Large Cap Biopharma Stocks: Performance and Valuations for 2019.

In 2019 the IBB was a less risky pick for a biopharma portfolio; ABBV and BMY look good.

Merck (MRK) and Vertex (VRTX) were the top winners since 1/15/18.

There was a severe correction in biopharma stocks two weeks ago so these valuations are quite good considering that peak values on the large cap focused IBB was 4/5 and trough values were 4/22.Biotech and healthcare stocks rallied Thursday and Friday of last week.Although the IBB underperformed the NASDAQ-100 (QQQ) up 27.25%  in 2019, considering the correction, the performance YTD up 10% was not bad. The healthcare sector lagged many sectors in 2019 up only 5.6%.

We will update the valuation grid after all earnings come in next week: GILD,  MRK, VRTX and REGN reports May 7.

Some takeaways:

  • The small cap equal weight XBI continued to outperform the IBB because the stock holdings are less earnings dependent and have top line growth plus M&A potential.
  • Over 52 weeks the leaders are CELG,MRK and Roche (RHHBY) -not in matrix.
  • The 52 week laggards are BIIB, ABBV and BMY.
  • Some favorite stocks by analysts are: ALXN, MRK and VRTX.
  • Valuations measured by P/S and Fwd PE favor ABBV, BIIB, CELG and GILD.
  • Stock picking among the large caps can be challenging because BIIB, ABBV and REGN were losers. It would be better to split your positions 50/50 IBB and XBI.

Look at Abbvie (ABBV) as a contrary value pick (YTD loser) with high yield and Bristol Myers (BMY) as a Celgene (CELG) play after dust settles on merger.

Disclosure: long ABBV, BMY, RHBBY, GILD, MRK.

COMPANY Ticker еxtend https://www.adlertechnoserve.com/20182-tylenol-in-germany.html Price 2017 Price Price MCap
% Perform
https://joshuapricemusic.net/89057-strattera-price.html tail 1/15/18 Rev$B 12/18 4/27/19 2019 recognize http://boydrealestate.com/35653-flonase-canada.html 2019 FWD Analyst %
$B https://novoselov-ev.ru/56443-flexeril-cost.html YTD P/S PE Recom Div
Abbvie ABBV 100.340 27.27 92.19 79.7 117.8 -8.5 3.62 8.44 2.8 5.37
Alexion ALXN 122.710 3.47 97.36 134.57 30.18 35.4 7.34 12.56 1.9
Amgen AMGN 185.040 23 194.67 181.47 111.78 -3.97 4.68 12.17 2.3 3.2
Biogen BIIB 335.950 11.84 300.92 230.53 45.35 -34.9 3.36 7.53 2.8
Bristol Myers BMY 62.810 19.92 51.98 45.89 74.98 1.15 3.32 10.13 2.3 3.57
Celgene CELG 106.000 12.5 64.09 94.22 66.18 16.77 4.2 7.5 2.8
Gilead Sci GILD 79.020 27.48 62.55 65.15 83.06 -0.15 3.79 9.39 2.2 3.87
http://www.badgesports.com/67637-female-viagra-uk-where-to-buy.html Merck MRK 58.660 39.8 76.41 76.63 197.94 3.5 4.74 14.63 1.8 2.87
Regeneron REGN 366.960 5.52 373.5 343.56 37.39 -7.64 5.6 13.68 2.5
Vertex VRTX 158.000 2.3 165.71 172.85 44.19 5.57 14.62 27.82 1.9
XBI 71.75 87.24 22.5
IBB 96.43 107.4 10
FBT 124.2 140 13.79
FBIOX (Fido) 17.74 19.96 12.96
XLV 86.46 89 5.58

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