3 Large Drug Stocks to Watch as the Industry Shows Some Recovery
View original at finance.yahoo.com3 Large Drug Stocks to Watch as the Industry Shows Some Recovery The drug and biotech sector has recovered in the past couple of months after remaining muted for most of this year…
What we drew from this source
The claims Via News extracted from this document. We point to the source; we don't replace it.
Eli Lilly plans to file regulatory applications for orforglipron in obesity later in 2025, setting up a potential launch in 2026.
80% confidenceThe Large Cap Pharma industry has risen 15.6% year to date, outpacing the Zacks Medical Sector's 6.3% but underperforming the S&P 500's 18.5%.
80% confidenceJ&J's 2026 EPS consensus estimate rose from $11.38 to $11.48 per share over the past 60 days.
80% confidenceSanofi's 2026 EPS consensus estimate declined from $4.96 to $4.89 per share over the past 60 days.
80% confidenceAn oral pill like orforglipron has the potential to be a more convenient alternative to popular injectable treatments like Zepbound and Wegovy.
80% confidenceEli Lilly's 2026 earnings estimates improved from $30.84 to $33.36 per share in the past 60 days.
80% confidenceJ&J's Innovative Medicine segment sales rose 3.4% in the first nine months of 2025 on an organic basis despite Stelara LOE.
80% confidenceMounjaro and Zepbound are expected to continue to see strong demand in 2026.
80% confidenceOver the last five years, the Large Cap Pharma industry has traded at a high of 20.80X P/E, a low of 13.09X, and a median of 15.99X.
80% confidenceEli Lilly, Johnson & Johnson and Sanofi are worth retaining in one's portfolio among large drugmakers.
80% confidenceEli Lilly has a Zacks Rank #3 (Hold).
80% confidenceThe Zacks Large Cap Pharmaceuticals industry currently carries a Zacks Industry Rank #185, placing it in the bottom 24% of 243 Zacks industries.
80% confidenceJ&J looks quite confident that it will be able to navigate headwinds including weak MedTech sales in China, the Stelara patent cliff, Part D redesign impact, and talc lawsuits.
80% confidenceThe Large Cap Pharma industry trades at a forward 12-month P/E of 16.91X, below the S&P 500's 23.44X and the Zacks Medical Sector's 20.99X.
80% confidenceJohnson & Johnson has a Zacks Rank #3.
80% confidenceSanofi's Vaccines unit has delivered mid-to-high-single-digit sales growth since 2018.
80% confidenceM&A activity has shot up in pharma after remaining muted in the first half of 2025.
80% confidenceThe drug and biotech sector has recovered in the past couple of months after remaining muted for most of this year.
80% confidenceThe top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
80% confidenceSanofi has a Zacks Rank #3.
80% confidence