Pfizer is one of the largest pharmaceutical companies in the world and is ranked highly in the Fortune 500 list. Its financial strength allows it to conduct R&D on blockbuster drugs while its industry-leading salesforce offers the company the channels to distribute its innovative products. Pfizer has a basket of patent-protected drugs and is currently in the news for being the first company with a COVID vaccine approval. The long-term outlook for Pfizer was and continues to remain very positive.
The long term monthly chart for Pfizer shows a clear uptrend from 2010 to 2018-end. Since 2019, the stock fell by 32% over a 16 month period and broke the bottom of the long term trend. It stayed below the bottom trend line until December 2020, when it rose back above the trend line. A long position can, therefore, be entered with initial targets of $42 and $44 before the price testing the top of the long-term trend. A tight stop loss below the bottom trend line, at around $38, should offer a reasonable risk-reward ratio.
Position entered to our long term portfolio today. Entry point at $40.51 and stop loss at $29.40, 27% below entry point. Short-term to medium take profit is set at $51 giving a profit of 26%.
On the video and images above you will see the reason this stock was selected.
You will see the image is of a monthly chart of the stock showing the long-term upwards trend formed over the years. You will also see the entry point and the where the stop loss is placed. For more information please watch the video given.
Once it is time to move the original stop loss up you will see an additional image.