When it comes to trading volume, fast price action and financial-community buzz, pharmaceutical stocks are incredibly hot now. Action-seeking traders are encouraged to do their due diligence and pick out the biggest movers in the pharma niche. Finding the best pharmaceutical stocks will seriously help create the best portfolio.
If you’d like a helping hand, there’s no need to worry. That’s because InvestorPlace has got you covered. Five pharma names in particular have been on fire lately.
Indeed, the biggest gains could be just around the corner for some or all of these stocks:
- Zoetis (NYSE:ZTS)
- Regeneron Pharmaceuticals (NASDAQ:REGN)
- vTv Therapeutics (NASDAQ:VTVT)
- Gilead Sciences (NASDAQ:GILD)
- Takeda Pharmaceutical (NYSE:TAK)
Could a regulatory approval or other development send these pharmaceutical stocks to the stratosphere? No one knows for sure, but it’s certainly possible that these stocks could balloon any day now.
Best Pharmaceutical Stocks: Zoetis (ZTS)
You might not have heard of Zoetis or ZTS stock, but it’s a serious mover on Wall Street with more than 1 million shares trading hands on an average day. Mind you, this stock wasn’t immune to the novel coronavirus market crash. However, the share-price snapback has been swift and shows few signs of slowing down.
Zoetis provides an unusual entry point into the pharmaceutical market. The company specializes in medicines for animals, and particularly livestock. The novel coronavirus’ impact on Zoetis has been indirect and mixed. As CEO Kristin Peck observes, “There’s less demand for beef and dairy products, while poultry remains strong as people choose less expensive proteins.”
Nonetheless, Zoetis had a banner first quarter with revenues of $1.5 billion and adjusted net income of $455 million. If the company can maintain that pace, ZTS stockholders could enjoy robust gains with the next earnings cycle.
Regeneron Pharmaceuticals (REGN)
It might not be the most affordable stock in the world, but REGN is one of the best pharmaceutical stocks. It can also move just like a lower-priced stock. Year-to-date, the shares have powered their way from less than $400 to more than $600.
Even with those 50% returns, REGN stock sports a perfectly reasonable trailing 12-month price-earnings ratio of 31.6. Plus, Regeneron’s got a pharmaceutical superstar in the company’s inflammatory disease treatment, Dupixent.
Just recently, it was announced that Dupixent was approved by the U.S. Food and Drug Administration for use via a convenient 300-milligram, single-dose, pre-filled pen. Available as soon as the third quarter of this year, this pre-filled pen could easily catalyze another leg up for REGN stock.
vTv Therapeutics (VTVT)
Not every hot pharmaceutical company has to be directly related to the novel coronavirus. vTv Therapeutics, for example, is in the business of developing important treatments for metabolic diseases which afflict millions of individuals.
The vTv drug pipeline includes medical candidates for type 1 diabetes and related dementia and cystic fibrosis, as well as type 2 diabetes, COPD and fatty acid oxidation disorders. Recent results in a Phase 2 clinical study of a type 1 diabetes symptom treatment were positive.
Specifically, the results suggested “the potential for [vTv’s TTP399 therapy] to provide a benefit beyond standalone insulin treatment for patients living with type 1 diabetes.” Could further trials facilitate more progress for vTv’s drug candidates? Only time will tell, but we’ve seen VTVT stock surge 50% or more in the past, so traders can certainly hope for a repeat performance.
Gilead Sciences (GILD)
With 11,800 full-time employees and locations in multiple U.S. states, Gilead Sciences is a true pharmaceutical mainstay. As for the company’s stock, GILD is a hot commodity with an average daily trading volume in the tens of millions.
What makes Gilead hot nowadays is a Covid-19 treatment candidate known as remdesivir. Even folks who don’t trade stocks have often heard of remdesivir. Gilead plans to produce over 2 million remdesivir treatment courses by 2020’s end.
Encouragingly, Gilead CEO Daniel O’Day reports that an inhalable version of remdesivir, soon to be in Phase I trials, “could potentially allow for easier administration outside the hospital, at earlier stages of the disease.” With that in mind, traders might anticipate GILD stock breaching the $100 level — or shooting even higher.
Takeda Pharmaceutical (TAK)
Who says a stock has to be situated in North America to be a hot item? Let’s take a quick trip to Japan for a moment and check out TAK stock, which sports a generous forward annual dividend yield of 4.4% along with a low trailing 12-month price-earnings ratio of 23.2.
What makes Takeda Pharmaceutical special? As InvestorPlace analyst Louis Navellier points out, Takeda is “the largest pharma in Asia and one of the top 10 in world by revenue.” And, if you can believe it, Takeda has been in existence since 1781.
And yet, even though it’s an ancient company, Takeda is still a hot topic. Currently there’s a bidding war over Takeda’s Japanese consumer-drug business. It’s been said that this business could be worth as much as 400 billion yen, which would translate to around $3.7 billion. If that’s the case, then don’t be surprised if TAK stock soon pierces the $25 price level.
David Moadel has provided compelling content — and crossed the occasional line — on behalf of Crush the Street, Market Realist, TalkMarkets, Finom Group, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets. As of this writing, David Moadel did not hold a position in any of the aforementioned securities.