AbbVie Inc. (NYSE: ABBV)

Shares of medical companies

Dividends, steady growth, big profits – shares of medical companies have many advantages.

Unlike other sectors of the economy, securities in healthcare greatly benefit from a simple and irreversible trend – the baby boom generation is aging. In the United States, approximately 10,000 baby boomers retire every day. Even the youngest representatives of this social group, born in 1964, will reach retirement age until 2029-2030..

Given the inevitable health problems that accompany old age, we can talk about the demand for the products of these companies.

In this selection, seven shares from the health sector, which last year grew by 23%.

[Note: Stock prices and indicators in the article are indicated at the time of publication. You can see the current stock prices in a special widget at the end of the text. Before buying stocks, always do your own analysis. Investing money carries the risk of losing it. This article was published for review, not a call to purchase.]

1. AbbVie Inc. [NYSE: ABBV]

• Stock Price: $ 89.90

This biopharmaceutical giant has a capitalization of $ 139 billion and offers investors dividends of 4.18%. During 2017, the company’s shares added more than 50%.

Celgene and ABBV are the fastest growing pharmaceutical companies in the world. Both expect revenue growth of 15% in 2018..
True, it is worth noting that ABBV is dependent on one drug – Humira. But despite the risks associated with this, AbbVie is still regarded by many experts as a good asset. The fact is that Humira is protected by a patent until 2022. This will support the demand, although competitors seek to bring similar products to the market..

2. Regeneron Pharmaceuticals Inc. [NASDAQ: REGN]

• Stock Price: $ 395.22

Regeneron has not paid dividends since the early 1970s, but REGN shares remain a good option for healthcare investments. The company’s capitalization is $ 43 billion.

Analysts expect revenues to reach $ 6.39 billion in 2018. This is 9% more than the previous year, and 204% more than in 2013.

Eylea Regeneron, designed to treat age-related macular degeneration and other retinal diseases, generates 80% of the company’s revenue. But REGN is not static and plans to release other products. In 2017, new drugs against rheumatoid arthritis and eczema were approved. There are promising drugs in development that are in the 2nd and 3rd phases of testing. All this should contribute to further growth..

3. Celgene Corp. [NASDAQ: CELG]

• Stock Price: $ 82.95

This is a biotechnology company that develops and markets drugs for cancer treatment. Last October, Celgene had a big drawdown (-30%) due to unsuccessful studies. Therefore, the company reduced long-term revenues and EPS. But the benefit of buying Celgene is simple math. Assuming an extremely conservative P / E 16 (10-year low of 17.9), and applying it to EPS’s recently revised $ 12.5 for 2020, we get a target price of $ 200.

If the entire market does not double in the next three years, the shares of medical companies will receive a bright leader in the form of CELG, which makes it a good option to buy right now.

4. Editas Medicine Inc. [NASDAQ: EDIT]

• Stock Price: $ 28.35

EDIT is not yet a key player in the industry, but has every chance of turning into it. The founders of the company turned out to be one of those scientists who first discovered CRISPR – technology for editing problematic DNA sequences.

It sounds cool, but now Editas Medicine is an all-or-nothing game, so you should not sell an apartment, hoping for a price spurt.

5. Johnson & Johnson [NYSE: JNJ]

• Stock Price: $ 139.50

JNJ does not look as significant as Editas, but shares of medical companies should not constantly feel the enthusiasm of investors. It is not a prerequisite to be one of the best securities in healthcare..

Johnson Business&Johnson is well diversified, the company is increasingly focusing on the aggressive expansion of the pharmaceutical business. For example, after the purchase of the European Actelion in 2017 for $ 30 billion, pharmaceutical revenues grow faster than from medical devices and consumer goods.

Now Johnson&Johnson has 35 treatments for various diseases in the third phase of clinical trials. Investors have a dividend income of 2.58%, which has been gradually increasing for several decades.

6. Ligand Pharmaceuticals Inc. [NASDAQ: LGND]

• Stock Price: $ 197.06

Ligand Pharmaceuticals is a growing company with an average capital of more than $ 4 billion, which should at least be added to your watchlist..

Ligand helps other pharmaceutical companies develop and discover drugs. Drug research is an area of ​​high demand for outsourcing, and analysts expect EPS LGND to be around 27% per year over the next five years.

While LGND is growing, stocks may need several years to be valued by the market. Given this, they remain a good option for long-term investment..

7. Alkermes PLC [NASDAQ: ALKS]

• Stock Price: $ 40.80

This biotechnology company based in Dublin is difficult to analyze using traditional metrics. Massive and sustainable investments in research and development and development work make it possible to break even. This, in turn, leads to a fictitious P / E ratio.

On the other hand, Alkermes focuses on the development of treatment methods for drug addiction and mental illness. Both of these areas are lacking in technology, so the demand is provided..

Four of the company’s products are currently undergoing Phase 3 trials or the FDA approval phase. Alkermes is already releasing drugs for the treatment of schizophrenia, bipolar disorder, alcohol and opioid dependence. ALKS looks promising, even if it takes several years to achieve a stable profit..

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