When Bristol-Myers (NYSE:BMY) posted quarterly results but the stock stumbled to yearly lows, it looked like markets would pressure drug stocks. That is not the case.
In the third quarter, BMY posted strong revenue from its new product portfolio. Revlimid, Opdivo, Eliquis, and the new product portfolio lifted revenue by 10% Y/Y to $11.6 billion. Eliquis revenue rose by 15% Y/Y to $2.4 billion.
BMY stock is very inexpensive.
AbbVie (NYSE:ABBV) posted EPS of $3.33, while revenue grew by 11.2% Y/Y to $14.34 billion. Business improved so much that the firm raised its top-end EPS to $6.33. By 2022, AbbVie’s dividend will rise by 8.5%. At $5.64 a share, income investors should consider investing in this company.
AbbVie’s Humira will face patent expiration pressure, offset by strong Rinvoq and Skyrizi sales. Fortunately, its cash flow will support continued dividend raises.
Gilead (NASDAQ:GILD) fell after posting strong Q3 earnings. EPS was $0.87 as revenue rose by 13% Y/Y to $7.4 billion. Investors worried that weak total product sales would slow its growth. For 2021, Gilead expects product sales in the range of $26 - $26.3 billion. GILD remains an out-of-favor stock. Wait for the selling pressure to end before considering this value pick.
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