Stock price when the opinion was issued
Many attempts to lower drug prices in the US, and every one of them has failed. Very highly entrenched business to deconstruct. But stocks will rerate on the noise. So how much downside would there be to revenue?
He wouldn't buy this here. Tariffs and the drug noise have provided opportunities to expand in the healthcare space, which is very undervalued right now.
Likes the reliable earnings. Steady prescriptions, specialty therapy (increases margins). In oncology drug space, which also has good margins. Automation and AI are helping margins further. 10-12% earnings growth rate at a decent PE. Just under 70% of Americans take at least 1 prescription drug a day; 25% take 4 or more. Population aging and more complex conditions will support volume growth of prescription drugs.
You don't find a chart better than this, long-term uptrend. Ascending channel of higher highs and higher lows. Yield is 0.39%.
Aging demographics will help. Rising 200-day and 200-week MAs. Beat last quarter, raised full-year guidance. 20x forward PE for 14-15% growth rate, a great PEG ratio.