Pfizer Hits a New 52-Week High. Here's Why It's Not Too Late to Buy the Stock

One of the most surprising stocks in the healthcare sector this year has been Pfizer (NYSE:PFE). In recent years, it's struggled to gain traction, but in 2026 it has been outperforming the broader market. Heading into this week, it was up 18% since the start of the year, recently hitting a new 52-week high.

While hitting a high may worry some investors that the stock has gotten too expensive, that isn't the case with Pfizer. This is a healthcare stock that may still have a lot more room to rise higher. Here's why.

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The company is coming off a strong quarter

Last week, Pfizer released its latest quarterly numbers and showcased why investors who have looked past its stock could be making a big mistake. While its top-line revenue number was flat compared to the same period last year, what really stood out was the 32% growth it achieved in its recently launched and acquired products. It's a sign that the company's investments in recent years have been paying off and that the business is doing well despite challenges, including patent cliffs that may weigh on its operations in the near term.

While patent cliffs can be a concern, they are an inevitable problem all top drugmakers will face at one point or another. Historically, however, Pfizer has done an excellent job of growing both internally and through acquisitions, and its recent results suggest it's once again proving it can do so.

Pfizer's stock remains incredibly cheap

Another mistake investors may be making with Pfizer's stock is focusing too much on its trailing price-to-earnings (P/E) multiple of over 40. That, however, includes one-time expenses related to restructuring and impairment charges.

Its forward P/E multiple, based on analyst projections, is much more modest at just 10. That effectively removes the noise from its financials and gives investors a better idea of how the business is valued under normal, typical operations, without large expense items impacting its bottom line.

The healthcare stock remains incredibly cheap and could make for a great investment to buy and hold given Pfizer's encouraging growth portfolio and strong pipeline of drugs currently in development. Plus, it offers a fairly high yield of 5.9%.

Investors willing to buy and hold for years could make out well by hanging on to Pfizer's stock, as it may generate more gains and a ton of dividend income in the years ahead.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Pfizer. The Motley Fool has a disclosure policy.