Analysts say they have recently published a list of eight of the most underrated healthcare stocks. In this article, we'll look at where Pfizer Inc. (NYSE: PFE) plays against other most underrated healthcare stocks, according to analysts.
Medical prices and spending are rising in the US. According to the Centers for Medicare and Medicaid Services, healthcare costs in the United States reached between 7.5% and $4.9 trillion between 2022 and 2023. The healthcare sector accounted for 17.6% of the US economy in 2023, up 17.4% from 2022. Two major drivers of this rise are the expansion of private health insurance and Medicare.
More and more US companies are turning to more and more companies, as they are asking China to trade on the next promising chemicals, if the impact of tariffs on this ongoing trend is a major point of conflict in healthcare businesses, whether obese or in cancerous regions. On February 7th, Versant Ventures Managing Director Carlo Rizzuto discussed how it will affect CNBC's “Fast Money” healthcare involvement. According to Rizzuto, tariffs could have two effects on the industry. The first is a product created in China and released to the US or other markets. To understand how tariffs affect such trade operations, the industry needs to observe how tariffs are implemented in the market.
Second, and more specifically, China serves as the main foundation for contract production and research in the US health sector. So anything that increases its costs can make the market even more difficult. Management in the healthcare industry, already under pressure from investors, will not improve with increased costs.
The majority of medical institutions use Chinese CROs or manufacturing partners in some capacity during the research and development stage. Therefore, it has a major impact on how pharmaceutical and biotech businesses operate in the country. This pattern occurs very often in businesses of all sizes.
Simply put, healthcare companies are unable to reissue all of their externalized R&D and production to the US, as they do not have the infrastructure needed to manage relocations. As a result, it is difficult to see how such a large-scale reuse occurs. The cost to achieve this goal can be calculated linearly by the number of tariffs implemented.
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McKinsey predicts healthcare EBITDA will increase from a baseline of $676 billion in 2023 to $987 billion in 2028. Software platforms are essential to the healthcare ecosystem as they allow payers and providers to function more efficiently in complex environments.
Technological innovations (such as generator AI and machine learning) continue to provide opportunities for stakeholders across all fields by automating processes, fostering data connectivity, and generating actionable insights. According to McKinsey, special pharmacy revenues are expected to grow significantly due to higher utilization and pipeline expansion (like cancer). Increased use of specialty drugs has contributed to the continued growth of the profit pool of specialized pharmacies.
Our methodology uses a screener to filter healthcare stocks by forward PE ratios below 15, with analyst rise of over 20%. We then ranked stocks based on analysts as of March 30, 2025.
Why are hedge funds interested in the stocks they accumulate? The reason is simple. Our research shows that mimic the top stock picks of the best hedge funds can outperform the market. The quarterly newsletter strategy has chosen 14 small and large caps per quarter, returning 373.4% since May 2014, surpassing the benchmark by 218 percentage points (see more here).
Is Pfizer Inc. (PFE) the most underrated medical stock, according to Analyst?
A medical technician wearing a mask that mixes protective gloves and biopharmaceutical solutions.
Price target rise: 31.92%
Pfizer Inc. (NYSE: PFE) stands fifth on the list of the most undervalued stocks. It is a global biopharmaceutical company that manufactures, develops, sells and sells biopharmaceutical products from around the world. It promotes health, prevention, treatment and treatment in development and emerging markets. The company wants to become the leading cancer organization in the world. It is currently the third largest biopharma company in the United States due to cancer, with plans to continue improving over the next decade.
The dividend yield is 6.3%, with Pfizer Inc. (NYSE: PFE) surpassing most of its blue chip stock. Its management recently announced a 2.4% increase in early December, reaffirming its intention to reissue this dividend and support and grow it.
Pfizer Inc. (NYSE: PFE) is focusing on the oncology pipeline for future growth by adding multiple new blockbuster drugs to its portfolio as part of its 2030 target. To expand the pipeline, businesses are expected to continue looking for opportunities to buy promising pharmaceutical companies. It spent a ton of pandemic profits on the $43 billion purchase of oncology-focused biotech startup Seagen.
This approach has provided good results as revenue growth for management projects in 2025 ranges from 10% to 18%. Additionally, analysts predict that the company's revenue will increase by approximately 14% per year over the next three to five years.
Overall, PFE ranks fifth in the list of the most underrated health stocks, according to analysts. We acknowledge the potential of healthcare companies, but our belief lies in the belief that AI stocks offer higher returns and hold a greater commitment to doing it within a shorter time frame. If you're looking for AI stocks that are more promising than PFE, but are trading at less than five times the revenue, check out our report on the cheapest AI stocks.
Read next: According to the billionaire, buy 20 best AI stocks to buy now and the best best stocks to buy now.
Disclosure: None. This article was originally published on Insider Monkey.
