Pfizer Inc. (NYSE:PFE) stock tumbled after the New York-based pharma giant released earnings. Although the company beat earnings expectations, PFE revenue growth remained stagnant. This caused the stock to fall almost 5% as the stock price remained range bound.

Now, without significant growth or a popular drug that can drive revenues, investors increasingly see few reasons to buy PFE stock.

PFE Beat on Earnings But Missed on Revenues

PFE saw Q1 earnings per share (EPS) come in at 77 cents. The company beat EPS estimates by two cents and grew earnings from the 69-cent-per-share level seen last year. Its revenue of $12.91 billion showed a 1% growth rate from year-ago levels. Still, it missed Wall Street revenue estimates by $240 million.

PFE also reaffirmed 2018 guidance. The drug company still expects revenues between $53.5 and $55.5 billion for the year, with earnings between $2.90 and $3.00 per share.

The stock suffered throughout most the previous decade. Despite its addition to the Dow 30 in 2004, PFE lost 75% of its value. Since hitting its low 2009, PFE stock has enjoyed a steadier uptrend. However, the stock has stagnated since 2016. It hit a high of just above $37 in 2016. After the Q1 earnings release, it fell below $35 per share.

As a result of growing profits and the pause in stock price growth, the price-to-earnings (PE) ratio now stands at about 15. That compares well to the other Dow pharma component Merck & Co., Inc. (NYSE:MRK). It also stands as a lower PE than seen in peers such as Eli Lilly And Co (NYSE:LLY) and GlaxoSmithKline plc (ADR) (NYSE:GSK).

Drug Pipeline Remains a Challenge

However, as I pointed out in my analysis of PFE earnings in the last quarter, Pfizer doesn’t compare as well with its drug pipeline. Blockbuster drugs such as Lipitor and Viagra now have generic equivalents. Unfortunately for PFE stock investors, nothing came along to replace those drugs.

In fairness, PFE saw its most FDA approvals in the last ten years. However, the growth rates of current drugs Ibrance, Eliquis, and Xeljanz have not matched those of Merck’s best-performing drugs of the past.

And the lack of such a drug has shown up in revenue growth. Revenue only grew by 1% in this quarter, which showed a modest improvement over last quarter’s 0.5% revenue growth rate. Perhaps one of its recent approvals will become Pfizer’s next Lipitor. Still, I do not see an improvement in revenues coming until such a drug emerges.

The one area where PFE stock performs solidly is in its dividend. Pfizer has increased its dividend every year since 2011. It now stands at $1.36 per share per year, translating into a yield of about 3.9%.

Although it does not beat GSK’s 5.3% dividend yield, PFE stock should earn enough to maintain the dividend, even if its next blockbuster drug does not emerge for several more years. Still, if such a dry spell occurs, PFE stock will likely suffer further.

Bottom Line on PFE Stock

The latest earnings report confirms that without revenue growth or a popular new drug, growth prospects for Pfizer appear dim. PFE beat on earnings. However, the stagnant revenue growth of past quarters remains with the company. Though patent approvals have increased, PFE’s current new drugs have failed to match the popularity that Lipitor and Viagra enjoyed before going generic.

PFE’s lower stock price takes the dividend yield to about 3.9%. However, PFE stock has seen dramatic declines in its past, and bargain hunters will need to see a lower PE before buyers come in en masse.

Without the next Lipitor, few catalysts remain to drive significant revenue growth. Until that new, high-revenue drug appears, investors who want to own a big pharma stock will likely see bigger profits by investing in one of PFE’s peers.

As of this writing, Will Healy did not hold a position in any of the aforementioned stocks.