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

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!