Workflow
3 No-Brainer Pharmaceutical Stocks to Buy With $500 Right Now
ABTAbbott(ABT) The Motley Fool·2024-10-18 09:10

Core Viewpoint - Pharmaceutical stocks are considered strong long-term investments due to their consistent demand and revenue stability regardless of economic conditions [1] Group 1: Abbott Laboratories - Abbott Laboratories operates in pharmaceuticals, medical devices, diagnostics, and nutrition, providing diversification that mitigates risks from any single business segment [2] - The company has shown remarkable historical performance, with a cumulative compound return of 7,803,730% from 1937 to December of the previous year [2] - Abbott is recognized as a Dividend King, having raised its dividend for over 50 consecutive years, indicating a strong commitment to shareholder returns [3] - The company has authorized a new stock repurchase program of up to 7billion,furtherdemonstratingconfidenceinitsfutureandcommitmenttorewardingshareholders[4]Group2:PfizerPfizersstockiscurrentlyundervaluedat11timesforwardearningsestimates,makingitanattractiveinvestmentopportunity[5]Thecompanyhasfacedchallengeswithdecliningcoronavirusvaccinesalesbutanticipatessignificantgrowthfromnewproductsandastrongfocusononcology,projectinganadditional7 billion, further demonstrating confidence in its future and commitment to rewarding shareholders [4] Group 2: Pfizer - Pfizer's stock is currently undervalued at 11 times forward earnings estimates, making it an attractive investment opportunity [5] - The company has faced challenges with declining coronavirus vaccine sales but anticipates significant growth from new products and a strong focus on oncology, projecting an additional 20 billion in revenue by 2030 from non-coronavirus products [5] - The acquisition of Seagen is already contributing positively to Pfizer's revenue, with plans to launch at least eight blockbuster oncology medicines by 2030 [5] - Pfizer pays a dividend of 1.68persharewithayieldof5.61.68 per share with a yield of 5.6%, and is committed to growing its dividend over time [6] Group 3: Johnson & Johnson - Johnson & Johnson has successfully spun out its consumer health business to focus on pharmaceuticals and medtech, resulting in operational sales growth of 6.3% in innovative medicines and 6.4% in medtech [7] - The innovative medicines segment has consistently surpassed 14 billion in sales for two consecutive quarters, with significant contributions from major brands [7] - The immunotherapy drug Darzalex achieved 3 billion in sales in a single quarter, showcasing the strength of J&J's product portfolio [7] - Recent acquisitions have positively impacted medtech growth, and the company has 19 billion in free cash flow, reinforcing its status as a Dividend King and a solid choice for passive income and long-term growth [8]