Let’s get right on it. “Big Pharma,” shorthand for the worldwide pharmaceutical industry, is made up of enormous businesses that boast profits in the billions. The industry has always reserved ample leeway for innovation, and they haven’t looked back, with breakthroughs at every turn. Annual industry-wide sales are expected to hit a walloping $1.5 trillion in 2023, quickly making it one of the largest industries globally.
We already know that the pharmaceutical/biotech sector held steady during the pandemic due to the need for vaccinations, making their stocks less susceptible to downturns than others. Also noteworthy is that the pharmaceutical business has, over time, often proven to be a safe haven for capital investments. The sector, on its own accord, offers consistent returns over time. The iShares U.S. Pharmaceutical ETF (IHE), which monitors the performance of the rockstar U.S. pharmaceutical industry, has returned over 11% per year over the last decade and has reported positive returns for eight of the last ten years.
Let’s try to have fun while I break down three big pharma names with nearly uncontested buy ratings, branding them winners among today’s tickers and strong contenders for our portfolios!:
Merck & Co Inc (MRK)
Merck & Co. Inc (MRK) provides health solutions through prescription medications, vaccines, biological treatments, animal health, and consumer care. MRK operates in two differing but essential segments: Pharmaceutical and Animal Health. Drugs and vaccines for human use primarily make up the Pharmaceutical sector. Meanwhile, MRK’s Animal Health sector develops, produces, and distributes animal medications and products for treating and managing illnesses, both in livestock and in species commonly kept as pets. MRK was formed in 1891 and is based in Kenilworth, New Jersey.
MRK has seamlessly exceeded Wall Street analysts’ earnings projections for three consecutive quarters. Most recently, EPS was bested by 17.11%, and revenue estimates were beaten by 8.55%. These are significant margins for any report. MRK shows year-over-year revenue growth of 49.63% and EPS growth of 36%. MRK has a median price target of 100.00, with a high of 115.00 and a low of 85.00 from analysts providing annual price estimates. The consensus estimate implies an 8.83% price increase, but there is no implication necessary for MRK’s buy rating, as it speaks for itself. MRK has a dividend yield of 2.88%, with 69 cents per share being paid out quarterly.
Celsius Holdings Inc (CELH)
Celsius Holdings, Inc (CELH) creates, promotes, and sells a unique brand of energy drinks and liquid supplements in North America, Asia, Europe, and other locations globally. CELH’s goods are distributed by direct-to-store distribution and direct to merchants, including anything from supermarkets to spas, the military, and e-commerce sites. CELH was established in 2004 and is based in Boca Raton, FL.
CELH arrived to last quarter’s earnings call with great numbers; for example, it beat EPS projections by a staggering 178.04%. When looking at CELH’s stats, I can’t help but picture an up-and-coming sports franchise. You know? …It’s here! Let’s look at what year-over-year tells us! CELH’s “Revenue” weighs in at 166.59%, “Net Income” proudly hits 1,041.71%, “Diluted EPS” comes in at an even 800%, “EBITDA” hits his 846.98% goal, and “Net Profit Margin” shows us a lean 328.21%! Wow! This incredible roster from the young and hungry CELH ball club ‘the Celsiuae’ shows a talented ensemble deserving of only one comparison: The Legendary 1990’s Chicago Bulls Dynasty!” (with all due respect and admiration for Michael Jordan, Scotty Pippen, Dennis Rodman, Steve Kerr, Tony Kukoch, and Coach Phil Jackson)…
Jokes aside, the 12-month price forecast for CELH has a median target of 78.50, with a high of 120.00 and a low of 55.00. The median represents a 23.21% increase from the most recent price, and I engaged in enough editorial recklessness to stress that this buy rating didn’t just fall from the sky. Hell, CELH reminded me of the fiercest basketball team from my childhood! We should probably buy stock in CELH.
Photronics Inc (PLAB)
Photronics, Inc (PLAB) and its subsidiaries produce and sell photomask products and services in the U.S., China, Europe, Taiwan, Korea, and elsewhere globally. PLAB uses photomasks in the fabrication of integrated circuits and flat panel displays (FPDs), as well as in the transfer of circuit designs onto semiconductor wafers, FDP substrates, and certain other forms of specialized equipment. Through solid sales and customer support, PLAB offers its successful ensemble of modern tech-related products to chipmakers, FPD manufacturers, designers, foundries, and other high-performance electronics makers. PLAB was founded in 1969 and is headquartered in Brookfield, Connecticut.
PLAB is one of those sector showoffs that blows through like a hurricane every fiscal quarter, reporting earnings that always crush what’s forecasted. Its last report beat analysts’ EPS estimates by 40% and revenue projections by 6.31%. PLAB is posting definitively positive year-over-year growth in vital areas. Analysts providing 12-month price estimates for PLAB have a consensus target of 26.00, with a high of 30.00 and a low of 23.00. The forecast is a 34.44% gain over current pricing, and PLAB has a buy rating which is no surprise given the stock’s growing popularity and momentum – a couple of pretty good indicators of success, right?
