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Are Home Prices and Mortgage Rates Creating a Housing Crisis?

InvestTalk

# Full Transcript

**Podcast:** InvestTalk

## Participants

- **Luke Guerrero** (KPP Financial)

## Transcript

On Radio, on YouTube, streaming live on InvestTalk.com and for our podcast subscribers, this is InvestTalk, independent thinking, shared success. InvestTalk is made possible by KPP Financial, a registered investment advisor firm serving clients throughout the United States. Here is KPP Financial Portfolio Manager, Luke Guerrero.

Good afternoon, fellow investors, and welcome to the Friday, March 27th, 2026 edition of InvestTalk. I'm your host over this next hour before we head off into the sunset into the weekend, and we have yet another great show scheduled for you today. As always, the objective of this podcast is to help make you a better and more informed investor.

And so in order to do that, we will talk about today's market performance. We will run down those show topics that we have for you all. But first, let's tackle this caller question. Hey Justin and Luke, I'm calling today about Pfizer, ticker PFE. I'm trying to consolidate my portfolio, but I'm wondering if I should hold onto this one. I'm up 10%, have not held it for too long, but I think I may keep it as sort of a defensive stock. It is hanging in there year to date. Let me know your thoughts. Thank you very much.

Appreciate the show. Bye. Pfizer is of course a global biopharma name. They specialize in oncology, vaccines, inflammation, rare diseases, and more recently, COVID products. It's roughly $150 billion market cap company. And over the past year, it's ranged between about $20.90 per share and $27.94 per share, settling out today at $2,704.

Now last quarter, Q4 2025 revenue, about $17.6 billion. It was a beat. Adjusted earnings per share, $0.66, did beat the $0.56 consensus. On the full year, revenue was actually down 2% in terms of operational revenue, while non-COVID revenue was up about 6%.

They did guide to $59.5 to $62.5 billion in revenue for this upcoming year, and roughly saw about $5 billion from their COVID products. Over the past six months, we did see the stock bottom near about $21 per share in mid-2025 before recovering to where it is now. And really the catalyst for that bounce was their non-COVID portfolio showing real momentum.

Again, that's 6% operational growth year over year in Q4, while at the same time showing that the exemption from tariff revenue didn't hurt input costs as greatly as was expected. So you did have near-term margin pressures on one count, but in terms of the mid-long term, not too bad.

Now, the bull case here is, well, there's a bit of a dividend yield here, 6.4%. That's where it's been roughly in the 5% to 6% range since 2023. And a solid payout ratio. I mean, it's well covered, about a 58% payout ratio. You're seeing its non-COVID portfolio genuinely growing. On the downside, though, EPS is declining or set to decline even by their own guidance into 2026.

There's a patent clip for a lot of their COVID products. They ...

Are Home Prices and Mortgage Rates Creating a Housing Crisis?

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Are Home Prices and Mortgage Rates Creating a Housing Crisis?

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.