Key Points A notable bank and a major investment management firm bought more shares of Johnson & Johnson. The healthcare giant has performed well this year despite some significant headwinds. The drugmaker is well equipped to deal with these challenges over the long term. 10 stocks we like better than Johnson & Johnson › Pharmaceutical giant Johnson & Johnson (NYSE: JNJ) has performed well this year. The company's shares are up by 45% since January. However, many investors, including institutio ...

Core Viewpoint - Vertex Pharmaceuticals is positioned to outperform Pfizer in the medium term, with a potential market cap surpassing Pfizer's by 2030 due to strong revenue growth and a robust pipeline of new products [1][7]. Pfizer's Issues - Pfizer has faced declining financial results as pandemic-related products lose their growth momentum, leading to slow sales growth for the next few years [2]. - The company is approaching critical patent cliffs by 2030, particularly for key products like Eliquis, Xtandi, and Prevnar 13, which will further impact its financial performance [2][7]. Vertex's Prospects - Vertex Pharmaceuticals is expected to maintain strong revenue growth, primarily due to its leadership in the cystic fibrosis market and the absence of patent cliffs for its major products until the late 2030s [4][5]. - The company has promising new product launches, including Journavx for acute pain and Casgevy for rare blood disorders, which are anticipated to drive growth over the next five years [5][6]. - Vertex is also developing zimislecel for type 1 diabetes, showing potential in clinical trials to restore insulin production, which could significantly impact its stock price [6][7]. - The late-stage pipeline includes inaxaplin for APOL-1 mediated kidney disease, addressing a condition with no current treatment options, further enhancing Vertex's growth prospects [7].

Core Viewpoint - Pfizer's stock has struggled for several years, with significant declines in value, but recent developments may provide a glimmer of hope for investors [1][3][5]. Company Overview - Pfizer is one of the largest healthcare companies globally, founded in 1849, and is known for its innovative medicines, including the COVID vaccine Comirnaty [1][2]. Recent Developments - A recent deal with the U.S. government provides Pfizer a three-year grace period on tariffs for imported pharmaceuticals, which has positively impacted investor sentiment [3][4]. - Pfizer has committed to lowering drug prices for Medicaid and investing $70 billion in research and manufacturing in the U.S. over the coming years [4]. Stock Performance - Following the recent news, Pfizer's stock closed above $27 for the first time since January, indicating a slight recovery with year-to-date gains of around 3% [5]. Challenges Ahead - Despite the recent stock rally, Pfizer faces challenges such as diminishing COVID sales and potential revenue losses of $16 billion to $18 billion due to patent expirations on key drugs [6][7]. - The acquisition of oncology company Seagen could potentially generate up to $10 billion in sales by 2030, but uncertainties remain regarding the mRNA vaccine portfolio [8]. Financial Outlook - Pfizer generated nearly $11 billion in profits over the trailing 12 months, but investor confidence is shaky amid uncertainties in the healthcare sector [9]. - The stock is currently valued with a price-to-earnings multiple of less than 13 and a price-to-earnings-growth ratio around 1, suggesting it may be undervalued [10]. Long-term Potential - Pfizer is actively expanding its pipeline to create more growth opportunities, and even partial successes in its initiatives could serve as catalysts for stock price increases [11]. - Investing in Pfizer at its current valuation may yield positive long-term returns, regardless of short-term fluctuations [12].