3 Top Pharma Stocks To Buy This Month

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In 2020, pharmaceutical stocks came to the forefront as healthcare companies were searching for treatments for COVID-19. As represented by the SPDR S&P Pharmaceuticals ETF (XPH), the pharmaceutical industry gained 75% from March 23, 2020, to February 8, 2021. It has since leveled off a bit as the ETF is down 7% since then. But this provides us a buying opportunity to pick up some shares on the dip. 

Much like technology companies, healthcare companies, and pharmaceutical companies, in particular, represent the future, as an aging boomer population will start requiring more medications and healthcare needs. A large percentage of the population is already heavily medicated, so imagine what it will be like in twenty to thirty years. That’s why adding pharmaceutical companies to your portfolio now isn’t a bad idea. 

The key is finding companies with solid fundamentals and consistent growth, which our proprietary POWR Ratings system can help you with. So, I ran a screen for three top pharmaceutical companies in our database that also had notable growth drivers expected to drive their share prices up. This is why I am highlighting Bristol-Myers Squibb Company (BMY), Johnson & Johnson (JNJ), and Novo Nordisk A/S (NVO - Get Rating) below.

Bristol-Myers Squibb Company (BMY)

BMY discovers, develops, and markets drugs for various therapeutic areas, such as cardiovascular, oncology, and immune disorders. A key focus for the company is immuno-oncology, where the firm is leading in drug development. The company has also exited several nonpharmaceutical businesses to focus on branded specialty drugs, which have stronger pricing power.

BMY acquired Celgene and its multiple myeloma drug, Revlimid, in November 2019. This drug is driving a lot of growth for the company as it’s approved for several indications, such as myelodysplastic syndromes and mantle cell lymphoma, in addition to multiple myeloma. Revlimid is seeing market share gains. Plus, patients are using the medication for longer durations, which is contributing to its growth.

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Roger Keats 2 weeks ago Member's comment

good overall summation of these stocks