3 Pharmaceutical Stocks That Can Surge Higher Even if The Markets Correct

Industry Outlook - The pharmaceutical sector has experienced mixed performance over the last five years, with early movers in the vaccine race benefiting during the pandemic, but facing negative sentiment in the post-COVID environment. However, a strong comeback is anticipated in the next 12 to 24 months due to macroeconomic and geopolitical challenges leading to volatility and a shift towards low-beta stocks [1][2]. Company Summaries Pfizer (PFE) - Pfizer's stock has shown signs of bottoming out after a sharp correction last year, currently trading at a forward P/E of 10.8, indicating undervaluation, with a dividend yield of 5.88% [3][4]. - The company has a robust product pipeline with 33 phase three and 27 phase two candidates, totaling 113 programs as of June, supported by over 10 billion in annual R&D spending, which is expected to drive revenue growth [3][4]. - For Q2 2024, Pfizer reported revenue of 13.3 billion, a 3% increase year-over-year, with oncology revenue rising by 27%, positioning it as a key growth driver [3][4]. AstraZeneca (AZN) - AstraZeneca's stock has increased by 22% year-to-date, and it remains attractively valued considering expected earnings growth, with 189 projects in the pipeline, including 20 new molecular entities in late-stage development [5][6]. - The company reported revenue growth of 18% year-over-year to $25.6 billion for the first half of 2024, with strong growth across various therapy areas and geographies, particularly a 22$700 million, enhancing its pipeline, which includes 30 programs in the third phase, indicating a robust growth outlook [8][9]. - For Q2 2024, Merck reported sales of $16.1 billion, a 7$16 billion in capital investment from 2024 to 2028 to expand manufacturing capacity across various sectors [9].