Pharmaceutical Sector

  • 23 Oct
    GILD is deeply undervalued – it it a good play in the current market?

    GILD is deeply undervalued – it it a good play in the current market?

    One of the legitimate challenges any investor faces when market tension is increasing is how far do you go to keep buying stocks when the market looks more and more like it could be reaching the kind of “sea change” turning point that could mark the beginning of a new bear market. There really isn’t a single correct, or best answer to that question; some of the most famous and successful value investors in the market, including Warren Buffett are well-known to keep buying stocks even when the rest of the market is actually going down. More →

  • 30 Dec
    Why Big Pharma Isn’t A Good Investment Right Now

    Why Big Pharma Isn’t A Good Investment Right Now

    • The pharmaceutical industry is facing regulatory headwinds amidst positive global trends.
    • Fundamentals show that all the positives are already priced in leaving more downside room than upside potential.

    Introduction

    The pharmaceutical sector has been one of the worst performers in 2016. It’s down 11.22% year-to-date while the S&P 500 is up 13.37%.

    From a longer-term perspective, the pharma sector has largely outperformed the S&P 500. From the low point in the 2009 financial crisis, the iShares U.S. Pharmaceuticals ETF (IHE) has gained 291% while the S&P 500 has gained 233%.

    Today, we’ll analyze sector trends, risks, and the fundamentals of potential pharmaceutical investments to see if the recent pullback is an investment opportunity. More →