Pfizer Inc. (PFE), headquartered in New York, discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products. With a market cap of $134.9 billion, the company offers medicines, vaccines, medical devices, and consumer healthcare products for oncology, inflammation, cardiovascular, and other therapeutic areas.

Shares of this pharmaceutical giant have underperformed the broader market over the past year. PFE has declined 4.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 10.6%. In 2025, PFE stock is down 8%, compared to SPX’s 5.3% fall on a YTD basis. 

Narrowing the focus, PFE’s underperformance is also apparent compared to the Invesco Pharmaceuticals ETF (PJP). The exchange-traded fund has gained about 6% over the past year. Moreover, the ETF’s marginal dip on a YTD basis outshines the stock’s single-digit losses over the same time frame. 

PFE's underperformance can be attributed to the recent discontinuation of the obesity pill danuglipron due to safety concerns and declining sales of key products like Prevnar, Xeljanz, Eliquis, and Ibrance. The Medicare Part D redesign and loss of patent exclusivity in the future are also expected to impact sales. Additionally, setbacks like the declines in sales of COVID-19 products and the RSV vaccine have added to the challenges facing Pfizer. In a volatile macro environment, Pfizer has not provided estimates on the potential impact of tariffs and trade policy changes, unlike its competitors Johnson & Johnson (JNJ), and Merck & Co., Inc. (MRK). JNJ and MRK have estimated significant costs from tariffs, mainly impacting their MedTech businesses, which may also be the case for PFE.

On Apr. 29, PFE shares closed up more than 3% after reporting its Q1 results. Its adjusted EPS of $0.92 topped Wall Street expectations of $0.64. The company’s revenue was $13.7 billion, missing Wall Street forecasts of $13.8 billion. PFE expects full-year adjusted EPS in the range of $2.80 to $3, and expects revenue in the range of $61 billion to $64 billion.

For the current fiscal year, ending in December, analysts expect PFE’s EPS to decline 2.9% to $3.02 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 23 analysts covering PFE stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, 14 “Holds,” and one “Strong Sell.”

This configuration is less bullish than a month ago, with nine analysts suggesting a “Strong Buy.”

On Apr. 29, Jefferies Financial Group Inc. (JEF) analyst Akash Tewari maintained a “Buy” rating on PFE with a price target of $32, implying a potential upside of 31.1% from current levels.

The mean price target of $28.67 represents a 17.5% premium to PFE’s current price levels. The Street-high price target of $35 suggests an ambitious upside potential of 43.4%.