‘Fast Money’ traders talk opportunities in health care stocks

Pharmaceutical Sector Analysis - The pharmaceutical space has been under pressure, leading to cheaper multiples [1] - The industry is attractive due to its lack of correlation with AI and strong balance sheets [2] - Healthcare sector positioning is underweight, providing sustainability [3][4] - Medicare's low percentage of revenues for the sector makes government negotiation a win [5] - Valuations of many companies are at multi-year EPS relative value [6] Company Specifics (Fizer) - Fizer's deal with Metera and mid-stage readout of the long-acting GLP1 drug are turning points [7] - Fizer has allocated 70 billion USD for R&D and capex spend [5] Market Dynamics - Generalist investors are overweight in technology and may rotate into the pharmaceutical space [10] - The market doesn't care about a government shutdown [14] Valuation - Bristol is trading at 85 times next year's earnings, and Merc is probably about the same [9] - Giving Bristol a 12 multiple quickly makes it a 72 USD stock, and Merc a 120 USD stock [9]