Michael Burry’s Latest Buys Include a 6.66% Yielding Pharma Giant and an Oil Stock Up 46% This Year. Here Is Why
Michael Burry’s Latest Buys Include a 6.66% Yielding Pharma Giant and an Oil Stock Up 46% This Year. Here Is Why
Alex SiroisFri, May 15, 2026 at 1:49 PM UTC
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Pfizer (PFE) trades at $25.75 with a rare 6.66% dividend yield and 9x forward P/E, offering upside.
Molina and Halliburton join Pfizer as defensive cash generators with structural edges through pricing power and margin stability.
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Pfizer (NYSE:PFE) at $25.75, Molina Healthcare (NYSE:MOH) at $186.80, and Halliburton (NYSE:HAL) at $41.29 trade at defensive, cash-generative valuations. Michael Burry purchased these shares for their real earnings and margin stability, and with inflation still pressuring margins across the market, names that generate cash, hold pricing power, and trade at sober multiples carry a structural edge.
Each of these companies sits in a defensive corner of its sector. Pfizer is a low-beta pharma giant lapping the COVID cliff. Molina is a Medicaid-focused managed care operator working through a self-described trough year. Halliburton is an oilfield services leader leveraged to a sharp recovery in crude prices.
Pfizer: A 6.66% Yield and a Forward Multiple That Smells Like a Rebound
Pfizer trades at a forward P/E of 9 against a trailing P/E of 20, with the gap reflecting analyst expectations for earnings expansion as the COVID drag fades. The 6.66% dividend yield is rare among large-cap pharma, and the 0.305 beta puts Pfizer among the least volatile names in the S&P 500.
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The non-COVID portfolio grew 9% operationally in Q4 2025, and management has flagged roughly 20 pivotal trial starts ahead, including obesity assets from the Metsera acquisition. The analyst target of $29.11 implies meaningful upside from here, and shares are up 25.15% over the past year. Targets are not guarantees, but 11 of 29 covering analysts rate the stock Buy or Strong Buy, with only 3 at Sell or Strong Sell.
Molina Healthcare: Buying the Trough
Molina cratered after Q4 2025, when adjusted EPS came in at a $2.75 loss against a $0.50 consensus. CEO Joseph Zubretsky has since framed 2026 as "a trough year for Medicaid industry margins", with embedded earnings exceeding $11.00 per share targeted for 2027 through 2029 as new contracts mature.
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The stock has already rallied 26.64% in the past month as buyers look past the trough. The analyst target sits at $182.25, roughly even with the current price, meaning upside comes from earnings recovery rather than multiple expansion. With a 0.848 beta and exposure to non-discretionary government healthcare spending, Molina is a contrarian inflation hedge.
Halliburton: Cash Flow Riding a Crude Recovery
Halliburton's Q1 2026 print delivered EPS of $0.55 against a $0.50 estimate on revenue of $5.40 billion. WTI crude has climbed from $57.97 in December 2025 to $100.32 in April 2026, a powerful tailwind for oilfield services demand.
Management returned 85% of free cash flow to shareholders in 2025 through $1 billion in buybacks and a steady $0.17 quarterly dividend. CEO Jeff Miller describes North America as in the "early innings of a recovery". Shares are up 46.83% year to date, and the $42.36 analyst target alongside 19 Buy or Strong Buy ratings versus 3 Sells points to continued institutional conviction.
Why Burry's Playbook Fits This Tape
At $25.75, $186.80, and $41.29, Pfizer, Molina, and Halliburton share a defensive valuation profile. Each name earns its keep through cash flow first. Pfizer's pipeline plus a near-7% yield pays investors to wait through the patent cliff. Molina's trough year resets the bar low enough that any rate normalization snaps earnings back hard. Halliburton's capital return discipline turns a cyclical business into a shareholder yield machine while crude trends higher.
The shared risk is a recession that drags all three down together. The shared edge is a valuation that already discounts the bad news. For investors hedging inflation with durable cash earnings, the Burry basket holds up at these prices.
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Source: “AOL Money”
