Pfizer's Got Plenty of Upside

If I had to pick one drug stock to own for the next 10 years, it'd be Pfizer(PFE Quote). I mean, let's face it. This company has it all -- a tremendous pharmaceutical business and a bevy of blockbuster consumer products from Benadryl to Listerine to Zantac. The combination has the potential to provide investors with double-digit earnings growth for at least the next three to five years.

What makes me so optimistic?

Take a look at how some of its key pharmaceuticals are performing. In the third quarter, Lipitor (for cholesterol) sales jumped 37%, while Neurontin (for epilepsy) and Viagra (you know what that's for) reported year-over-year increases of 32% and 13%, respectively. Put simply, the company is, unlike many of its big name competitors, firing on all cylinders.

And although some may point out that its consumer business continues to struggle, Pfizer's ability to milk efficiencies out of its merger with Warner Lambert will more than pick up the slack. In fact, sources tell me that management's efforts to improve the company's product mix and reduce headcount at the acquired company will lead to consistent margin improvement through next year.

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