Investing on Pharma Stocks : Taking Tips from Motley Fool

As the COVID-19-stricken world anxiously awaits the discovery of a vaccine that can bring back normalcy, stock market investors are into watching pharma companies.

 

Global pharmaceuticals currently in the lead of the race to find a Covid-19 vaccine, or at the least the most effective treatment, are Pfizer, Johnson & Johnson, Gilead Sciences and Moderna. However, we are hearing mostly announcements of positive results that make the stocks of a drugmaker or a biotech company the most promising investment product; making it difficult for us to decide which pharma stocks to buy.

Nonetheless, a suggestion coming from financial investments experts at Motley Fool is to invest in several, instead of just loading one’s money on a single pharmaceutical firm.

According to the Virginia-based financial adviser, even if the coronavirus efforts of the big pharmaceuticals fail, their stocks are not likely to fall. On the other hand, some smaller biotech companies are worth considering, because they have successful programs on the wing that could soften the effects of a failed COVID-19 project.

Motley Fool’s Keith Speights Lists Top 3 Pharmas to Consider

Keith Speights, whose focus is mostly healthcare investments in light of his experience in managing and consulting various sectors of the healthcare industries, ranks the following as the top 3 pharmaceutical companies to consider:

 

Pfizer – (NYSE:PFE) $37.50 per share as of May 25, 2020

Speights considers Pfizer a good choice as of the moment, not only because of the company’s ongoing COVID-19 project; but also of the company’s pending plan to merge its Upjohn with Mylan (NASDAQ-MYL). The merger will see the formation of a new company called Viatris. Once the deal falls through, Pfizer’s strong product lineup will include Ibrance (breast cancer drug), Eliquis (blood thinner co-marketed with Bristol Myers Squibb), Xtandi (prostate cancer drug) and Vyndaquel (rare-disease drug.)

Bristol Myers Squibb – (NYSE:BMY) $60.79 per share as of May 25, 2020

As an option for a long-term investment, Bristol Myers Squibb (BMS) has a promise of growth; being the producer of Eliquis (blood thinner) and Opdivo (cancer immunotherapy), which market-researcher Evaluate Pharma included in the list of best-selling drugs on a global scale. In addition, BMS’ sales for Orencia (arthritis drug) and Empliciti (multiple myeloma drug), are also on the rise.

AbbVie – (NYSE:ABBV) $92.10 per share as of May 25, 2090

Speights’ compelling argument for investing in AbbVie shares is that the drugmaker has been consistently paying out dividends since 1924, while on the record for having increased payouts in the past 47 years. Since its spin-off from the Abbot Lab in 2013, AbbVie’s dividend yields have nearly tripled. Currently, AbbVie’s yield is at 6%.

Consider Diversifying by Investing on Derivatives for Stock Market Futures

After sharing what we have gathered from Motley Fool as the best pharma stocks to consider, we also recommend diversifying one’s portfolio by considering derivatives on stock market futures. However, those who will be investing in derivatives for the first time, should not be too hasty when venturing into this type of financial trading.

What we recommend for newbies, is to connect with a verified and regulated broker like IQ Option Ltd (CySEC License No. 247/14). At the ipoption website, newbies can have a good start by initially registering for a demo account that they can use for practice, until they get the right idea on how to day trade profitably with derivatives.

Companies that are Profiting from Covid-19 Pandemic

Let us straight and be true, many investors took a blow during the past weeks and months due to Covid-19 outbreak. As a matter of fact, this was the longest bullish market in history that came to a halt. There are numerous portfolios from different investors have been shaken. So in regard to this matter, what is the appropriate action that investors should be doing?

It is true that fear is prevalent in market today and times such as these do present lucrative opportunities for those investors who are willing to take the risk, just as what famous investor Warren Buffet has stated. Sure enough, there is a chance we have not reached yet from the negative trend of the market. Figuring to time the market on the other hand is quite a foolish move. It is almost impossible to foresee when fear will be eliminated and substituted by greed.

If you are willing to take the risk and take a loan at https://www.southeasttitleloans.com to play the market, the following stock options are right now the hottest that you can get. Meaning, stocks that can yield great profits.

Berkshire Hathaway

Indeed, like many other companies in the market today, Berkshire Hathaway has taken a blow as well from the outbreak of Covid-19 and the crash of stock market. Furthermore, other segments of the business from insurance, subsidiaries and equity holdings were stricken by the sudden shift in macroeconomics.

But as per reports, current financial update of the company totals to over 125 billion dollars. This is serious money in hands of one of the best capital allocators the world has ever had. This only show that Warren Buffet along with his legion of investment experts meticulously scour the market to close attractive investment opportunities during economic downturn.

Apple

Another tech giant company that seems to have unlimited pool of money and can take whatever is thrown at them. While the company certainly suffered as well from poor sales performance of their production as well as closure of stores because of the pandemic, their stock began to take a dive of around 14 percent since February 19.

But that isn’t the sole source that Apple has for their profits. Believe it or not, they have successfully built a formidable business that is not dependent on product sales alone. This area helps Apple in offsetting any hit that their hardware section takes. They are taking revenue as well from Apple Pay, Apple Music, iCloud, App Store, Apple TV+, AppleCare and several other services.

All in all, “services” segment of Apple accounted for a total of 18 percent revenue and a 30 percent gross profit.