The accompanying table presents the top six rated companies with market caps of at least $250 million (USD) from each of the eight ETFI healthcare indexes (which include a database of about 320 companies) as equally-weighted components in the ETFI Global Healthcare Sector PerformIdex of 48 companies.
Management is determined to grow earnings largely through expanding its top-line and only secondarily through cost-cutting, share buybacks and productivity initiatives.
"You can invest for all the right reasons and still get the wrong result," notes long-standing turnaround stock expert George Putnam, referring to the poor performance of the pharmaceutical sector in recent years.
Here, in his industry-leading The Turnaround Letter, he offers a fascinating review of 10 leading drug stocks which he now believes offer a combination of growth potential at "pretty cheap" valuations. Here is
"You can invest for all the right reasons and still get the wrong result," says George Putnam, referring to the poor performance of the pharmaceutical sector in recent years.
Here, in his industry-leading The Turnaround Letter, he offers a fascinating review of 10 leading drug stocks which he now believes offer a combination of growth potential at "pretty cheap" valuations.
"In 2000 and 2001, when the Internet boom was becoming a bust, many smart investors turned away from technology stocks and put their money into drug stocks. How could you go wrong with the big pharmaceutical companies?
1/31 - "Revenues at $29,559 million (+7% CER) vs. consensus $29,279 million, operating profit $8,094 million vs. consensus $8,035 million, reported EPADR (earnings per ADR) $3.74 consensus $3.72. EPADR on guidance basis $4.20 vs. $3.98-$4.13 range. Core EPADR (ex. intangible. amortisation. and restructuring) $4.38, guidance for ’08 core EPADR $4.40-4.70, or 0-7% growth."
"Positive R&D Update — Company believes it is on target to bring on average two new medicines to market each year from 2010 onwards. Small molecule respiratory, inflammatory disease and cancer effort will be reduced."
"We...
3/21 - "AstraZeneca plc (ADR) (Public, NYSE:AZN) the U.K.'s second-largest drugmaker is just $2 away from their 52-week low yet they have 10 drugs in Phase 3 Trials and their lineup of 12 drugs rake in more than $1 billion a year in revenue...The stock has been beat down because AstraZeneca needs new products to boost revenue as generic drugmakers threaten sales of some of its biggest medicines. They have three lawsuits pending against companies seeking to sell copies of ulcer treatment Nexium, its best- selling product."
"AstraZeneca's pipeline is huge, just take a look at their website ...
3/25 - "We believe the company will have a tough time growing revenue at a rate better than the low single-digits in 2008 due significant competition from generics. However, management’s productivity and synergy initiatives should benefit operating margins and earnings in the next few years, which should help grow EPS faster than revenues. Management appears to have clearly defined goals in regards to building out its pipeline and getting more drugs to market."
"We believe the stock offers fair valuation and rate the shares a Hold with a $42 price target, representing 9.8x our 2008 EPS for...
In my opinion, global large-cap pharmacueticial stocks, including Pfizer , Novartis , Astrazenca , GlaxoSmithKline , Wyeth and Eli Lilly are currently substantially undervalued. These companies are currently paying out huge dividends and trading at sensible P/Es. Unlike their small-cap high-risk research counterparts, these blue-chip stocks represent strong, yet low risk growth. Why risk your money on an obscure new cure for bird-flu, from a dodgy one-man company, when you don't have to?
While sales of their products may be slowing in the OECD developed world, ...
The global pharma sector is undervalued. However, it is not without reason. The last couple of years have brought nothing but disappointment for its investors. Generic competition, patents expiring, and most importantly, lots of money to be made elsewhere! But the times they are a changing! On the edge of a recession in the US, and the slowest Christmas sale in years. Later this month the Fed will decide whether they are going to lower rates by 25p or 50p, but how much is not the important question, the fact is that the rates are going down! And the pharma sector has always outperformed f...
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About AstraZeneca PLC
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"You can invest for all the right reasons and still get the wrong result," says 
