Pfizer (PFE) is a leading international pharmaceutical company that can trace its history back more than 170 years; its business units include Oncology, Inflammation & Immunology, Rare Disease, and Vaccines, notes Gordon Pape, editor of Internet Wealth Builder.

Everyone knows name Pfizer these days; it was the first company to have a COVID vaccine approved for general use. That vaccine — developed along with partner BioNTech (BNTX) — has proven to be highly effective with minimal side effects.

For a company that has had so much positive press, Pfizer’s share price has been a disappointment. It’s up only about $2 since the start of the year and just 9.5% since it was recommended.

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The company reported strong first-quarter sales of $14.6 billion, a 43% increase over the same period a year ago. Much of that growth was fueled by sales of the COVID-19 vaccine, which accounted for $4.9 billion in revenue. However, sales were up in all of the other main corporate divisions as well.

Adjusted income was $5.3 billion ($0.93 per share) compared with $3.5 billion ($0.63 a share) in the same period of 2020. That’s a 47% increase on a per share basis.

The stock pays a quarterly dividend of $0.39 per share ($1.56 annually), to yield 4% at the current price. Shareholders who elected to hold stock in Viatris Ltd., a company that incorporates Pfizer’s old Upjohn division, have also started to receive an $0.11 quarterly payment.

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The company recently completed new vaccine supply deals with the European Union and has increased its sales guidance for this year to $70.5-$72.5 billion, a big jump from the previous forecast of $59.4-$61.4 billion. Earnings per share in 2021 are expected to be $3.55-$3.65, up from the previous projection of $3.10-$3.20.

It’s difficult to understand why Pfizer isn’t doing better. Some of its patents expire soon but, despite that, revenues are booming thanks mainly (but not exclusively) to the vaccine.

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The shares pay a decent dividend, the p/e ratio is a reasonable 19.62, and the beta (a risk measurement) is low at 0.67. The stock represents good value at this price.

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