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Tiger Cub John Griffin’s Blue Ridge Capital Up to 6% of Endo Health Solutions Inc (ENDP)

Other drug companies include Teva Pharmaceutical Industries Ltd (ADR) (NYSE:TEVA), Gilead Sciences, Inc. (NASDAQ:GILD), Abbott Laboratories (NYSE:ABT), and Pfizer Inc. (NYSE:PFE). Teva is the cheapest of these companies in terms of consensus earnings forecasts for 2014, with a forward P/E of only 7. However, that figure assumes a considerable improvement on the bottom line from current conditions despite revenue and earnings being down recently. Pfizer is a somewhat interesting dividend stock, with a yield of 3.3% at current prices; its earnings were up over 50% last quarter compared to the first quarter of 2012, but revenue was actually down 9%. It does look a bit cheap, and so might be worth looking into why its financials are behaving this way. Abbott and Gilead trade between 16 and 18 times forward earnings estimates. Gilead’s trailing P/E is considerably higher as the stock has more than doubled in the last year, but the company has been recording good growth numbers and the market is apparently anticipating further increases in earnings in the future.

As a result it might also be worthwhile to check out what the next few years could look like for Gilead and see if it is in fact an attractive growth stock. We’ve also mentioned Pfizer as being of interest. As for Endo Health Solutions Inc (NASDAQ:ENDP), it’s interesting that Griffin is buying but as we’d mentioned analysts (who are normally bullish) are looking for EPS to decline going forward and so it might be best to wait for another quarter or two of results to see if those are in line with sell-side targets.

Disclosure: I own no shares of any stocks mentioned in this article.

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