Pfizer selloff overdone? patient growth investors could have good morning

Money Digest, Sept, 2002

Drugmaker Pfizer Inc. (NYSE: PFE; Recent price: $32) has come down so far from its high that it is as attractive as it has been in recent years. It has its most attractive price-earnings ratio in several years.

Pfizer is one of the strongest pharmaceutical companies in the world. While it does not have another blockbuster drug like Viagra in the pipeline, the company indeed has many attractive drugs in the pipeline in addition to its current lineup of drugs.

Pfizer's recent merger announcement with Pharmacia Corp. is another positive development. The valuation of the stock is attractive with the selloff after the merger. The combining of the two companies will also give Pfizer complete access to the fast-growing Celebrex and related compounds, which are used to treat arthritis.

Pfizer's business is strong and the company continues to invest more in research and development than its competitors. The company also continues to generate a healthy amount of cash flow. At current levels, Pfizer is an attractive buy for long-term growth.