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.

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

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!