NEW YORK (TheStreet) -- Pfizer (PFE) shares are rising 0.73% to $34.43 in early market trading on Monday after the global pharmaceutical company acquired two meningitis vaccines from GlaxoSmithKline (GSK) for $131 million.
Pfizer will acquire single-dose meningococcal vaccines Nimenrix and Mencevax from GSK, both of which are sold outside of the U.S. and had combined global sales of $54 million last year.
The purchase of the two vaccines "will allow us to more completely respond to meningococcal disease outbreaks," said Pfizer Vaccines president Susan Silbermann, according to the Wall Street Journal.
TheStreet Ratings team rates PFIZER INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate PFIZER INC (PFE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The current debt-to-equity ratio, 0.53, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, PFE has a quick ratio of 1.81, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for PFIZER INC is currently very high, coming in at 86.14%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, PFE's net profit margin of 21.87% significantly trails the industry average.
- PFIZER INC has improved earnings per share by 8.6% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PFIZER INC reported lower earnings of $1.42 versus $1.65 in the prior year. This year, the market expects an improvement in earnings ($2.03 versus $1.42).
- You can view the full analysis from the report here: PFE Ratings Report