Don't take this medicine   Sure, Pfizer's stock is cheap. But for that matter, so is the rest of the pharmaceutical industry. Nearly all the top drug stocks are trading at a sizable discount to their average trailing P/E ratio for the past five years. Although Pfizer has said that long-term studies of its other arthritis drug Celebrex haven't shown any significant safety issues, the additional scrutiny may weigh on the shares for some time. If Pfizer's dividend yield were higher, we'd be more willing to say the stock is worth the risk. But there are several other drug companies without Vioxx fall-out concerns offering a more lucrative income kick. So if you like the fundamentals for this industry, we'd suggest a different Rx than Pfizer for your portfolio.

1 2 3