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Guilfoyle: Pfizer Is a Long Position

Pharmaceutical giant is well positioned as latest variant of coronavirus spreads.

Pfizer  (PFE) - Get Pfizer Inc. Report will be one of the biotech companies that will help combat the new strain of the coronavirus, making it a good long position for investors, argues Real Money Pro’s Stephen “Sarge” Guilfoyle.

The stock is a good addition to a portfolio because its share prices are not volatile and over a five year window, Pfizer generates a 0.67 beta, he wrote in a recent Real Money Pro column. Shareholders also receive $1.56 per year or a yield around 3% to own it.

“That's what I refer to Pfizer as ‘Old Reliable,’"Guilfoyle wrote. “My plan? Simple. Same as it has been since the start of this pandemic when I predicted that PFE would be first to market with a vaccine. Now, the firm has also created what appears to potentially be the most effective antiviral for those already infected. That plan is to stay long this name going forward. The virus is still in charge, and Pfizer can be flexible (with BNTX) and produce in mass.”

The new variant of the SARS-CoV-2 coronavirus first identified in Botswana, has quickly spread around the globe, with the first U.S. case reported Wednesday. The company has produced “what appears to potentially be the most effective antiviral for those already infected,” he wrote.

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During the third quarter the company reported earnings rose by 86% and revenue rose by 134%. Its COVID vaccine, Comirnaty, added the large increase in revenue. Without the vaccine, Pfizer's sales rose only 7% year over year. The company increased their full-year revenue guidance to $81 billion to $82 billion from $78 billion to $80 billion.

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