Pharma penny stocks
With covid-19 taking over every nook and corner of the world, the world has never looked more desperate. Now, it’s upon the pharmaceutical companies to bring everything back to normalcy and they deserve all the attention they have been getting since march this year. Normally, developing a vaccine takes years but this time around companies have managed to reach up to 95% accuracy in a span of less than a year, which is quite commendable. From this we can say, we have come a long way.
Why Pharma stocks
Pharma stocks are now being talked about everywhere. In the past few months, you must have come across names like AstraZeneca, Pfizer, Moderna, and many other pharma biggies. These are the frontrunners in the vaccine race. Now, drugs are a part of every household and are poised to become an essential commodity in the coming years which is why you should consider having at least one or two biotech stocks in your portfolio. It’s low volatility also helps an investor diversify well and hedge against potential losses.
My top picks below $10
Like any sector, the key fundamental analysis remains the same. However, a pharma company indulged in breakthroughs in research is always considered better. The sector may have garnered a lot of attention only due to covid-19, but you should also look for other areas of research that a company is involved in. For instance, if a company is into very prevalent ailments like AIDS or Alzheimer’s, there are high chances the company is going to be profitable, given the demand. In this sector, you will barely find dividend-paying stocks as this is a research-intensive sector and companies like to reinvest their earnings into research. The industry PE for pharma stocks in the US is about 28 and the stocks I picked have lower PEs. All of them have positive cashflows and two of them even pay dividends. This analysis of stocks is purely based on marketXLS platform.
Hypera SA (ADR)
Hypera is the largest Brazilian pharma company based in Sao Paulo. It majorly deals in branded prescription, consumer health, and branded generics. The Company specializes in the development of pharmaceuticals, dermo-cosmetics, vitamin supplements, and health products. Hypera serves customers worldwide. The stock is available in the USA with ADRs.
Biosyent is a Canadian specialty pharma company based in Ontario. It acquires in-licenses and develops pharma products for sale in Canada and overseas. It has four business units: The Community and Women’s Health Unit, which commercializes pharmaceutical products focused on improving family and women’s health; the Hospital Business Unit, which sells pharmaceutical products to hospitals and hospital specialists; the International Pharmaceutical Unit, and the Legacy Business.
Fosun is a Chinese pharma company listed on the Hong Kong stock exchange. It develops diagnosis as well as medical device products. It made it into my list because of its recent developments in the covid-19 vaccine space. It has already started phase 2 clinical trials of their vaccine and will be supplying them in china.
Integrated Biopharma Inc.
Integrated Biopharma is a US-based pharma company providing services mainly in Canada, the USA, and Luxembourg. This company is engaged in manufacturing, distributing, marketing, and sale of vitamins, nutritional supplements, and herbal products.
Raia Drogasil (ADR)
RD is the largest drugstore company in Latin America by revenue and market capitalization. The company is headquartered in São Paulo and has 1,900 stores in 24 Brazilian states. Raia Drogasil SA is engaged in retail sales of medications, specialty medicines, perfumery, personal care, and beauty products, cosmetics, and dermo-cosmetics.
Below is a picture to give a brief idea of how the analysis is done on marketXLS.
The bottom line
Summing up, there are some good stocks even below $10. All you need to do is thorough research before investing. However, the pharma sector is always a safe bet because of the low volatility and ever-growing demand for drugs and medication. Coming to the analysis, this is just a glimpse of what marketXLS is capable of. You can download any type of data of a particular stock and play around with it in excel.
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