Do you have these pharma stocks on your May 2022 watchlist?
With the slowdown in the US economy in the first quarter of the year, fears of a possible recession are beginning to emerge. Specifically, GDP fell 1.4% in the quarter, the first time it has contracted since the onslaught of the pandemic. Additionally, with continued headwinds in the market, such as inflationary pressures and uncertainty surrounding the war in Ukraine, investors may turn to safer areas of the stock market. As such, pharmaceutical stocks could make a viable game right now. Pharmaceutical stocks are part of the healthcare industry. And since health care is a necessity, the demand for health care products and services will always remain, regardless of the economy.
To take Pfizer (NYSE: PFE) for example. Last week, the company announced that it would open the first US trial site for its experimental gene therapy for a muscle wasting disorder. It comes after the FDA lifted its grip on a late-stage study. Somewhere else, Modern (NASDAQ: MRNA) recently asked the FDA to authorize its Covid-19 vaccine for children aged 6 months to under 6 years old. This is based on his data that the vaccine induced a strong neutralizing antibody response in the age group. Given the evolution of the pharmaceutical industry, here are four top pharmaceutical stocks to watch on the stock market today.
Pharmaceutical stocks to buy [Or Avoid] In May 2022
To start our list, we have Merck, a multinational pharmaceutical company. He has been an industry leader for over 130 years and has brought many life-saving medicines and vaccines to millions of people. It also continues to be at the forefront of research to prevent and treat diseases that threaten both humans and animals. This would include cancer, infectious diseases and emerging animal diseases. Over the past year, MRK stock has risen more than 25%. On Thursday, Merck released its first-quarter financials that significantly beat consensus estimates for profit and revenue.
The company posted revenue of $15.9 billion for the quarter, up 50% from a year ago and beating estimates of $14.68 billion. The company thanks to its Covid-19 treatment, molnupiravir, which accounted for 20% of the company’s revenue in the first quarter. As for its earnings, Merck raked in a net profit of $4.31 billion, an increase of 57% from $2.7 billion in 2021. As a result, earnings per share was 2.14 dollars, an 84% year-over-year increase that topped $1.83 per share. waiting. Looking ahead, Merck raised its 2022 earnings forecast to $7.24 to $7.36 per share on revenue of $56.9 billion to $58.1 billion. Given the impressive quarter, should you buy MRK shares?
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Eli Lilly and company
Another pharmaceutical title to watch is Eli Lilly and company (THERE IS). It is a leading pharmaceutical company that operates globally. For an idea of scale, the company has offices in 18 countries while its products are sold in around 125 countries. In short, the company’s portfolio includes treatments for various diseases, including diabetes, cancer, endocrine diseases and Covid-19, to name a few. Over the past year, LLY stock has seen gains of over 60%.
Yesterday, the pharmaceutical company released quarterly results that beat estimates. For starters, revenue grew 15% to $7.81 billion, largely due to volume growth of 20%. As for its profits, LLY reported a net profit of $2.37 billion, a massive 62% increase from $1.47 billion last year. Earnings per share were $2.62, up from $1.61 a year earlier. In addition to this, the company also made a notable announcement regarding its potential obesity drug, tirzepatide. Notably, the drug is able to help patients lose more than 20% weight in a late-stage clinical trial. Not to mention that tirzepatide is also being studied as a treatment for type 2 diabetes. All things considered, should you add LLY stock to your portfolio?
then, we have Gilead Sciences. In short, it is a biopharmaceutical company that focuses on the research and development of antiviral drugs. Flavors that are used to treat hepatitis B, hepatitis C and influenza. Additionally, Gilead is also a leader in the development of HIV drugs such as Truvada and Genvoya. Along with the aforementioned drugs, its strong portfolio includes breast cancer drugs and a coronavirus treatment, remdesivir. After yesterday’s closing bell, the company announced first quarter 2022 results.
Hopping in, revenue rose 3% to $6.59 billion. This increase in revenue is attributed to increased demand for its drugs Biktarvy and Veklury. Biktarby’s revenue increased 18% year-on-year to $2.15 billion. On the other hand, its Covid-19 drug, Veklury, rose 5% year-over-year to $1.54 billion. Subsequently, non-GAAP diluted earnings increased 4% from $2.04 per share to $2.12 per share. As for its full-year outlook, Gilead expects total product sales to be between $23.8 billion and $24.3 billion. And non-GAAP earnings per share are expected to be between $6.20 and $6.70. Overall, given Gilead’s strong quarter, should you invest in GILD stocks?
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BioNTech is a biopharmaceutical company that has pioneered new therapies for cancer and other serious diseases. As a result, the company leverages a wide range of computational discovery and therapeutic drug platforms for the rapid development of new biopharmaceuticals. Using its deep expertise in mRNA vaccine development and in-house manufacturing capabilities, the company has created one of the world’s first mRNA vaccines to treat Covid-19. On March 30, the company released its fourth quarter and full year financial statements.
Diving, revenue in the quarter rose more than 1,000% year-over-year to $6.16 billion on strong vaccine sales. In fact, BioNTech has sold over 2.6 billion doses of its vaccine to over 165 countries and regions around the world in 2021. This also includes over 1 billion doses to low- and middle-income countries. It has also signed orders for delivery in 2022 of up to 2.4 billion doses of vaccines. Additionally, net income for the quarter increased by more than 700% to $3.53 billion. Additionally, BioNTech announced that its global Covid-19 supply chain and manufacturing network now includes 20 manufacturing facilities across four continents. With that in mind, should investors be on the lookout for BNTX stocks?
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