The performance of most pharmaceutical stocks has been underwhelming over the past year. The benchmark
iShares US Pharmaceuticals ETF (NYSEMKT:IHE) has underperformed the
S&P 500 by almost 20% in this time, and some companies in particular look especially cheap. Their share prices have not kept pace with the broader bull market, and that presents a bargain opportunity for investors.
Two big-name pharmaceuticals that have been making news a lot lately, much of that related to the COVID-19 pandemic, are
Gilead (NASDAQ:GILD) (Pfizer with a vaccine in partnership with
BioNTech, Gilead with a treatment called remdesivir). But while both have made COVID-related headlines, neither has seen a COVID-related boost both stocks are at a price-to-earnings ratio of less than 15, which is cheap from a valuation perspective in comparison to many peers. (
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