2 Stocks Down 30% and 27% to Buy and Hold

No pair of companies dominated the COVID-19 vaccine market quite like Pfizer (NYSE: PFE) and Moderna (NASDAQ: MRNA). Both saw their revenue and earnings skyrocket, along with their share prices, as governments rushed to buy millions of doses of their respective vaccines. However, this tailwind came to a screeching halt as the pandemic receded, and the market reacted accordingly.

Pfizer and Moderna have been trailing broader equities for the better part of two years. Still, there remain good reasons to invest in these stocks, at least for investors focused on the long term. Let’s find out more.

1. Pfizer

Investors became disenchanted with Pfizer because, beyond its declining coronavirus-related sales, the rest of the company’s lineup didn’t seem capable of driving solid top-line growth. Pfizer shares have fallen 30% over the past year.

However, the drugmaker has made tremendous clinical and regulatory progress over the past year. Pfizer has been on a roll, earning important approvals and rejuvenating its portfolio of medicines, which should help it get back to growth once the effects of its COVID-19 products wane.

Last year, Pfizer got regulatory approval for seven brand-new products. They include Litfulo, a treatment for alopecia areata (an autoimmune disease) for patients as young as 12 — the first such therapy in the U.S. to be approved for patients that young. Pfizer also launched one of the world’s first vaccines for the respiratory syncytial virus (RSV), Abrysvo.

Though these products will take some time to ramp up their sales, they should eventually contribute meaningfully to Pfizer’s growth. The pharmaceutical giant also beefed up its pipeline, most notably with the acquisition of the cancer-focused biotech Seagen for $43 billion. Pfizer could afford to splurge on buyouts partly due to the significant windfall from its success in the coronavirus market. Pfizer has 112 programs in its pipeline, including 31 in phase 3 studies.

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The drugmaker can handle a year or two of declining revenue and come out on the other side just fine. So, long-term…

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