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.