2 Pharma Stocks to Buy Now for Big Gains

NYSE: AZN | AstraZeneca PLC ADR News, Ratings, and Charts

AZN – The pharma industry is well-placed to benefit from the rise of chronic diseases and an aging population. Moreover, given the stable demand for medicines, the industry is relatively unaffected by macroeconomic uncertainty. Therefore, it could be wise for investors to buy fundamentally strong pharma stocks AstraZeneca (AZN) and Novartis (NVS). Let’s discuss….

The pharmaceutical industry was in the limelight during the pandemic as it came up with therapies and vaccines. The industry has seen significant growth across multiple areas over the past few years, aided by research and development.

The industry’s growth is expected to be driven by a rapidly aging population and the rise of various lifestyle diseases spawning out of poor health choices. According to Statista, worldwide pharmaceutical revenue is expected to grow at a CAGR of 5.4%, reaching $1.44 trillion by 2027.

Moreover, thanks to the inelastic demand for medicines, the pharmaceutical industry is known to weather turbulent times relatively well. With concerns of a recession looming large, investing in pharmaceutical stocks could offer a safe haven for investors.

In addition, investors’ interest in pharma stocks is evident from iShares U.S. Pharmaceuticals ETF’s (IHE) 5.4% returns over the past three months.

To that end, it could be wise for investors to buy fundamentally strong pharmaceutical stocks AstraZeneca PLC (AZN - Get Rating) and Novartis AG (NVS - Get Rating) to garner big gains this year.

AstraZeneca PLC (AZN - Get Rating)

Headquartered in Cambridge, the United Kingdom, AZN, a biopharmaceutical company, focuses on the discovery, development, manufacturing, and commercialization of prescription medicines. It markets products for cardiovascular, renal, and metabolism diseases, oncology, respiratory, and immunology, as well as rare diseases.

On November 16, 2022, Alexion and AZN group AstraZeneca Rare Disease announced the completion of its acquisition of LogicBio Therapeutics, Inc. (LOGC), a genomic medicine company. The acquisition is expected to boost the company’s operative capability.

AZN’s total revenue for the third quarter that ended September 30, 2022, increased 11.3% year-over-year to $10.98 billion. The company’s gross profit increased 31% year-over-year to $8 billion. Its operating profit increased 174.4% year-over-year to $1.25 billion. Additionally, its EPS came in at $1.06, compared to a loss per share of $1.10 in the year-ago period.

Analysts expect AZN’s EPS and revenue for the quarter ending June 30, 2023, to increase 11.6% and 5.9% year-over-year to $0.96 and $11.40 billion, respectively. The stock has gained 20.1% over the past three months to close the last trading session at $66.28. 

AZN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, equating to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

Within the Medical – Pharmaceuticals industry, it is ranked #18 out of 169 stocks. It has a B grade for Growth and Sentiment.  

In total, we rate AZN on eight different levels. Beyond what we stated above, we have also given AZN grades for Value, Momentum, Stability, and Quality. Get all AZN ratings here

Novartis AG (NVS - Get Rating)

Headquartered in Basel, Switzerland, NVS researches, develops, manufactures, and markets healthcare products worldwide. The company operates through two segments, Innovative Medicines and Sandoz.

On December 6, 2022, NVS and MorphoSys AG’s (MOR), a fully-owned subsidiary of Constellation Pharmaceuticals, Inc., entered a global licensing agreement. The agreement aims to enhance research and develop and commercialize pre-clinical inhibitors of a novel cancer target. This partnership in oncology is expected to be beneficial for NVS.

For the fiscal third quarter that ended September 30, 2022, NVS’ total liabilities declined 10% to $57.57 billion, compared to $63.97 million for the fiscal year ended December 31, 2021. Its cash and cash equivalents came in at $8.73 billion, representing an increase of 21% year-over-year. Also, its net income came in at $1.57 billion. 

Analysts expect NVS’ EPS for the quarter that ended December 31, 2022, to increase 3.8% year-over-year to $1.45. Its revenue for the fiscal year 2023 is expected to increase 1.5% year-over-year to $52.01 billion. Over the past three months, the stock has gained 18.4% to close the last trading session at $92.02. 

NVS’ POWR Ratings reflect this promising outlook. NVS has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. It is ranked #11 in the same industry. It has an A grade for Stability and a B for Value, Sentiment, and Quality.

Click here to see NVS’ POWR Ratings for Growth and Momentum.

Want More Great Investing Ideas?

3 Stocks to DOUBLE This Year


AZN shares were trading at $66.84 per share on Wednesday afternoon, up $0.56 (+0.84%). Year-to-date, AZN has declined -1.42%, versus a 4.39% rise in the benchmark S&P 500 index during the same period.


About the Author: Malaika Alphonsus


Malaika's passion for writing and interest in financial markets led her to pursue a career in investment research. With a degree in Economics and Psychology, she intends to assist investors in making informed investment decisions. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
AZNGet RatingGet RatingGet Rating
NVSGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Stock Market Update: It’s Complicated!

The S&P 500 (SPY) may have bounced 17% from recent lows, but the outlook for stocks from here is...in a word...COMPLICATED. Read on to get Steve Reitmeister full market outlook and trading plan for this complicated market environment.

Becoming More Bullish on Stocks, But...

Stocks are on a roll with the S&P 500 (SPY) up more than 10% from the recent lows. Before you start getting too giddy, you should read this updated market outlook and trading plan Steve Reitmeister.

Stock Market Held Hostage

Uncertainty is the term most often applied to this stock market. Uncertainty over tariffs. Uncertainty of whether the S&P 500 (SPY) will fall into bear territory. Uncertainty over what happens next. Steve Reitmeister dives into the uncertainty to make sense of the market in this week’s commentary...

Stock Market Standing on the 50 Yard Line

Steve Reitmeister contemplates where the stock market stands now and what happens next in trying to stay on the right side of the market action. One path points to bear and one to new highs for the S&P 500 (SPY). Which will it be?

Bear or Bull Market?

The S&P 500 is on the brink of bear market territory...but that outcome is not a given at this time. Steve Reitmeister shares insights gleaned from his 45 years of investing to shine a light on current conditions along with his top picks...

Read More Stories

More AstraZeneca PLC ADR (AZN) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All AZN News