Why Pete Najarian Thinks Pfizer Has 'A Lot More Room To The Upside'

The U.S. Food and Drug Administration on Wednesday authorized the emergency use of Paxlovid, Pfizer Inc's PFE COVID-19 oral antiviral treatment.

"Given the circumstances that we are dealing with right now ... I think this is huge," Market Rebellion co-founder Pete Najarian said on CNBC's "Fast Money Halftime Report."

See Also: Pfizer's Paxlovid Scores FDA Approval, First Oral Antiviral For COVID-19 In US

Health officials have warned the surge in COVID-19 cases could continue as people begin traveling for the holidays due to the omicron variant's heightened transmissibility. Investors have been anticipating the authorization of PAXLOVID, the first drug that newly infected individuals can take at home to avoid hospitalization.

Najarian told CNBC he has seen repeated unusual option activity in the name since the end of November. On Tuesday, traders were purchasing $62 strike Pfizer calls, he noted: "They continue to come after this stock in a positive way."

The entire health care industry still has a lot of upside potential from current levels, according to Najarian. He has owned Pfizer shares for a while and plans to continue to hold because of the quality of the company's balance sheet.

"It's just an absolute home run," Najarian said. "I'm going to hold onto this name. It's not overpriced just because it's gone up as much as it has. I think this is one of these names that absolutely has a lot more room to the upside."

PFE Price Action: Pfizer has traded as high as $61.71 and as low as $33.36 over a 52-week period.

The stock was up 1.47% at $59.81 at time of publication.

Photo: mike_ramirez_mx from Pixabay.