2 Pharma Stocks To Watch This Week
One of the perks of investing in pharmaceutical stocks is that they offer strong growth prospects and solid dividends. You could make a pretty good investment any time in drugmakers if your investment horizon is long enough. Honestly, think about it. Just randomly pick on any major pharmaceutical stock and look back at their historical stock price performance. And you would understand what I’m trying to say. This is because most drugmakers generate lots of cash from their drug sales. They continually reinvest in new products and reward their shareholders with high dividend yields.
It’s obviously a long-term game and it doesn’t suit every investor. Maybe some of you are looking for a quick flip. In that case, the small-cap stocks space is clearly the more attractive area to be focusing on. Just yesterday, for instance, we saw Eastman Kodak (KODK Stock Report) tripled in value before closing 203% higher during the closing bells. This comes after President Donald Trump announced a deal to work with the photography pioneer to produce vital coronavirus-related pharmaceutical components. As a result, KODK stock remains one of the top pharmaceutical stocks to watch this month. However, you may be looking for constant improvement in dividend yields and capital appreciation. If so, the major pharma companies may be the better bet. With that in mind, here are two top pharmaceutical stocks that you could consider.
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Top Pharmaceutical Stocks To Watch This Week: AstraZeneca
First, up the list, AstraZeneca (AZN Stock Report) started the week with its potential cancer drug news. This involves collaboration with Daiichi Sankyo (DSNKY Stock Report). It is reported that AstraZeneca will hand $1 billion upfront to its collaboration partner. That is for developing and commercializing DS-1062, an experimental treatment for breast and lung cancer which is currently in phase 1 trials.
The company could have more big winners on the way. Its huge pipeline includes 167 programs, with 20 of them in the clinical late-stage studies. More importantly, the highly anticipated candidate AZD-1222, the experimental COVID-19 vaccine jointly developed with Oxford University. Notably, the AZD 1222 vaccine candidate from AZN and mRNA-1273 candidate from Moderna (MRNA Stock Report) are widely viewed as the leaders among the coronavirus candidates in clinical testing so far.
We saw both MRNA stock and AZN stock had some small pull-back last week. In the case of AZN stock, the pullback could simply be because investors were concerned with the minor “side-effects” of the vaccine candidate despite promises in generating antibodies and T-cells against the coronavirus.
Top Pharmaceutical Stocks To Watch This Week: Bristol-Myers Squibb
Bristol-Myers Squibb (BMY Stock Report) is another pharmaceutical stock to watch with amazing growth opportunities. With the strategic acquisition of Celgene last year, there are reasons to believe that the company could record strong growth in the near-term. The drugmaker’s pipeline has loads of blockbusters. It has got the big winners that come with Celgene. In addition, drug sales continue to soar for cancer drugs, a blood thinner, and arthritis drugs.
So, the company has many newer drugs and late-stage pipeline candidates. And these make BMY stock one of the best pharmaceutical stocks to watch. Potential blockbusters in the near future include blood disorder drug Reblozyl and multiple sclerosis drug Zeposia. The company is also looking to gain regulatory approvals for CAR-T cell therapies ide-cel and liso-cel, both of which are expected to generate annual sales of $2 billion or more.
All in all, Bristol-Myers Squibb seems like a good long-term value stock with an attractive dividend, cheap valuation, and has room for plenty of upside down the road.