Pro Research of the Week: Is Pfizer the Best Bet Among Big Pharma Stocks?

investing.com:

Earnings season is in full swing, and next week, we've got our sights set on the healthcare sector, specifically pharmaceutical and biotechnology companies, as they get ready to reveal their quarterly results.

So, let's jump right into the analysis and find out which of these companies hold the most promising buying opportunities at their current price levels.

To make this assessment, we're counting on the InvestingPro fundamental analysis tool. We have compiled an InvestingPro watchlist that highlights key pharmaceutical and biotechnology stocks scheduled to release their Q2 results next week.

Moderna (NASDAQ:MRNA), Gilead (NASDAQ:GILD), CVS Health (NYSE:CVS), Vertex (NASDAQ:VRTX), Pfizer (NYSE:PFE) and Merck & Company (NYSE:MRK) feature on our watchlist.

According to the watchlist, all the stocks on the list show a 'very good' overall financial health score.

When it comes to analyst opinions, it's important to note that, except for Moderna, all the stocks on this list are considered fairly valued with limited upside potential. Analysts predict Moderna's growth at an impressive 65.8% over the next 12 months.

InvestingPro's Fair Value metric, which combines various recognized financial models, projects over 47% upside potential for CVS Health and Pfizer and 28% for Gilead, indicating that these stocks are undervalued. On the other hand, InvestingPro models label Moderna, Vertex, and Merck as fairly valued.

We also looked at their Price-to-Earnings Ratio (PER) to further differentiate these healthcare stocks. Pfizer stands out with the lowest PER of 7.2, while Vertex tops the list with a PER of nearly 28, making it the most expensive. For comparison, the average PER for pharmaceutical stocks similar to Pfizer is 14.2.

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