Why Pfizer Stock Was so Healthy in August

PFE rallied nearly 14% in August after the company posted second-quarter revenue of $15 billion against a $14.4 billion consensus and earnings per share of $0.77 versus the $0.68 estimate. Management raised full-year revenue guidance following the beat.

The drugmaker secured two regulatory wins during the month: the European Medicines Agency validated PFE's submission for a Lyme disease treatment, and the FDA approved an updated COVID vaccine. The approvals come as investors have grown impatient over the pipeline's ability to deliver new blockbuster products to offset patent expirations.

Analysts continue to view PFE as undervalued, citing the pipeline additions from recent acquisitions. The company has deployed capital through M&A to replenish its product portfolio, though the market remains skeptical about the timing and commercial potential of those assets.