Pfizer Ltd. is Rated Sell by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO’s 'Sell' rating for Pfizer Ltd. indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new positions at this time. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. While the rating was assigned on 29 December 2025, it is important to understand how the stock stands today, as market conditions and company performance evolve continuously.

Quality Assessment

As of 12 February 2026, Pfizer Ltd. maintains a good quality grade. This reflects the company’s solid operational foundation and consistent profitability. The return on equity (ROE) stands at a robust 19.8%, signalling effective utilisation of shareholder capital. However, the company’s long-term growth remains modest, with net sales increasing at an annual rate of just 2.39% over the past five years, and operating profit growing at 7.42% annually. These figures suggest that while Pfizer is a stable business, its growth trajectory is relatively slow compared to more dynamic peers in the pharmaceuticals and biotechnology sector.

Valuation Considerations

Valuation is a critical factor behind the 'Sell' rating. Currently, Pfizer Ltd. is classified as very expensive, trading at a price-to-book (P/B) ratio of 6.2. This elevated valuation implies that the market has high expectations for the company’s future earnings growth. Despite this, the stock is trading at a discount relative to its peers’ average historical valuations, which may offer some cushion. The price-earnings-to-growth (PEG) ratio is 1.3, indicating that the stock’s price is somewhat aligned with its earnings growth rate, but not sufficiently compelling to justify a more positive rating. Investors should be wary of paying a premium for a stock with limited growth prospects.

Financial Trend Analysis

The financial trend for Pfizer Ltd. is currently flat. The latest half-year data reveals some operational challenges, including the lowest inventory turnover ratio at 4.75 times and a debtor turnover ratio of 9.74 times, both indicating slower asset utilisation. While the company’s profits have risen by 23.8% over the past year, the overall growth in sales and operating profit remains subdued. The stock has delivered a 25.21% return over the last year, which is respectable, but this performance is not fully supported by underlying financial momentum. Flat financial trends suggest limited catalysts for significant near-term improvement.

Technical Outlook

From a technical perspective, Pfizer Ltd. is rated as mildly bearish. The stock’s price movement shows some weakness, with a one-day decline of 0.62% as of 12 February 2026. However, it has posted gains over longer periods, including a 10.13% rise over the past week and a 7.20% increase over the last month. Despite these short-term gains, the mildly bearish technical grade reflects caution due to potential resistance levels and lack of strong upward momentum. Investors relying on technical analysis may find limited conviction in the stock’s near-term price direction.

Summary for Investors

In summary, Pfizer Ltd.’s 'Sell' rating by MarketsMOJO is grounded in a combination of a very expensive valuation, flat financial trends, and a mildly bearish technical outlook, despite the company’s good quality metrics. For investors, this rating suggests prudence in holding or initiating positions, as the stock may face valuation pressures and limited growth catalysts in the near term. The current fundamentals as of 12 February 2026 do not support a more optimistic stance, and the stock’s performance should be monitored closely for any material changes in financial health or market sentiment.

Stock Performance and Market Context

Examining Pfizer Ltd.’s recent stock returns as of 12 February 2026, the company has experienced mixed performance across various time frames. The stock declined by 0.62% on the most recent trading day, yet it has gained 10.13% over the past week and 7.20% in the last month. Over three and six months, returns are more modest at 2.97% and 1.61% respectively, while the year-to-date return stands at 3.74%. Notably, the stock has delivered a strong 25.21% return over the past year, outperforming many peers in the pharmaceuticals sector. However, this price appreciation has not been fully matched by underlying sales growth, which remains slow.

Operational Efficiency and Asset Management

Operational metrics as of the latest half-year period highlight some inefficiencies. The inventory turnover ratio at 4.75 times is the lowest among comparable companies, indicating slower movement of stock and potential overstocking issues. Similarly, the debtor turnover ratio of 9.74 times is also at the lower end, suggesting slower collection of receivables. These factors can strain working capital and impact cash flow, which investors should consider when evaluating the company’s financial health.

Valuation in Sector Context

Pfizer Ltd.’s valuation remains a key concern. Despite a high price-to-book ratio of 6.2, the stock trades at a discount relative to the average historical valuations of its peers, which may offer some relative value. The PEG ratio of 1.3 indicates that the stock’s price is somewhat justified by its earnings growth, but not sufficiently attractive to warrant a 'Hold' or 'Buy' rating. Investors should weigh the premium valuation against the company’s modest growth prospects and operational challenges.

Implications for Portfolio Strategy

Given the current 'Sell' rating and the detailed analysis of Pfizer Ltd.’s fundamentals and market performance, investors may consider reducing their holdings or avoiding new investments in this stock until clearer signs of improvement emerge. The combination of expensive valuation, flat financial trends, and mild technical weakness suggests limited upside potential in the near term. However, the company’s strong ROE and respectable profit growth indicate that it remains a quality business, which could regain favour if operational efficiencies improve or valuation pressures ease.

Looking Ahead

Investors should monitor Pfizer Ltd.’s upcoming quarterly results and sector developments closely. Any acceleration in sales growth, improvement in asset turnover ratios, or positive shifts in technical momentum could alter the current outlook. Until then, the 'Sell' rating serves as a prudent guide reflecting the stock’s present challenges and valuation concerns as of 12 February 2026.

Unlock special upgrade rates for a limited period. Start Saving Now →