Learn The Stock Market And How to Trade

A Best Choice Stock Investment in a DOWN Market

Fundamentals:

Pfizer (Stock Ticker: PFE) is a company that develops, manufactures and markets prescription drugs. The price per earnings ratio (P/E) is currently 8 while the industry and sector hover around a 13.5. While growth expectations for Pfizer’s stock (4% per year) are lower than the competition’s (8%) I believe there are other reasons to buy this stock.

The dividend on this stock is nearly 7%. That’s 7% of your invested money being returned just for owning the stock. Add that to the 4% growth expectation and you’re looking at a “safe” 11% per year. This sure beats betting on the bank of your choice in today’s markets and this stock should fare even better.

Even considering yesterday’s 7% drop and just over 30% fall from this year’s high Pfizer has returned its shareholders 13% per year for the last 25 years and this doesn’t include dividends!

Technical Analysis (TA):

I’m going to keep this one simple, if you want to fine tune your buy in you’ll probably want to wait.

Here is a simple chart of the last year with 50 and 200 day moving averages. (Coming soon will be tutorials on what this and other easy to learn stock market techniques.)

Conclusions

I’ve already purchased Pfizer to be upfront and honest and I believe it’s a good long term potential for those looking for good investments for their retirement accounts or longer term low tax rate strategies.  I personally see Pfizer stock at $40 per share in three to five years.  However, how I made the price expectation is for another post on another day.

Related posts:

1. DOW Stock Pick
2. What To Do With Five Dollars? – Invest In Wendys!
3. Not The Market Police – COP Is A Good Buy For The Long Term