Pharma Index going Upwards — Top 3 Drug Manufacturers You Should Consider
A stable old-school Pharma company
Pfizer Inc. was a Top Pick back in January, but stock experts still like the stock.
(A Top Pick May 31/17 Up 20%) A stable, old-school pharma company. They can still spin out some businesses and they have a lot good projects in the pipeline.
140 drugs that generate over $100 million in revenues. They have a good pipeline. Some interesting data on pain medication. Consistent revenue. Great valuation. There is no reason why this company shouldn’t be trading at 14 times earnings and it is trading at 11.5x. he expects a multiple expansion.
(A Top Pick June 16/17, Up 12% ) Likes pharma and owns a couple of them. The time to buy is when they are facing a patent clift, and their biggest drugs are coming off-patents and the company has to find new drugs or buy other promising companies. Pfizer was one of those when they bought Wyeth. They have a big consumer products division, which provides lots of cash flow, good earnings but not huge growth, which they put up for sell recently but couldn’t really find a buyer. Still likes it longer term.