This stock closed on Tuesday at $17.56. Pfizer's stock price has been trading in a range in between $11-$19. However, PFE has recently begun upward price movement, with Friday's close being a new 52-week high. My opinion is that Pfizer (and several other large pharmaceutical makers) are coming off of a period of depressed stock valuation.
I have picked Pfizer because it satisfies the following criteria:
- Profitable for the last 3 years, and consistently profitable for several years (Source: S&P Stock Reports): In general, I will not recommend an unprofitable company for purchase.
- Current dividend yield of 3.64%: I like to know that if the stock price stagnates, that I will still receive some income for having my money tied up.
- Large capitalization stock: PFE has a market capitalization of over $140 billion. As a general rule, large companies are less volatile than smaller ones.