The coronavirus vaccine discovery from other players like Moderna (NASDAQ: MRNA), AstraZeneca (NASDAQ: AZN), and Johnson & Johnson (NYSE: JNJ) makes investors hesitant of buying into the vaccine story.

Strong 2021 outlook supports Pfizer stock

The company has generated 12% year-over-year revenue growth in the December quarter, helping it end the year with $41 billion in revenues. On top of that, the pharmaceutical giant and its German partner BioNTech anticipate delivering at least 2 billion doses of coronavirus vaccine this year, which would bring almost $15 billion in annual revenue. The company anticipates 2021 revenue to hit $60 billion compared to the Wall Street consensus for $56 billion. Pfizer has also raised its earnings guidance for 2021. It now anticipates full-year non-GAAP earnings per share in the range of $3.10 – $3.20 compared to the prior guidance of $3.00 – 3.10.

Attractive valuations and hefty dividend yield are among the biggest catalysts  

The stock price sell-off, along with robust financial growth, has made its valuations attractive for new buyers. Its forward price to earnings ratio is hovering around 10 compared to the industry average of 23 times to earnings. The stock also looks undervalued based on the forward price to sales ratio of 3.14, well below the industry average of 8 times to sales. Moreover, the company’s hefty dividend yield also makes it a good play for dividend investors. Pfizer currently offers a dividend yield close to 4.5%, and it has raised dividends in the past eleven successive years.