Last year was undoubtedly a great period for Pfizer as the New York-based pharmaceutical company became the leading vaccine provider in many parts of the world. As a result, the firm’s share price outperformed the broader market, with investors betting on its growth potential due to the global prevailing opinion that mass vaccination is the only way to escape from the pandemic.

This year could be more beneficial for the firm, with the long-lasting Covid-19 repercussions acting as further tailwinds. More specifically, not only the demand for vaccines remains strong and is likely to increase even more as the company has asked the FDA to approve its jab for children under five years of age, but also Pfizer got authorization for its oral Covid-19 treatment, Paxlovid. The new anti-Covid pill might generate huge revenue since it is very likely to be used by both anti-vaxxers and the already vaccinated people.

Pfizer’s financials are expected to reflect that growth momentum continues to pick up even though the global outlook on Covid becomes more optimistic. The pharmaceutical giant is expected to post revenue of $24.02 billion for the fourth quarter according to consensus estimates by Refinitiv IBES, which would represent a massive year-on-year increase of 118%. Earnings per share (EPS) are estimated to fall to $0.84 from $1.34 last quarter, but still rise by 100% on an annual basis. As for any potential surprises, Pfizer beat earnings projections by 10.85% on average in the past four quarters.

Pfizer has other non-coronavirus products experiencing high sales growth as Q3 financial results depicted at least six products with significantly surging figures. For instance, Pfizer's anticoagulant Eliquis and cancer medicine Xtandi revenues soared 21% and 16% on a yearly basis, respectively. Furthermore, the European Commission recently approved Lorviqua, which took Pfizer more than 10 years to develop and is considered to be the only effective treatment for a specific type of lung cancer.

In other news, the firm reported more than $29 million of free cash flows last quarter, which could potentially help the company to fund the research and development of new innovative drugs in the near future. Additionally, this large dry power might enable Pfizer to proceed with fresh collaborations or even takeovers within its sector. Apart from that, the renowned drugmaker is already working on 94 clinical programs, 29 of which are either awaiting regulatory approval or are in the last stage of testing. Thus, these new launches are going to offset the losses from the upcoming expiration of some significant patents and could even generate higher revenues.

Pfizer has a reasonable valuation considering its high growth prospects. The firm has a trailing 12-month price to earnings (P/E) ratio of 12.7 (as of February 3, 2022), while pharmaceuticals’ average is -10.8. Moreover, its forward 12-month P/E ratio is currently at 6.5, with its sector posting an average of -7.6. Therefore, Pfizer is amongst the few profitable companies in the sector.

Another positive sign for Pfizer is that its valuation remains low against the vaccine-producing companies relative to which, it also has greater growth potential outside the Covid market.

From a technical perspective, Pfizer stock has been experiencing a pullback in the last two months and is currently trading below its 50-day simple moving average (SMA), despite the impressive performance in the past year. Thus, if earnings disappoint, the recent decline might continue and the price could seek initial support at the $51 region, a violation of which would turn the focus to the $46.5 hurdle.

On the other hand, stronger-than-expected results coupled with encouraging 2022 guidance could propel the stock towards the $57.5 barricade. If buying interest intensifies further, then the next obstacle could be met at the all-time high of $61.5.