price forecasters for Pfizer is a HOLD in 2023.