Pfizer (PFE) has become ridiculously oversold at double bottom dating back to late 2022. RSI, MACD, and Williams’ %R are all oversold, as well. And from a current price of $40.81, we’d like to see PFE run back to $48 initially.
We also have to remember that the COVID-19 vaccine translates into a significant bump-up in free cash flows for Pfizer. The company has been using the cash in two important ways.
One, the company is investing heavily in research and development to speed up the existing product pipeline. And two, the company has been actively acquiring companies, having just announced a $43 billion agreement to buy Seagen—which will help PFE widen its offerings.