3 Medical Company Stocks Analysts Think Will Soar

In this fast-changing economy, healthcare keeps showing its strength and ability to grow. This means investors might want to add some solid healthcare stocks to their portfolios. Stocks like Pfizer Inc. (PFE), Biogen Inc. (BIIB), and BioMarin Pharmaceutical Inc. (BMRN) have high price targets from analysts.

More people need healthcare services and products these days. This is because the world’s population is getting older, healthcare costs more, and medical technology keeps making big steps forward. These trends will continue. Experts think the global healthcare services market will be worth $22.57 trillion by 2031. They expect it to grow at a rate of 8.3% each year.
Healthcare is a non-cyclical industry, which means that no matter how the economy performs, the healthcare sector will remain crucial in today’s world. What’s more recent breakthroughs in the medical field such as gene editing and biotechnology, are opening up new avenues for growth for investors. Experts predict that revenue in the global biotech industry will grow at a CAGR of 14% to reach $3.88 trillion by 2030.

With these points in mind, let’s examine the fundamentals of the three healthcare stock picks.

Pfizer Inc. (PFE)

PFE leads the world in biopharmaceuticals. It offers many medicines and vaccines for different health problems. Its products treat heart issues, metabolism problems, headaches, women’s health concerns, and infections like COVID-19. PFE also works on new mRNA and antiviral treatments. The company makes similar versions of drugs for long-term immune and inflammatory conditions.

On August 27, PFE started PfizerForAll. This new online tool aims to help people in the U.S. get healthcare and manage their health more . People can use it to talk to doctors on the same day, schedule vaccines, and get tests and medicines at home.

In the same month, PFE and BioNTech SE (BNTX) got the green light from the U.S. Food and Drug Administration (FDA) to update their Biologics License Application. This covers people 12 years and older. The FDA also allowed emergency use for kids from six months to 11 years old. This applies to the companies’ Omicron KP.2-adapted 2024-2025 Formula COVID-19 vaccine. The company plans to start shipping right away to make sure there’s enough supply and quick access.

PFE saw its total revenues grow 2.1% compared to last year reaching $13.28 billion in the second quarter (ended June 30, 2024). Its non-GAAP other income hit $258 million, a stark contrast to the $278 million loss in the same quarter last year. The company reported an adjusted net income of $3.40 billion and an adjusted EPS attributable of $0.60.

The company has revised its financial guidance for fiscal year 2024 boosting its revenue forecast to between $59.50 billion and $62.50 billion up from the earlier prediction of $58.50 billion to $61.50 billion. On top of that, it has increased its adjusted EPS outlook to a new range of $2.45 to $2.65 surpassing the previous estimate of $2.15 to $2.35.

Experts predict PFE’s revenue for the fourth quarter (ending December 2024) to rise 26.3% year-over-year to $18 billion, while its EPS for the same period is expected to show a significant increase from the previous year to $0.67.

PFE stock has climbed 5.8% in the last three months ending the most recent trading day at $29.27. Analysts predict a 12% potential increase from this closing price, with a 12-month median target of $32.77. The range of price targets spans from $27 on the low end to $45 at the high end.

PFE’s POWR Ratings show this strong outlook. The stock has an overall rating of B, which means Buy in our own rating system. The POWR Ratings take into account 118 different factors, with each factor given the right weight.

PFE has a B grade to grow and for its value. It ranks #47 out of 161 stocks in the Medical – Pharmaceuticals industry.

Biogen Inc. (BIIB)

BIIB is a worldwide biopharmaceutical firm that aims to find, create, and provide cutting-edge treatments for individuals with severe and complex illnesses across the globe. The company offers a range of medicines to treat multiple sclerosis (MS) spinal muscular atrophy (SMA), Alzheimer’s disease, and amyotrophic lateral sclerosis (ALS).

On August 22, BIIB and Eisai Co., Ltd. shared news that the Medicines and Healthcare products Regulatory Agency (MHRA) in Great Britain gave the green light to market their Leqembi®, a human-made antibody that targets amyloid-beta (Aβ) proteins.

On July 30 BIIB, Beckman Coulter Inc., and Fujirebio said they would work together to find and create easy-to-use non-invasive blood tests to spot tau-related brain changes. These tools could help sort patients or track how well new treatments work in tackling tau problems in Alzheimer’s disease. The goal is to develop a new wave of therapies that have an impact on tau buildup in the brain.

For the second quarter of 2024, which ended on June 30, BIIB saw a slight rise in total revenues year-over-year to $2.46 billion. Its non-GAAP total net income for the quarter reached $770.90 million or $5.28 per share showing increases of 31.9% and 31.3% , compared to the same period last year.

BIIB has updated its financial guidance for the full year 2024. The company now expects non-GAAP EPS to range between $15.75 and $16.25 higher than the earlier estimate of $15 to $16.

Wall Street thinks BIIB will see its revenue go up by 2.4% compared to last year reaching $2.44 billion in the fourth quarter of fiscal year 2024 (which ends in December). The company’s earnings per share for this period are predicted to grow by 14.9% from the year before coming in at $3.39. What’s more, BIIB beat EPS estimates in three out of the last four quarters, which looks good for the company.

BIIB’s stock has dropped 1.1% during the day to end the last trading session at $195.63. Its 12-month price target of $275.11 shows a potential 40.6% increase. The price targets go from a low of $190 to a high of $342.

BIIB’s good outlook appears in its POWR Ratings. The stock has an overall A rating, which means a Strong Buy in our own rating system.

It also scores an A for Value and a B for Growth and Sentiment. In the Biotech industry, it ranks #7 out of 336 stocks.

BioMarin Pharmaceutical Inc. (BMRN)

BMRN creates and sells treatments for people with rare and dangerous diseases. The company works in biotechnology to tackle the source of genetic conditions.

On July 24, BMRN said the U.S. FDA gave the green light to BRINEURA (cerliponase alfa) for kids under three with neuronal ceroid lipofuscinosis type 2 (CLN2 disease). This approval now covers all ages, including children without symptoms, to help slow down the loss of walking ability.

In the fiscal third quarter that ended on June 29, 2024, BMRN’s total revenue grew 19.6% year-over-year to $712.03 million. The company showed non-GAAP income from operations of $221.8 million marking a 71.7% increase from the same quarter last year. BMRN’s non-GAAP income reached $250.70 million jumping 79.6% year-over-year, while its non-GAAP EPS rose 77.8% from the previous year’s figure to $0.96.

According to the updated financial guidance for fiscal year 2024, the company’s revenue is now projected to be between $2.75 billion and $2.83 billion, with non-GAAP operating margin anticipated to fall between 26% and 27%. Its non-GAAP EPS is expected to range from $3.10 to $3.25.

The consensus revenue estimate of $704.18 million for the fiscal third quarter (ending September 2024) represents a 21.1% increase year-over-year. The consensus EPS estimate of $0.80 for the same quarter indicates a 74% improvement year-over-year. The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in three of the trailing four quarters.

Over the past three months, the stock has surged marginally to close the last trading session at $84.90. Its 12-month price target of $111.15 reflects a 30.9% potential upside. The price targets range from a low of $72 to a high of $132.

It’s no surprise that BMRN has an overall rating of B, equating to a Buy in our POWR Ratings system. It has an A grade for Growth and a B for Value and Sentiment. Out of 336 stocks in the Biotech industry, BMRN is ranked #15.

PFE shares closed at $29.27 on Friday, up $0.11 (+0.38%). Year-to-date, PFE has gained 7.74%, versus a 18.99% rise in the benchmark S&P 500 index during the same period.