Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Pfizer Inc. (PFE), Amgen, Inc. (AMGN), Merck & Co., Inc. (MRK): Why Wouldn’t You Buy These Pharmaceutical Stocks?

Page 1 of 2

Investors are always trying to find the right balance between risk andreward. I believe the following three pharmaceutical stocks below offer a nice balance: They are expected to show some nice growth, while also paying a healthy dividend that exceeds most other investment options.

Is Pfizer Inc. (NYSE:PFE) right for you?

Dow component and pharmaceutical giant Pfizer Inc. (NYSE:PFE) is surely a juggernaut, with trailing-12-month revenue near $60 billion, and a market capitalization at approximately $200 billion. The stock has done well the past year up approximately 20% and sitting right near its $27.84 52-week high. This leads us to naturally ask is it still okay to buy Pfizer at these levels?

Pfizer Inc. (NYSE:PFE)In one word: yes. The company has blown past consensus analysts’ estimates in three of the last four quarters. It still looks relatively cheap at a 14 times trailing and 11 times forward P/E. This past year, Pfizer Inc. (NYSE:PFE) generated more than $18 billion in free cash flow, which allowed the company to raise its tasty 3.5% dividend yield yet again this past quarter. I think with the continued aging of the baby boomers creating consistent demand for the foreseeable future, a very strong balance sheet, and consistently growing and sizeable dividend, Pfizer is still a buy.

Is Amgen, Inc. (NASDAQ:AMGN) a buy at these levels?

It is no secret that Amgen, Inc. (NASDAQ:AMGN) is a world-class firm with a number of lucrative products, which have led the company to $17 billion in annual revenue and a market capitalization near $70 billion. The stock has skyrocketed nearly 40% the past 12 months, though, leaving investors wondering whether it’s still worth owning.

I believe it is, for a number of reasons. First, the company has operationally been fantastic, exceeding consensus estimates in each of the last four quarters. Second, analysts are expecting accelerating growth, from the 8% per annum it was growing the past five years to nearly 10% over the next five years. Third, the company trades at a historically cheap 16 times trailing and 11 times forward P/E.  Lastly, the company pays a consistently growing 2.2% dividend yield.  I think Amgen, Inc. (NASDAQ:AMGN) provides a great balance between growth and value , and is a solid buy for the long-term investor.

Page 1 of 2

Biotech Insider Alert - $5 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!