Wednesday, July 11, 2012

9 Pharma Buys for a Healthy Portfolio

Big Pharma gets a bad rap these days due to patent expirations threatening some of the major players. But their juicy dividends are very attractive, and some pharmaceutical stocks have made great progress in developing a new pipeline of drugs that will replace lost revenue from previous blockbusters.

I watch more than 5,000 publicly traded companies with my Portfolio Grader tool, ranking companies by a number of fundamental and quantitative measures. And this week, I’ve found nine pharmaceutical stocks for you to buy.

Each one of these stocks gets an �A� or �B� according to my research, meaning it is a �strong buy� or �buy.� Here they are:

Novo Nordisk (NYSE:NVO) is a pharmaceutical company broken into two divisions: Diabetes and Biopharmaceuticals. In the last year, NVO stock has posted a gain of 20%, compared to a gain of 14% for the Dow Jones in the same time. Novo Nordisk stock gets a �B� grade for operating margin growth, a �B� grade for earnings growth, a �B� grade for its ability to exceed the consensus earnings estimates on Wall Street, a �B� grade for the magnitude in which earnings projections have increased over the past months and an �A� grade for return on equity. For more information, view my complete analysis of NVO stock.

Valeant Pharmaceuticals (NYSE:VRX) is a multinational, specialty pharmaceutical company that is up 37% in the last year. Valeant stock gets an �A� grade for sales growth, an �A� grade for earnings momentum, a �B� grade for its ability to exceed the consensus earnings estimates on Wall Street and an �A� grade for the magnitude in which earnings projections have increased over the past months. For more information, view my complete analysis of VRX stock.

GlaxoSmithKline (NYSE:GSK) deals with vaccines, over-the-counter medicines and health-related consumer products. In the last 12 months, GlaxoSmithKline stock has jumped 24%, compared to smaller gains by the broader markets. GSK stock gets a �B� grade for earnings momentum and an �A� grade for return on equity. For more information, view my complete analysis of GSK stock.

Abbott Laboratories (NYSE:ABT) discovers, develops, manufactures, and sells a range of health care products. In the last 12 months, ABT stock has gained 18%. ABT stock gets an �A� grade for return on equity. For more information, view my complete analysis of ABT stock.

Eli Lilly & Co. (NYSE LLY) manufactures and distributes its products through facilities in the United States, Puerto Rico and 15 other countries. Since last March, LLY stock has jumped 19%. Lilly stock gets a �B� grade for its ability to exceed the consensus earnings estimates on Wall Street, a �B� grade for cash flow, and an �A� grade for return on equity. For more information, view my complete analysis of LLY stock.

Johnson & Johnson (NYSE:JNJ) is well-known across the world for its numerous consumer healthcare product brands. Johnson & Johnson has posted a gain of 12% in the past year. JNJ stock gets an �A� grade for return on equity. For more information, view my complete analysis of JNJ stock.

Pfizer Inc. (NYSE:PFE) develops treatments for cardiovascular and metabolic diseases, central nervous system disorders, urogenital conditions, eye disease and endocrine disorders, among others. In the last year, Pfizer stock is up 14%. PFE stock gets a �B� grade for cash flow and a �B� grade for return on equity. For more information, view my complete analysis of PFE stock.

Merck & Co. (NYSE:MRK) is involved with prescription medicines, vaccines, biologic therapies, animal health and consumer care products. MRK has recorded a 23% gain in the last year. Merck stock gets an �A� grade for operating margin growth a �B� grade for cash flow, and a �B� grade for return on equity. For more information, view my complete analysis of MRK stock.

Sanofi (NYSE:SNY) operates with six business segments: diabetes solutions, human vaccines, innovative drugs, consumer health care, emerging markets and animal health. SNY is the last stock to make the list, with a 23% gain since last March. Sanofi stock gets an �A� grade for sales growth, an �A� grade for earnings momentum, a �B� grade for cash flow and a �B� grade for return on equity. For more information, view my complete analysis of SNY stock.

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier�s Portfolio Grader tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

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