AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
- The MRNA stock grew around 50 per cent QTD.
- The PFE stock rose over 14 per cent QTD.
- The net income of Pfizer, Inc. (PFE) rose six per cent YoY in Q3 FY22.
Healthcare is one of the major sectors in the US. It is one of the vast sectors comprising some of the biggest companies, so the investors keep close track of the segment.
Historically, the healthcare sector maintained a stable momentum compared to other sectors during times of economic turmoil. One of the main reasons is that the healthcare sector's demand tends to remain stable irrespective of economic health.
As the population swells, the demand also remains stable in the healthcare sector. However, the ongoing year was somewhat different from the traditional one, with the healthcare sector also witnessing a notable decline. Investors have kept their distance from risk-bet assets amid the growing market uncertainties.
The healthcare sector received a significant boost during COVID-19 when the global markets relied on the sector. From vaccines against the COVID-19 virus to immunotherapeutics, the healthcare sector gained robust traction during the period.
So, let's explore two healthcare stocks, Moderna, Inc. (NASDAQ:MRNA) and Pfizer, Inc. (NYSE:PFE), and see how they have performed in recent months.
Moderna, Inc. (NASDAQ:MRNA)
The leading American biotechnology firm Moderna Inc's market cap was US$ 68.15 billion. The healthcare firm's stock, which specializes in developing RNA therapeutics and mRNA vaccines, slipped over 30 per cent YTD and around 50 per cent YoY.
However, the MRNA stock gained nearly 50 per cent in the current quarter through November end and was at its 52-week low of US$ 115.03 on September 29, 2022.
Moderna Inc's revenue fell from US$ 5 billion in Q3 FY21 to US$ 3.4 billion in Q3 FY22, while its net income declined 69 per cent YoY to US$ 1 billion in the quarter. The company said the year-over-year decline in revenue was mainly due to a slump in its COVID-19 vaccine sales.
Pfizer, Inc. (NYSE:PFE)
The leading pharmaceutical industry firm, Pfizer Inc's dividend yield was 3.23 per cent. The stock of the leading research-based biotechnology and pharmaceutical firm tumbled 15 per cent YTD and six per cent YoY.
However, the PFE stock gained over 14 per cent in the ongoing quarter through November end and was at its 52-week low of US$ 41.445 on October 11, 2022.
Pfizer Inc's revenue plunged six per cent YoY to US$ 22.63 billion, while its reported net income jumped the same percentage YoY to US$ 8.6 billion. The company said the decline in revenue was due to exceptionally strong quarterly growth achieved last year.
The biopharmaceutical firm now expects its revenue to be between US$ 99.5 billion and US$ 102 billion in fiscal 2022.
Source: ©Kalkine Media®; © Canva Creative Studio via Canva.com
Bottom line:
As said earlier, the healthcare sector was no exception in the choppy trading scenario in the broader market. The S&P 500 healthcare index slumped over one per cent YTD while gaining around seven per cent in the trailing 12 months, while the broader index fell 14 per cent YTD and about 10 per cent YoY.
Looking at the performance of the indexes, it is clear that the S&P 500 healthcare sector has outperformed the broader market. But given the persisting volatility and uncertainties in the market, investors should wisely make their investment plans.
