5 Best Drug Stocks to Buy Now

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In this article, we discuss the 5 best drug stocks to buy now. If you want to read about some more stocks, go to 15 Best Drug Stocks to Buy Now.

5. Pfizer Inc. (NYSE:PFE)

Number of Hedge Fund Holders: 70

Pfizer Inc. (NYSE:PFE) is a leading New York-based drug company. The stock is considered among the best pharmaceutical stocks in the industry currently.

Pfizer Inc. (NYSE:PFE) has an attractive annual forward dividend yield of 3.81% as of October 17. The company’s conservative payout ratio of 25.99% suggests a secure dividend with scope for annual increases. The stock is trading at a trailing one-year price-to-sales multiple of 2.37x, which is significantly lower than the average of 4.28x for the healthcare sector. This reflects that the stock is trading at a discount.

Following the success of the Covid-19 vaccine, Pfizer Inc. (NYSE:PFE) is continuing to advance its medical pipeline with successful drug launches recently. The company has also used the strong cash flow generated by the sales of the COVID-19 vaccine to buy Biohaven Pharmaceuticals for $11.6 billion in October.

Carillon Tower Advisers discussed its insights on Pfizer Inc. (NYSE:PFE) in its Q2 2022 investor letter. Here’s what the firm said:

Pfizer Inc. (NYSE:PFE) is a research-based global biopharmaceutical company. The United States agreed to pay Pfizer and its vaccine partner more than $3 billion in a deal for their messenger RNA shots against COVID-19. Additionally, the U.S. Food and Drug Administration authorized the company’s COVID vaccine for children aged 5 to 11.”

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