3 Magnificent Pharmaceutical Stocks Under $100 to Buy Right Now
Looking for affordable investment opportunities in the healthcare sector? Three Fool.com contributors have identified what they believe are magnificent pharmaceutical stocks currently priced under $100: AstraZeneca (NASDAQ: AZN), Novo Nordisk (NYSE: NVO), and Pfizer (NYSE: PFE). These stocks offer potential growth and value for investors on a budget.
AstraZeneca: A Growth Beast with a Solid Dividend
David Jagielski highlights AstraZeneca as a top healthcare stock. The company has grown into one of the largest in the world through strategic acquisitions and a commitment to innovation. Its robust pipeline features nearly 200 projects across diverse therapeutic areas, including oncology, cardiovascular, and rare diseases.
AstraZeneca aims to reach $80 billion in annual revenue by the end of the decade, a substantial increase from the $56.5 billion generated over the trailing 12 months. The company also offers a dividend yield of 2%, exceeding the S&P 500 (SNPINDEX: ^GSPC) average of 1.2%. With its focus on growth and regular dividend income, AstraZeneca presents a compelling long-term investment.
Novo Nordisk: Sell-Off May Present an Opportunity
Prosper Junior Bakiny suggests that the recent sell-off of Novo Nordisk shares might be an overreaction. While the company has faced challenges, including slowing sales growth and clinical setbacks, its current forward price-to-earnings ratio of 14.2 is below the healthcare industry average of 16.5.
Novo Nordisk's growth is expected to be driven by its successful drugs, Ozempic and Wegovy, particularly with recent and upcoming label expansions. Wegovy has gained approval for treating metabolic dysfunction-associated steatohepatitis, and an oral formulation of semaglutide is nearing approval. The company's pipeline and leadership in the GLP-1 market position it for continued success.
Pfizer: An Underrated Big Drugmaker
Keith Speights argues that Pfizer, despite its large market capitalization and revenue, is currently underrated. The stock trades at only 7.7 times forward earnings, and its price-to-earnings-to-growth (PEG) ratio is an attractive 0.96. While the company faces patent expirations, it also has several rising stars in its product lineup, such as the multiple myeloma drug Elrexfio.
Pfizer's pipeline features 108 programs in clinical development, with 28 in late-stage testing. The company's business development deals, like the planned acquisition of Metsera, further strengthen its prospects. Additionally, Pfizer offers a compelling dividend yield of 7.24%, providing investors with potential double-digit total returns.
