How To Earn $500 From Pfizer Stock With Shares Trading At 52-Week Low

Zinger Key Points
  • Biden's Inflation Reduction Act lets Medicare negotiate drug prices, impacting pharma giants such as Pfizer.
  • Eliquis, sold by Pfizer and Bristol-Myers, is on the negotiation list, which has made investors nervous.

President Joe Biden’s Inflation Reduction Act, which allows Medicare to negotiate the price of some prescription drugs, remains the talk of the town as investors sell off shares in pharmaceutical companies such as Pfizer Inc. PFE because drugs associated with the companies are on the negotiation list.

Eliquis, a blood-thinner sold by Pfizer in conjunction with Bristol-Myers Squibb Co BMY, is one of the drugs on the list.

If Cantor Fitzgerald analyst Louise Chen is right, investors shouldn't be worrying as much as they are. Reiterating an Overweight rating on Pfizer with a $75 price target three times in three weeks, Chen's insights could nullify concern about Pfizer's near future.

"I think right now in the short term, none of these named drugs will have a big impact relative to what the Street was thinking for these companies," Chen said last week in a CNBC interview.

She said that while products like Eliquis are high-profile, the real impact might not be seen until 2028 or 2029.

"Bristol and Pfizer have a product, Eliquis... Eliquis is slated to go generic. So it is something that has already been anticipated in the models on the Street," she said.

With Pfizer currently trading near its 52-week low and Chen's price target indicating a potential 117.99% upside for the stock, not considering the dividends, it's an opportunity investors might not want to miss.

Read Also: How To Earn $500 A Month From Johnson & Johnson Stock

By The Numbers: Using $34.42 per share as the base number and with a yield of 4.77%, here's how you can earn $500 a month from the stock.

To rake in $500 per month ($6,000 annually), you'd need to buy about 3,655 shares, which would run you about $125,786. However, for those eyeing a more humble monthly gain, 731 shares for a total of $25,157 would yield you $100 per month.

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. If the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
PFE Price Action: Pfizer shares closed Wednesday down 2.85% at $34.37, according to data from Benzinga Pro. The stock has traded in a 52-week range of $34.26 and $54.93.

Read Next: How To Earn $500 A Month From Ford Stock As Car Prices Skyrocket

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Posted In: Analyst ColorLarge CapLong IdeasNewsDividendsHealth CarePrice TargetReiterationMarketsAnalyst RatingsTrading IdeasGeneralCantor FitzgeraldeliquisExpert IdeasInflation Reduction ActJoe BidenLouise Chen
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