You Will Love These Stocks More in 2013: General Electric Company (GE), Johnson & Johnson (JNJ)

Pfizer Inc. (NYSE:PFE)

Pfizer’s stock has given a return of around 26% in the last year. This even surpassed the ~19% return estimated by the NYSE ARCA Pharmaceutical Index of large US and European pharmaceutical companies. This was mainly due to its strong portfolio of products and the company’s efforts to divest/spin-off its non-pharmaceutical segments to focus more on its core operations. Pfizer used the cash proceeds from these spin-offs towards its shareholder’s return via bigger dividends and share buybacks.

The company last month reported its Q4 12 and FY 2012 earnings which showed the reviving sales in the emerging markets. Its sales from the emerging markets increased ~17% q/q to ~$2.65 billion.

Talking about product pipeline, Pfizer has in its bag some recent approvals for new drugs which will help it in posting better sales figures in 2013. The most important of them is the blood clot preventer “Eliquis” that it has jointly developed with Bristol-Myers Squibb Co. The drug is already approved by Japan’s and Europe’s agencies for use on arterial fibrillation patients. In late December 2012, it was also approved by the US FDA, which will further open a bigger US market for this drug.

This was a great achievement by the company, since the approval was earlier denied twice by the FDA, and any further decision was expected only until March 2013. However, this early approval will help Pfizer to give a tough fight to its closest rival, Johnson & Johnson, which already has an approved drug for this category. Various analysts are forecasting annual sales of around $5 billion for Eliquis.

Along with this, Pfizer’s rheumatoid arthritis drug Xeljanz also got approval from the US regulator in November 2012. This is another strong growth point for the company, since this drug will enter the high volume RA treatment market, which accounts for ~$20 billion of sales annually. Xeljanz is expected to generate ~$2 billion of sales annually for Pfizer.

I am extremely positive about the company’s future performance, looking at its impressive pipeline of experimental drugs.

Johnson & Johnson (NYSE:JNJ)

Johnson & Johnson last month posted its fourth-quarter and full year results for 2012. The company had sales of ~$17.6 billion for the quarter, which was an increase of around 8% year over year. However, the worldwide consumer sales for FY12 saw a decline of ~3% year over year at ~$14.4 billion, mainly due to the negative impact from currency fluctuations. Going forward, the short investors can expect some headwinds from the consumer segment looking at the stiff competition in this sector.

However, for the long investors, this stock presents a rosy picture. The company recently presented its blueprint to enhance growth for its Medical Devices & Diagnostics segment (MD&D). The MD&D segment got a boost via the acquisition of Synthes in 2012, which contributed ~8% to the worldwide operational sales growth.

Biotech Insider Alert - $6 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.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

Subscribe

Enter your email:

Delivered by FeedBurner

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!