The pharmaceutical industry is made of companies that research, develop, make, and sell drugs and treatments used to treat or eradicate diseases, and vaccinate people. This includes some of the largest and best-known companies in the world, such as Pfizer Inc. (PFE), Merck & Co. Inc. (MRK), and AbbVie Inc. (ABBV). A number of pharmaceutical companies, including Pfizer, have seen a surge in their sales after winning approval from U.S. and foreign governments for vaccines aimed at preventing the COVID-19 virus.
Over the last 12 months, pharmaceutical stocks, based on the iShares U.S. Pharmaceuticals ETF (IHE), have lagged the performance of the overall market. IHE’s total return over the period was 9.1% compared to the Russell 1000’s total return of 24.4%. These market performance figures and all statistics in the tables below are as of Jan. 6, 2022.
Here are the top 3 pharmaceutical stocks with the best value, the fastest growth, and the most momentum.
These are the pharmaceutical stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.
Best Value Pharmaceutical Stocks
Price ($)
Market Cap ($B)
12-Month Trailing P/E Ratio
Ironwood Pharmaceuticals Inc. (IRWD)
11.65
1.9
3.6
Organon & Co. (OGN)
31.51
8.0
5.3
Collegium Pharmaceutical Inc. (COLL)
19.13
0.7
7.3
Source: YCharts
Ironwood Pharmaceuticals Inc.: Ironwood Pharmaceuticals develops and manufactures drugs used to treat gastrointestinal and cardiovascular diseases. On Dec. 6, Sravan K. Emany was appointed senior vice president and chief financial officer of Ironwood. Emany is responsible for financial planning and reporting, tax, accounting, and investor relations for the company. Emany was previously corporate vice president, commercial excellence and chief strategy officer of Integra LifeSciences Holdings Corp. (IART).
Organon & Co.: Organon is a global women’s healthcare company…..
