Top healthcare stocks to watch in Q2: ABBV, BMY, ABC, VRTX & MCK

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Top healthcare stocks to watch in Q2: ABBV, BMY, ABC, VRTX & MCK

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 Top healthcare stocks to watch in Q2: ABBV, BMY, ABC, VRTX & MCK
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Highlights

  • AbbVie Inc. (NYSE: ABBV) has a P/E ratio of 25.09. Its dividend yield is 3.5%.
  • Bristol-Myers Squibb Company's (NYSE: BMY) dividend yield is 2.95%, the annualized dividend is US$2.16, and the P/E ratio is 23.35.  
  • AmerisourceBergen Corporation (NYSE: ABC) has a P/E ratio of 19.96, and its dividend yield is 1.19%.

Healthcare sector companies provide healthcare-related products and services. It is one of the sectors with a complex chain of stakeholders, including drugmakers, medical device makers, medical insurance providers, hospitals, healthcare service providers, etc.

Some of the big companies in the sector include Pfizer Inc. (PFE), UnitedHealth Group Inc. (UNH), and CVS Health Corp. (CVS). Although the COVID-19 threat is on the wane, healthcare companies are still in demand for various drugs and services. 

Here we discuss five healthcare stocks worth exploring now. 

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McKesson Corporation (NYSE: MCK) 

Closing price on March 28, 2022: US$308.49

McKesson is a wholesaler of generic, branded, and specialty pharmaceutical products. Irving, Texas-based McKesson sells to pharmacies, healthcare providers, and hospitals networks.  

The company booked revenue of US$68.6 billion for the quarter ended December 31, 2021, compared to US$62.6 billion in the same period a year ago. 

Its net income was US$39 million or US$0.04 per diluted share versus a net loss of US$6,226 million or US$39.03 per share diluted in the December quarter of 2020. The difference in net income YoY is due to the claims and litigation charges in 2020.

The company has a market capitalization of US$45.98 billion and a P/E ratio of 34.53. Its stock traded in the range of US$310.48 to US$180.41 in the last 52 weeks.

The stock was down 0.34% at US$307.44 at 11:32 am ET on Tuesday. 

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Top healthcare stocks to watch in Q2: ABBV, BMY, ABC, VRTX & MCKSource: © 2022 Kalkine Media ® 

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AbbVie Inc. (NYSE: ABBV) 

Closing price on March 28, 2022: US$161.97 

AbbVie is a pharmaceutical company based in North Chicago, Illinois. It has exposure to immunology and oncology drug development. 

For the fiscal year 2021, Abbvie posted revenue of US$56.2 billion compared to US$45.8 billion a year ago. 

The net income attributable to the company came in at US$11.54 billion or US$6.45 per diluted share compared to US$4.6 billion or US$2.72 per diluted share in the fiscal ended December 31, 2020.  

In March, the company received FDA approval for its drug to treat adults suffering from moderate to severe active ulcerative colitis (UC).

The company has a market capitalization of US$285.8 billion. Its P/E ratio is 25.09, and the dividend yield is 3.5%. ABBV stock traded in the range of US$162.03 to US$104.17 in one year.

The stock traded at US$161.87, down 0.06% at 11:32 am ET on Tuesday.

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Bristol-Myers Squibb Company (NYSE: BMY)

Closing price on March 28, 2022: US$73.11 

Bristol-Myers Squibb is engaged in discovering, developing, and marketing drugs for cardiovascular, oncology, and immune disorders. New York-based Bristol has exited various nonpharmaceutical businesses to focus on branded specialty drugs. 

The company booked total revenue of US$46.39 billion in the Fiscal year 2021 compared to US$42.52 billion in the previous year. It earns revenue from product sales and alliances. The net income attributable to the company rose to US$6.99 billion or US$3.12 per share diluted versus a net loss of US$9.02 billion or US$3.99 per diluted share.  

The company has a market capitalization of US$154.82 billion and a P/E ratio of 23.35. The stock's dividend yield is 2.95%, with an annualized dividend of US$2.16. 

BMY stock traded in the range of US$73.74 to US$53.22 in the last 52 weeks. The stock fell 0.21% and traded at US$72.96 at 11:33 am ET Tuesday.

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AmerisourceBergen Corporation (NYSE: ABC)

Closing price on March 28, 2022: US$154.73 

Pennsylvania based AmerisourceBergen is a pharmaceutical wholesaler. The company is engaged in sourcing and distributing branded, generic, and specialty pharmaceutical products to hospital networks, healthcare providers and pharmacies. 

The company will release its Q2, 2022 earning results on May 4, 2022.  

For the first quarter ended December 31, 2021, the company posted revenue growth of 13.5% YoY to US$59.6 billion. The net income came in at US$449 million or US$2.13 per diluted share compared to US$378.7 million or US$1.81 per diluted share in the previous year’s corresponding quarter. 

The company has a market capitalization of US$32.19 billion and a P/E ratio of 19.96. Its dividend yield is 1.19%, and the annualized dividend is US$1.84. The ABC stock traded in the range of US$155.76 to US$111.34 in the last 52 weeks.

It traded at US$154.785, up 0.04% at 11:33 am ET on March 29.

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 Top healthcare stocks to watch in Q2: ABBV, BMY, ABC, VRTX & MCK

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Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX)

Closing price on March 28, 2022: US$255.72

Vertex Pharmaceuticals is a biotechnology company based in Boston, Massachusetts. The company discovers and develops small-molecule drugs for treating serious diseases. 

For the fiscal year ended December 31, 2021, its revenue increased 22% YoY to US$7.57 billion compared to US$6.21 billion in the previous Fiscal. The net income rose 14% YoY to US$2.34 billion or US$9.1 per diluted share compared to US$2.71 billion or US$10.29 per share diluted in fiscal 2020. 

The company has a market capitalization of US$64.44 billion and a P/E ratio of 28.03. Its stock traded in the range of US$258.25 to US$176.36 in the last 52 weeks.

The stock was down 0.77% to US$253.76 at 11:33 am ET on Tuesday, March 29. 

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Bottom line:

Healthcare companies came into focus during the COVID-19 pandemic. Vaccine makers were the biggest gainers from the covid emergency. Though the virus still exists, the vaccines have enhanced people's immunity, reducing serious cases. However, investors must carefully analyze the company's fundamentals and the broader market before investing in stocks.

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