The previous month was another difficult time for the markets, with the S&P 500 sliding 9%. Meanwhile, the index has already fallen 24% year to date, dragging several quality businesses along with it.

The silver lining for long-term investors is that many of these beaten-down stocks won’t remain down for long. That means buying flailing quality stocks today, as risky as it may sound, could offer you an opportunity to lock in several high-yielding businesses at cheaper valuations.

In the biotechnology and healthcare world, one of the most promising buys so far is Pfizer (PFE).

This company’s stock price has fallen by 16% in the past six months as Pfizer’s COVID-19 vaccine profits are anticipated to decrease. However, there’s something that investors appear to be overlooking.

The sales of the COVID-19 vaccine, Paxlovid, may gradually decrease, but the fact remains that its bolstering Pfizer’s pipeline. While its bottom line will expectedly show signs of decline as concerns around the coronavirus subside, its revenue won’t disappear completely.

Paxlovid sales are estimated to reach roughly $12 billion in the second half of 2022.

After all, health officials are continuing to administer booster shots, and there’s really no concrete answer if and when that will eventually end.

Moreover, Paxlovid is one of only two preferred antiviral treatments for patients at high risk for severe COVID-19. Based on CDC data, 50% to 60% of the US population aged 12 and above will experience one or more symptoms for progressing to a more severe stage of the disease.

This, along with the additional approvals in other countries, has reaffirmed the $22 billion revenue guidance for Paxlovid this 2022.

Needless to say, injecting this much cash flow into a company—even a large-cap business—would move the needle and put it in a very healthy financial position.

Pfizer’s continued strength amid the chaotic year can be seen in its second-quarter financial report in 2022. In fact, Pfizer reported its highest quarterly sales ever in its history in this quarter.

The company recorded its revenues increased to $28 billion, up by 47% compared to the $19 billion it reported in the same period in 2021. Its net income climbed by an impressive 78% year over year from $5.6 billion in the same period in 2021 to $9.9 billion.

This increase is driven by the substantial contributions of its COVID-19 products, Paxlovid and Comirnaty.

Hence, Pfizer has all but guaranteed that it can stay profitable and deliver outstanding results despite the anticipated decline in Paxlovid sales.

On top of that, the low earnings multiple indicates that a lot of bearishness was already built into the stock. But, the market’s fears seem to do little to slow down Pfizer.

Pfizer has increased its budget for R&D from $2.2 billion in the second quarter of 2021 to $2.8 billion in the same period in 2022.

The company has been aggressive in its decision to acquire several businesses in 2021 and 2022, growing its presence and expanding its portfolio.

More importantly, these new additions have transformed Pfizer into a more diversified company. For example, the company closed on the deal buying ReViral, which is a clinical-stage organization that focuses on treatments for the respiratory syncytial virus (RSV). The addition of ReViral’s resources provides a more solid direction for Pfizer’s ongoing RSV trials.

Aside from that, there are several additional opportunities for this drugmaker.

Pfizer is known to be able to consistently deliver positive free cash flow, which means it's in excellent shape to pursue expansion and growth opportunities while still comfortably paying out a solid dividend. Over the last five years, Pfizer has boosted its dividend by 25%.

So far, the company’s dividend yield is at 3.7%, which is more than twice the S&P 500 average of 1.8%.

Overall, Pfizer is a solid business with an expanding portfolio, a growing pipeline, tons of cash, and an impressive yield. It’s almost impossible to go wrong with this business, particularly at its low valuation these days.