Pfizer (NYSE: PFE) had a disastrous 2023, with its share price collapsing by 44%. It was one of the S 500's worst-performing stocks last year. The company's COVID-19 revenue nosedived as the demand for vaccinations waned, and the drugmaker can no longer count on that being a strong growth driver for the business.

But with such a beaten-down valuation and Pfizer back to trading at 2020 levels, has the stock become too cheap of an investment to pass up? Is it only a matter of time before its shares rally again? What will happen this year?

The big reason Pfizer's stock could do well this year is its valuation. After such a bad showing in 2023, there's a possibility that the markets and investors were overly punitive on the stock and overreacted to the company's struggles. After all, a slowdown in revenue was expected as concerns related to the pandemic subsided.

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Source Fool.com