iBooyah.com: Pfizer (PFE) – Because we need drugs.
In a slowing economy, drug stocks are often one of the many favorites for investors looking to play it safe. My favorite play is Pfizer (PFE). In the last year, this stock has been beaten down by bad news within the sector, specially the lawsuit against Merck for the highly publicize case of heart attack caused by Vioxx.
The fact that Pfizer also makes similar drug was enough to cause PFE to also decline in value. Moreover, the slow growth was also brought into question. PFE 52 week low is $20.27 and is currently trading in the mid $26.00 range. In the past few weeks, the stocks have been moving upward from $23.00 to its current range. The support level appears to be mid $23.
In my view, this is a great opportunity to add a defensive stock to your portfolio. We would add more position in a heart beat if the stocks drops back to around $23. However, at the current level, we would less incline as the stock already had quite a run. However, if the economy continues to show signs of a slow down and if the market continues to sustain its recent rally, PFE could easily be in the low $30 by the end of this year. This would be a great stock to keep your eyes on.
