Zacks.com announces the latest Industry Outlook. Today’s outlook from
Zacks Equity Research analyst Jason Napodano discusses the
pharmaceutical sector. Highlighted stocks include: Pfizer (NYSE:
PFE), Bristol-Myers Squibb (NYSE: BMY), Johnson & Johnson
(NYSE: JNJ), Merck & Co. (NYSE: MRK), and Eli Lilly
(NYSE: LLY).
Get the most recent insight from Zacks Equity Research with the free
Profit from the Pros newsletter: http://at.zacks.com/?id=2678
Here is the latest on the Pharmaceutical sector:
The industry’s cash position has never been stronger. Pfizer
(NYSE: PFE), one of our top-picks for 2009, is sitting on over $30
billion in cash. Other buy rated names, including Bristol-Myers Squibb
(NYSE: BMY) and Johnson & Johnson (NYSE: JNJ), are sitting on
$8 billion and $15 billion, respectively. This should allow for a
significant deal activity later in the year.
Given the difficult cash-raising environment during the second half of
2008, most small to mid-sized biotech firms are eager to partner with
pharmaceutical companies in 2009. Asset prices for early-to-mid stage
product candidates are very cheap, and pharmaceutical companies are now
willing to look at phase I and phase II candidates in 2009 – something
most managements have been hesitant to do in the past. This should
create a much better environment for the entire industry to push higher
in 2009 as sentiment on small biotech turns positive perhaps later in
the year.
Finally, large-cap pharmaceutical names are paying hefty dividends.
That’s something all investors should be looking for given the rocky
financial markets. Pharmaceutical companies are well-capitalized with
financial sound business models. Pfizer’s huge dividend of 7% is not
only very attractive, it is also safe. Bristol, Merck & Co.
(NYSE: MRK), and Eli Lilly (NYSE: LLY) are all yielding 5%.
Want more from Zacks Equity Research? Subscribe to the free Profit from
the Pros newsletter: http://at.zacks.com/?id=2679.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was
formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he
could find patterns in stock market data that would lead to superior
investment results. Amongst his many accomplishments was the formation
of his proprietary stock picking system; the Zacks Rank, which continues
to outperform the market by nearly a 3 to 1 margin. The best way to
unlock the profitable stock recommendations and market insights of Zacks
Investment Research is through our free daily email newsletter; Profit
from the Pros. In short, it's your steady flow of Profitable ideas
GUARANTEED to be worth your time! Register for your free subscription to
Profit from the Pros at http://at.zacks.com/?id=4581.
Visit http://www.zacks.com/performance
for information about the performance numbers displayed in this press
release.
Disclaimer: Past performance does not guarantee future results.
Investors should always research companies and securities before making
any investments. Nothing herein should be construed as an offer or
solicitation to buy or sell any security.
Zacks.com
Mark Vickery
Web Content Editor
312-265-9380
Visit:
www.zacks.com
