Pharmaceutical stocks, once pandemic favorites, have faced significant corrections.However, Pfizer's recent return to profitability and undervalued stock price hint at a potential rebound.Pharmaceutical stocks, once high-flying heroes of the COVID pandemic, have been facing a harsh reality check over the last couple of years. After a period of exceptional performance, the sector has seen a significant correction, with outflows continuing year-to-date.
Let's take a closer look at how this trend is impacting one of the most representative companies in the sector: Pfizer (NYSE:Pfizer, a global biopharmaceutical giant, is known for its research focus and diverse product portfolio. The company discovers, develops, manufactures, markets, sells, and distributes a wide range of biopharmaceutical products.
The health score is 3 out of 5, precisely because a return to growth is needed to point to an improvement in this key metric.Analysts currently believe the stock is undervalued, setting a target price of $31.92. But the question remains: do the fundamentals and underlying numbers support this claim?The stock's future hinges on the success of its new cancer treatments. Early indications suggest these treatments may propel Pfizer back to solid profitability.