PFE and MRK: 2 top healthcare stocks to watch following Q2 results

Published on July 28, 2022 11:59 AM PDT

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Mridul Gogoi

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Mridul has worked as a senior writer and editor in the corporate sector for over 15 years. He wrote on various subjects, such as travel, e-commerce, healthcare, technology, and sports. At Kalkine, he writes on stock markets, companies, earnings, equi...
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PFE and MRK: 2 top healthcare stocks to watch following Q2 results — Image source: © Vistby | Megapixl.com

Highlights

Pfizer, Inc. (NYSE: PFE) reported a net income of US$9.90 billion in the second quarter of fiscal 2022.

Merck & Co. Inc.' (NYSE: MRK) GAAP net income for the second quarter of 2022 was US$3.94 billion.

PFE’s Q2 FY2022 revenue of US$27.7 billion was majorly boosted by its COVID-19 vaccines, Paxlovid and Comirnaty, the company said.

With healthcare companies like Pfizer, Inc. (NYSE: PFE) and Merck & Co. Inc. (NYSE: MRK) releasing their latest quarterly reports this week, the market also seems to be moving in tandem. Investors appear to be closely monitoring the performances of sectors and companies alike.

So, let's look at PFE and MRK stocks that released their quarterly earnings on July 28, 2022.

Pfizer, Inc. (NYSE: PFE)

One of the largest pharmaceutical companies in the world, Pfizer reported revenue of US$27.7 billion for the second quarter of fiscal 2022.

Its Q2 FY22 net income was US$9.90 billion compared to US$5.56 billion in the year-ago quarter. Pfizer's Q2 FY22 diluted earnings per share (EPS) was US$1.73, a 77 per cent growth compared to the same quarter in 2021.

Pfizer's adjusted diluted EPS was US$2.04 for the second quarter of fiscal 2022, a 92 per cent increase from the previous year's second quarter.

Pfizer currently pays a quarterly dividend of US$0.40. It held a price-to-earnings (P/E) ratio of 11.90 as of writing.

PFE stock has a one-month return of 31.1 per cent. Its quarter-to-date returns fell 0.36 per cent. As per Refinitiv data, PFE stock had a Relative Strength (RSI) Index of 54.66 on July 28.

In June 2022, Pfizer and BioNTech announced a new agreement with the US government to deliver surplus doses of the COVID-19 vaccine.

Merck & Co. Inc. (NYSE: MRK)

Merck & Co. reported worldwide sales of US$14.6 billion in Q2 FY22, a 28 per cent jump from US$11.4 billion in the same quarter last year.

Merck & Co.’s GAAP net income in the second quarter of fiscal 2022 was US$3.94 billion against US$1.21 billion in the corresponding quarter of the previous year.

Merck’s current dividend rate is US$0.69, which is payable by October 7, 2022. Merck & Co. has a three-year dividend growth of 7.86 and a five-year dividend growth of 7.89.

Bottom line

Pfizer and Merck’s latest earnings results can have some impact on the market amid the decades-high inflation and the central bank’s continuous interest rate hikes. The US Fed Reserve has again increased the interest rate by 75 basis points in July, which some experts believe can push the economy closer toward recession.