COVID-19 has pushed drugmakers like Pfizer to the forefront of the global effort to find a cure for the pandemic, and its stock price has risen in a month or so after the company announced promising testing results for its COVID vaccine. Investors hoping for a large windfall from Pfizer, according to portfolio manager John Zechner, are likely to be disappointed.
According to Zecher, the issue with larger providers such as Pfizer is that due to their scale and production, it is difficult for them to discover products that will help them expand. The vaccine will give them a boost in growth, but only in the short term.
Investors seeking to get the most out of their investment dollars, Zechner added. Even with the stock’s enticing dividend, which currently pays a four-percentage rate, it is smarter for investors to bring their money into the trendy biotech sector rather than a big name like Pfizer.
There isn’t any significant progress there. Investors in the healthcare sector should consider moving further into the biomedical side and perhaps try to play something with a bit more traction to it. It may be a new field of growth where a little more risk is needed.
