by Louis Navellier | March 8, 2012 6:00 am
Pharmaceutical companies face a host of challenges in the next few years, including patent expiration of some of the best-selling drugs in history. But don’t count this sector out. There are a number of great companies in pharma if you know where to look.
I watch more than 5,000 publicly traded companies with my Portfolio Grader[1] tool, ranking companies by a number of fundamental and quantitative measures.
This week: 10 pharmaceutical stocks to buy, in alphabetical order. Each gets an “A” or “B” according to my research, meaning it is a “strong buy” or a “buy.”
Abbott Laboratories (NYSE:ABT[2]) discovers, develops, manufactures and sells a range of health-care products. Since last March, ABT has gained 16%, compared to a gain of just 5% for the Dow Jones. Abbott Labs gets an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of ABT stock[3].
Bristol-Myers Squibb Co. (NYSE:BMY[4]) is a global biopharmaceutical company that has posted a gain of 22% in the last 12 months. BMY gets a “B” grade for operating margin growth, an “A” grade for earnings growth, a “B” grade for earnings momentum, a “B” grade for cash flow and an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of BMY stock[5].
Eli Lilly & Co. (NYSE:LLY[6]) is involved with products in neuroscience, endocrinology, oncology, cardiovascular and animal health. LLY has jumped 12% in the last year. Lilly gets a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for cash flow and an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of LLY stock[7].
GlaxoSmithKline PLC (NYSE:GSK[8]) develops vaccines, over-the-counter medicines and health-related consumer products. Since last March, GSK has posted a gain of 15%. The stock gets a “B” grade for earnings momentum and an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of GSK stock[9].
Johnson & Johnson (NYSE:JNJ[10]) is one of the most well-known health-care companies for its extensive lines of consumer products. A modest gain of 5% in the last year has JNJ landing on the list. JNJ gets an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of JNJ stock.[11]
Merck & Co Inc. (NYSE:MRK[12]) is another global health-care company that develops medicines, vaccines, biologic therapies, animal health and consumer products. Merck stock has gained 13% since this time last March. MRK gets an “A” grade for operating margin growth, a “B” grade for cash flow and a “B” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of MRK stock.[13]
Novo Nordisk (NYSE:NVO[14]) is a health-care company based in Denmark that is up 8% in the last year. Novo Nordisk stock gets a “B” grade for operating margin growth, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude of which earnings projections have increased over the past months and an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of NVO stock[15].
Pfizer Inc. (NYSE:PFE[16]) develops products for central nervous system disorders, urogenital conditions, eye disease and endocrine disorders, to name a few. PFE is up 8% in the past year. Pfizer stock gets a “B” grade for cash flow and a “B” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of PFE stock[17].
Questcor Pharmaceuticals (NASDAQ:QCOR[18]) is best known for its product H.P. Acthar Gel, which is an injectable drug used for 19 indications. QCOR has posted an amazing gain of 187% in the last year. Questcor stock gets an “A” grade for sales growth, a “B” grade for operating margin growth, an “A” grade for earnings growth, an “A” grade for earnings momentum, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, an “A” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of QCOR stock[19].
Sanofi ADS (NYSE:SNY[20]) is the final global, diversified health-care company to make the list with a yearly gain of 4%. Sanofi stock gets an “A” grade for sales growth, an “A” grade for earnings momentum, a “B” grade for cash flow and a “B” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of SNY.
Get more analysis of these picks and other publicly traded stocks with Louis Navellier’s Portfolio Grader[21] tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.
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