Contrarian play - Pfizer - The Stock Market News (2024)

FAQs

Is Pfizer stock a buy hold or sell? ›

Pfizer has 23.63% upside potential, based on the analysts' average price target. Is PFE a Buy, Sell or Hold? Pfizer has a conensus rating of Moderate Buy which is based on 4 buy ratings, 9 hold ratings and 0 sell ratings.

Contrarian investors believe that people who say the market is going up do so only when they are fully invested and have no further purchasing power. At this point, the market is at a peak. So, when people predict a downturn, they have already sold out, and the market can only go up at this point.

It's a rigorous practice that takes years to master and an investing style that can be easily derailed by the influence of short-term noise. Your portfolio will likely underperform, perhaps for a long period of time, before your contrarian investment strategy starts to pay off.

Momentum strategy is based on price continuation and contrarian is based on price reversals. Investors following momentum strategy buy past winners and sell past losers whereas those following contrarian strategy sell past winners and buy the past losers.

Stock Price Forecast

The 16 analysts with 12-month price forecasts for Pfizer stock have an average target of 36.88, with a low estimate of 27 and a high estimate of 50. The average target predicts an increase of 35.69% from the current stock price of 27.18.

The dividend — it is secure, and we will continue our policy on [the] dividend as we have promised repeatedly," he said on the earnings call. Bourla has also made bold personal moves to back the company's outlook, including putting all of his pension into Pfizer's stock earlier this year.

Contrarian investing ultimately has the potential to give diversity and profitability chances that other investment strategies may not be able to, but it is not a strategy for everyone and necessitates careful evaluation and analysis.

Contrarian investors tend to face less competition for assets and stand to realize greater long-term gains. Theoretically, contrarian investing can also decrease downside risk since investors have purchased their assets at lower price points.

This strategy involves buying assets that are undervalued due to financial distress or market panic. Investors in distressed assets seek to identify companies with solid fundamentals that are temporarily struggling, with the expectation that they will recover and the assets will appreciate in value.

Warren Buffett once said, “The first rule of an investment is don't lose [money]. And the second rule of an investment is don't forget the first rule. And that's all the rules there are.”

Does Warren Buffett do value investing? ›

One of Benjamin Graham's disciples was Warren Buffett, the most famous value investor of all time. Based on Graham's teachings, Buffett seeks out companies that are undervalued in the market but have solid business plans and can develop in the long run.

While selling stocks during a market downturn might make you feel better temporarily, doing so reactively because stocks are tumbling isn't a good long-term investment strategy. Volatility is a normal part of investing in the stock market, so occasional market selloffs should be expected.

This strategy works by shorting Jim Cramer's ten most-recommended tickers over the previous 30 days and hedging them with a long position in the market index. The method implements an equal-weighted portfolio, as well as a weekly rebalancing system in order to achieve the highest possible results.

The 5 Minute "Momentum" Trading Strategy

As the name suggests, the strategy helps the trader to find momentum bursts on short-term (5-minute) charts. There are two indicators used in this strategy, namely 20-period Exponential Moving Average (EMA) and Moving Average Convergence Divergence (MACD).

This strategy also known as momentum trading involves identifying market trends based on daily net changes. If a market exceeds its average daily move, you can consider trading in the direction of the trend.

So if you are looking for a stable dividend stock with a high yield and modest growth potential, you might want to consider buying Pfizer in 2024. However, if you are looking for a stock capable of consistently beating the broader market, you might want to look elsewhere.

Based on short-term price targets offered by 20 analysts, the average price target for Pfizer comes to $34.80. The forecasts range from a low of $27.00 to a high of $54.00. The average price target represents an increase of 32.22% from the last closing price of $26.32.