In the world of healthcare, there are hidden gems waiting to be discovered. Three industry experts have identified a trio of underappreciated stocks that have the potential to surprise investors. Bristol Myers Squibb, Moderna, and Pfizer are often overlooked, but they possess unique strengths that make them attractive buys.
Bristol Myers Squibb, a pharmaceutical giant, has faced skepticism due to its substantial debt and concerns about its growth prospects. However, with its stock down 17% over three years and trading at a mere 7 times its estimated future earnings, investors may be undervaluing the company. Despite challenges, Bristol Myers Squibb has been innovating and acquiring new drugs, projecting $10 billion in annual revenue from its new products by 2026.
Moderna, a pioneer in messenger RNA technology, has seen its share price plummet 36% this year due to declining revenue and net losses. However, the company’s pipeline is bursting with promise, with 10 new products expected to win regulatory approvals over the next three years. Moderna’s next-generation COVID-19 vaccine and combination flu/COVID vaccine are nearing approval, and its respiratory syncytial virus vaccine has huge commercial potential.
Pfizer, once a darling of the pandemic era, has struggled to impress investors in recent years. However, the company has significantly expanded its pipeline through internal development and acquisitions, positioning itself for future success. With 113 programs in its pipeline, including six under review for approval, Pfizer’s revenue and earnings are poised to rebound. The company’s vaccine pipeline is particularly promising, and its results are already stabilizing.
These three healthcare stocks may be flying under the radar, but they possess the potential to deliver pleasant surprises to investors willing to take a closer look.
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