3 pharma stocks to buy long-term
Despite the current global logistical stalemate, the pharmaceutical industry has generated significant revenues in various segments of diagnostics, research and healthcare over the past year. With the emergence of new variants of COVID-19 causing occasional increases in cases, and with an increase in chronic diseases worldwide, the pharmaceutical industry is expected to grow. Additionally, the growing medical needs of an aging population and constant industry innovations are expected to drive the long-term growth of the industry.
Increasing rates of collaborations with pharmaceutical companies, accurate digitized diagnostics and increasing volume of biomedical trials are expected to contribute to the growth of the global pharmaceutical industry. According to a report by ResearchAndMarkets, the global pharmaceutical manufacturing market is expected to reach $813.31 billion in 2026, growing at a steady pace. 12.3% CAGR of 12.3%.
So, given these factors, we think it might make sense to bet on quality pharmaceutical stocks Johnson & Johnson (JNJ), Pfizer Inc. (PFE) and Teva Pharmaceutical Industries Limited (TEVA) to take advantage of the growth. long term in the industry. .
Johnson & Johnson (JNJ)
Based in New Brunswick, New Jersey, JNJ researches, develops, manufactures and sells a range of healthcare products worldwide. It operates through three segments: Consumer Health; Pharmaceutical; and medical devices.
On November 10, 2021, JNJ agreed with the US government and Gavi to deliver its single-shot COVID-19 vaccine, COVAX Humanitarian Pad. Paul Stoffels, MD, Vice Chairman of the Executive Committee and Chief Scientific Officer, said, “We believe our single-shot COVID-19 vaccine has a critical role to play in conflict zones and other humanitarian settings that cannot be achieved by the government. vaccination campaigns, and we are proud to be part of this effort to protect the world’s most vulnerable people.
JNJ’s sales increased 10.7% year over year to $23.34 billion in the third quarter of fiscal 2021. Its gross profit was $16.09 billion , up 14% year-on-year. And its non-GAAP net income was $3.67 billion, up 3.2% year-over-year. Additionally, its non-GAAP PES settled at $2.60, up 18.2% year-over-year.
Analysts expect JNJ’s revenue and EPS to grow 3.8% and 5.8% year-over-year, respectively, to $97.88 billion and $10.37 for the year. fiscal year 2022. In addition, it has exceeded consensus EPS estimates in each of the last four quarters. Over the past year, the stock has gained 1.8% in price to close yesterday’s session at $165.25.
JNJ’s strong fundamentals are reflected in its POWR ratings. The stock has an overall A rating, indicating a strong buy in our proprietary rating system. POWR ratings rate stocks on 118 separate factors, each with its own weighting.
JNJ has a B rating for Growth, Value, Stability, Sentiment, and Quality. Within the medical and pharmaceutical industry, it is ranked #1 out of 188 stocks. Click here to see additional POWR ratings for Momentum.
Pfizer Inc. (DFP)
Leading biopharmaceutical company PFE in New York offers drugs and vaccines in a variety of therapeutic areas, including cardiovascular, metabolic, pain, biologics, small molecules and immunotherapies.
On December 8, PFE and BNTX announced that a three-shot course of their COVID-19 vaccine could neutralize the new omicron variant in a lab test in an early signal that booster shots could be crucial protection against infection with the variant.
PFE’s revenue increased 134.4% year-over-year to $24.09 billion for the fiscal third quarter ended September 30, 2021. While its adjusted revenue increased 132.7% year-over-year to $7.69 billion, its adjusted EPS was $1.34, up 127.1% year-over-year.
Analysts expect PFE’s revenue to grow 19.7% year-over-year to $882.94 billion in its fiscal year 2022. In addition, its EPS is also expected to increase by 38. 8% year-over-year to reach $52.71 in fiscal 2022. Over the past year, the stock price has gained 48.1% to close the trading session from yesterday at $54.05.
PFE has an overall A rating, indicating a strong buy in our proprietary rating system. It has an A rating for growth and a B rating for value and quality. Within the medical and pharmaceutical industry, it is ranked #9. Click here to see additional POWR ratings for momentum, stability, and sentiment for PFE.
Teva Pharmaceutical Industries Limited (SUITS YOU)
Based in Tel Aviv-Yafo, Israel, TEVA is a pharmaceutical company that develops, manufactures, markets and distributes generic drugs, specialty drugs and biopharmaceuticals in North America, Europe and internationally.
On November 25, Quantum Genomics announced an exclusive licensing agreement with TEVA’s subsidiary, Teva Israel Ltd., to commercialize firibastat in Israel. This collaboration could help increase the company’s revenue.
For the third quarter ended September 30, 2021, TEVA’s generics sales for its European segment were $895 million, up 8.6% year-over-year. Its non-GAAP net income was $651 million, up 2.2% year-over-year. Additionally, its non-GAAP EPS rose 1.7% year-over-year to $0.59.
TEVA’s fiscal 2022 revenue is expected to reach $16.32 billion. Its EPS is expected to increase 4.4% year-over-year to $2.63 for its fiscal 2022. last month, the stock price gained 7.6% to close yesterday’s price. trading session at $8.64.
As part of the POWR ratings, TEVA was assigned an A rating for value and a B rating for growth. The stock is ranked No. 35 in the medical – pharmaceutical industry. Click here to see additional POWR ratings for TEVA (stability, momentum, feeling and quality).
Click here to view our report on the healthcare sector
JNJ shares were trading at $166.79 per share Friday morning, up $1.54 (+0.93%). Year-to-date, JNJ is down -2.50%, compared to a -5.85% rise in the benchmark S&P 500 over the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master’s degree in economics, she helps investors make informed investment decisions through her insightful commentary. Following…
