Best Pharma Stocks to Buy in 2022: Which is Best?
Best Pharma Stocks to Buy: Stock performance over time
|Stock Name||1 day||5 day||1 Month||6 Month||YTD||1 Year|
Best Pharma Stocks to Buy: Technical Parameters for Each Stock
|Stock Name||Moderna Inc||Pfizer Inc||Johnson &|
|Moving Average (50 days|
|Moving Average (200|
Best Pharma Stocks to Buy: Financial Parameters for Each Stock
|Stock Name||Moderna Inc||Pfizer Inc||Johnson &|
|Earnings Per share||7.70||1.34||2.60||2.00|
|Revenue||4.97 Billion||24.09 Billion||23.34 Billion||11.62 Billion|
|Net Income||3.33 Billion||8.15 Billion||3.67 Billion||1.55 Billion|
|Total Assets||20.92 Billion||179.19 Billion||179.23 Billion||110.89 Billion|
|Total Liabilities||10.80 Billion||103.22 Billion||108.96 Billion||73.61 Billion|
|Debt to Assets||51.61%||57.61%||60.79%||66.38%|
|Operating Cash Flow||3.28 Billion||10.83 Billion||8.29 Billion||5.27 Billion|
|Investing Cash Flow||(3.33 Billion)||(10.08 Billion)||(2.72 Billion)||(976 Million)|
|Financing Cash Flow||2.00 Million||(1.10 Billion)||(2.21Billion)||(1.78 Billion)|
Best Pharma Stocks to Buy: Results are for Q3 2021 for each company
Best Pharma Stocks to Buy: Moderna Inc
Last One Year Chart for Moderna Inc
Moderna Inc started the year with the lowest point of $110 and then shot up almost up to $500 on 10th August. But since then, it has been in downtrend and has corrected almost 50% from the all-time high. But in this downtrend $223 should act as a strong support as stock rebounded from that level on 5th November. Also $321 should be resistance for near term and if stock crosses that level then $350 is second strong resistance as per chart.
Moderna launched its vaccine about a year ago shortly after its rival Pfizer launched it. Although, most Americans are vaccinated by Pfizer, but Moderna stands at close second spot in America. Moderna predicts vaccine sale of around $15 billion to $18 billion this year. Investors showed interest in Moderna in most part of the year but started to lose confidence towards the fag end of year and stock has fallen 50% from the August high. Investors are worried that sales would slip as pandemic eases and eventually it would drop significantly.
But, the reaction is overdone. According to experts, vaccination will not be a one-time thing and with emergence of new variants, it is sure that we would need vaccine on a regular basis. Moderna has locked in purchase agreements for vaccines and boosters through 2024 and increase in omicron variants would spur countries to take action and secure orders.
As there is so much ahead for this innovative company, and it is understandable that investors who entered Moderna in early 2020, would like to book profits, but Moderna is ready for fresh entry, and least it should not be sold in panic.
Best Pharma Stocks to Buy: Pfizer Inc
Last One Year Chart for Pfizer Inc
Pfizer has witnessed a fabulous upward journey since last one year. The stock started the year at $36 and then saw a one direction movement up to $51 on 18th August. A good stock corrects up to 20% after a major bull run and then rebounds. Similarly, for Pfizer, it corrected up to $40 on 18th October, took support and then started moving higher. Going forward, $40 will be a very strong support. In near term, $61.63 will act as resistance for stock and $51.12, which cushioned Pfizer downward journey, should be next support level according to chart.
Pfizer expects to record annual revenue of between $81 billion and $82 billion, which would mean growth of between 93% to 95% year over year. Through nine months, company reported revenue of $57.6 billion and it is on track to achieve annual revenue promised. Much of this revenue came from Comirnaty, the COVID -19 vaccine the company developed with BioNTech and Pfizer will make approximately $36 billion in revenue from the vaccine this year.
But Pfizer is not only centered around COVID -19 vaccine and it has developed new COVID -19 antiviral drug Paxlovid and that could be path breaker for Pfizer. Its approval is pending Food and Drug Administration and it is expected to reduce hospitalization or death due to COVID -19 by 89%. Pending the FDA results, U.S. government has already placed order for $5.3 billion for 10 million courses of Paxlovid. Paxlovid is expected to surpass Comirnaty in the following years and that could set the next rally for Pfizer. Also, Pfizer is a high dividend yield stock and it declared recently a $0.4, representing a yield of 2.6%. Also, Pfizer has raised dividend for 11 consecutive years and currently Pfizer has that much cash that it further raise dividend in the coming years. Instead of cashing in on Pfizer now, considering holding it for next few years and enjoy dividend in the meantime.
Also read: Moderna Stock Forecast
Best Pharma Stocks to Buy: Johnson &Johnson
Last One Year for Johnson & Johnson
It has been a volatile year for Johnson & Johnson. It started the year at $156 and went on to hit $180 on 20th August, around the time other pharma stocks also peaked out and then wiped out all the gains only to bounce back from $156. Going forward, $162 will be next support, and if it breaks that, $156 is next very strong support. $174 is next resistance and if breaks that, year all time high of $180 will be tested in the future. However, it will not be one direction journey for stock and it be met with opposite forces as and when it crosses important levels either upward or downward.
Johnson & Johnson, the health conglomerate is breaking the chains and is jettisoning its slow growth consumer healthcare business. That means that in a couple of years’ company selling iconic brands like Band Aid and Tylenol will not be called Johnson & Johnson and it makes complete sense as consumer health segment only grew 1% last year. The drug division has been the engine of growth for company management is excited about the new products coming in the market.
With a price to earnings ratio of 25, investors are able to buy one of the most historically stable stock at P/E ratio of less than that of S&P 500 index. Also, company holds record of increasing the dividend payout for 59 years in a row and currently has a dividend yield of 2.5% and stock can prove to be cash cow in future if the defragmentation proves out to be worthy.
Best Pharma Stocks to Buy: Bristol Myers Squibb
Last One Year for Bristol Myers Squibb
Bristol Myers stock started the year on a positive note around $61 and it went on to hit $67 on 19th January, and since then it has been volatile journey for stock till it hit year all time high of $70, and as story continues for other pharma stocks, it peaked out on August 23rd and fell more than 20% to take support around $53. Going forward, $53 will be good support and as it is currently in the upward trend, $67 is the next resistance and if it breaks that, $70 will be the next target.
Bristol Myers Squibb makes the blood thinner Eliquis and the cancer drug Opdivo. It acquired the drugmaker Celgene in 2019 and it had one of the world’s top selling medications – blood cancer drug Revlimid. Sales of the drug soared to more than $12 billion last year, but it faces patent expiration as of 2023. Also Eliquis, company’s second best performing drug will be generic about three years later.
Although, Bristol Myer has pipeline of drugs but it is unclear that these programs can compensate for the loss of older blockbuster drugs. Bristol Myer’s pipeline of about 50 candidates lag behind Pfizer pipeline of 94 candidates and Merck list of 96 candidates in phase 2 and phase 3 trials. Given the challenges in the near term for company, Bristol Myers is going to be in transition phase for next few years at a minimum till its transition from older drugs to newer drugs pan out successfully and it is commercially acclaimed to continue the legacy of Bristol Myers.
Best Pharma Stocks to Buy: Conclusion
- The best pharma stock to buy is one that increase their revenue and earnings on a constant basis. Pharma companies must always content with the expiring patents and should have robust pipeline of drugs to offset any decreases in the existing revenue streams.
- Investors looking for pharma stocks should pick at least one among Moderna or Pfizer, if not both. I tilt towards Pfizer simply because it has brighter prospects with Paxlovid and other drugs in pipeline to sustain its growth in future.
- Johnson & Johnson is struggling hard to get out of allegations mounted against it by dropping healthcare business from its main stream and is focusing on new drugs. It is a stable bluechip stock to protect the investors in the hard times and is expected to give decent returns in future if not multifold if its planned defragmentation works out well.
- Bristol Myers Squibb is going through a transition phase and it is better to wait and watch till it settles for the new drugs to acclaim commercial success.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.