When the S&P 500 traded at new highs, Pfizer (PFE) found itself on the 52-week low list almost every day. That changed when the stock bounced from the $25.76 low on Dec. 14-15. The drug company hiked its dividend, reversing the negative sentiment.
On Dec. 15, Pfizer increased its dividend by 2.4% to $0.42, payable to investors of record on Jan. 26, 2024. The stock offers the safest dividend among the drug firms. In addition, the stock is dirt cheap. Its P/E GAAP is ~ 15.4 times, compared to the 33.2 times sector median, a -53% difference.
Bristol-Myers (BMY) is another inexpensive stock. Shares potentially bottomed at below $50. On Dec. 22, the firm announced it would buy Karuna Therapeutics (KRTX) for $14 billion. Karuna has an experimental schizophrenia drug KarXT. It will cost $0.30 per diluted share in 2024.
In the long term, the antipsychotic market will have a total addressable market of $24.35 by 2030, according to Fortune Business Insights. Investors liked the deal. BMY stock continued its uptrend last week by gaining 2.75% and nearly 6% in the last month.
Your Takeaway
Add PFE and BMY stock to your drug manufacturing investment list. They are beat-up healthcare stocks that trade in deep-value territory.
