Investing in the stock market can sometimes feel like a game where everyone is scrambling to buy the hottest, trendiest stocks. But what about the ones that don’t get as much attention? The ones that fly under the radar and are often overlooked? These underrated stocks can sometimes be hidden gems, offering great potential for growth and returns.
At Extreme Investor Network, we believe in looking beyond the obvious choices and uncovering hidden opportunities in the market. Today, we want to highlight three pharmaceutical stocks that our experts consider to be surprisingly underrated and worth considering for your portfolio – AstraZeneca (NASDAQ: AZN), Pfizer (NYSE: PFE), and Viatris (NASDAQ: VTRS).
AstraZeneca: A Growth Machine Trading at a Discount
Despite being one of the largest healthcare stocks in the world, AstraZeneca is often underrated in the eyes of investors. With a market cap of $250 billion, the stock is trading at a light valuation compared to its peers. What sets AstraZeneca apart is its consistent growth and impressive acquisitions, such as the recent purchases of Amolyt Pharma and Fusion Pharma.
The company expects to see significant revenue growth in the coming years, with estimates projecting up to $80 billion in annual revenue by the end of the decade. With a strong profit margin and earnings expected to surpass $10 billion, AstraZeneca presents an attractive opportunity for investors looking for long-term growth potential.
Pfizer: More to the Story with This Big Drugmaker
Pfizer may have faced challenges in recent years, but our experts believe there is more to the story with this pharmaceutical giant. While the COVID revenue may have dipped, the company is positioned to rebound with a potential combination COVID-flu vaccine on the horizon. Additionally, Pfizer has made strategic investments in research and development, as well as acquisitions, to bolster its pipeline and offset patent expirations.
Trading at a low multiple of 13 times forward earnings and offering a forward dividend yield over 5.5%, Pfizer presents a compelling opportunity for investors who are willing to look beyond its recent setbacks.
Viatris: A Deeply Discounted Dividend Play
Viatris may not have impressed with its recent financial results, but the company’s potential as an undervalued dividend play should not be overlooked. With a forward price-to-earnings ratio well below industry averages, Viatris is positioning itself as a leaner company focused on high-growth opportunities.
With a diverse portfolio of generics and biosimilars, including iconic brands like Viagra, Viatris offers investors a stable revenue stream and a forward dividend yield of 4.17%. As the company moves towards a more focused strategy and increasing revenue, dividend investors should consider adding Viatris to their portfolio.
At Extreme Investor Network, we believe in uncovering hidden gems in the stock market and providing valuable insights for our readers. These three pharmaceutical stocks – AstraZeneca, Pfizer, and Viatris – offer unique opportunities for growth and value that may have been overlooked by others. Consider adding them to your watchlist and explore the potential they hold for your investment portfolio.