Is Pfizer Stock Poised for a Major Rebound?

After the post-pandemic downturn left the pharmaceutical giant Pfizer looking like an industry laggard, a significant shift appears to be underway. While many retail investors remain hesitant, major institutional players are quietly accumulating shares. The bet centers on a new mega-trend: can the company's aggressive push into the profitable weight-loss sector finally rouse the stock from its slumber, or is this merely a temporary flash in the pan?

The catalyst for this renewed optimism is a clear strategic pivot. Pfizer's recent $10 billion acquisition of Metsera signals a direct assault on the lucrative GLP-1 anti-obesity drug market, currently dominated by the duopoly of Novo Nordisk and Eli Lilly. The company's development pipeline is now stocked with potential competing products, which analysts identify as the crucial lever to reignite growth. Compared to its highly-valued competitors, Pfizer's stock appears relatively inexpensive, with discounted-cash-flow models pointing to a significant undervaluation.

"Smart Money" Places Its Bets

This strategic realignment has not gone unnoticed. A notable correction in earnings expectations is fueling the confidence. Experts at Zacks Research have substantially raised their profit forecasts for 2026 and 2027. This positive revision is attracting so-called "smart money," with fresh data revealing that large investors have dramatically increased their holdings.

For instance, the Johnson Financial Group boosted its stake by over 40 percent in the last quarter. Similarly, the Korea Investment Corp. is placing multi-million-dollar wagers on the pharma conglomerate. These heavyweight investors are evidently speculating that the stock has bottomed out and a turnaround is imminent.

Should investors sell immediately? Or is it worth buying Pfizer?

Analyst Caution and a Silver Lining

Despite the excitement surrounding the new weight-loss medications, the broad consensus among market analysts remains one of skepticism. The prevailing rating for the stock continues to be "Hold." However, patient investors are offered a compelling consolation: Pfizer boasts a historically high dividend yield and has a track record of 16 consecutive years of dividend increases.

From a technical perspective, the equity is still wrestling with bearish sentiment. Currently trading at €22.21, the share price reflects the market's persistent doubts, showing a decline of approximately 14% since the start of the year. A genuine trend reversal would require the price to break through key resistance levels.

For investors, the situation presents a test of patience with a potential upside. The reliable dividend provides a measure of downside protection, but for a true re-rating, Pfizer must demonstrate a seamless integration of Metsera. If the new medications prove to be a success, the current period of undervaluation could swiftly become a thing of the past.