Wait to Buy the Pfizer Selloff

Why investors should wait before buying the Pfizer dip

Digital Content Manager
Jan 3, 2023 at 10:03 AM
facebook X logo linkedin


While the broader market is kicking off the new year on a high note, Pfizer Inc. (NYSE:PFE) is clinging close to breakeven. Last seen down less than 0.3% to trade at $51.08, the equity's 10-day moving average has reemerged as pressure, while a familiar ceiling at the $55 mark stopped the stock's fourth-quarter rally dead in its tracks. Investors might want to wait out buying the dip, however, as January tends to be a historically bearish month for PFE. 

This is per data from Schaeffer's Quantitative Analyst Rocky White, who complied a list of the 25 worst performing S&P 500 (SPX) stocks during the month. According to this list, seven of the past 10 Januaries have resulted in losses for Pfizer stock, which also averaged a 1.8% monthly decline during that time period, making it the second worst pharmaceutical stock on the list. From its current perch, a similar drop would put PFE at roughly $52.

A round of downgrades could be in the cards. Of the 10 analysts in coverage, seven call it a "strong buy." Plus, the 12-month consensus price target of $55.49 is an 8.1% premium to current levels. 

Now could be a good time to speculate on more downside for PFE with options. This is because the security sports a Schaeffer's Volatility Index (SVI) of 23%, which stands higher than just 4% of readings from the past year. In other words, options players are pricing in relatively low volatility expectations at the moment. 

 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI