3 Top Pharmaceutical Stocks to Buy in October 2024

The pharmaceutical industry plays a crucial role in most of our daily lives. From lifesaving medicines we need when we need them, to everyday medicines for pain relief or allergies, big pharmaceutical companies have played a big role in providing the medicines we need to stay happy and healthy every day .

Most investor attention in this sector has either been negative (related to higher US prices) or has been on innovative treatments for various degenerative diseases such as Alzheimer’s, diabetes treatments, weight loss drugs and various treatments for cancer. Many of these lines of business are certainly very profitable and have great implicit and explicit value to their patients and can be charged accordingly.

Thus, there is a lot of money to be made for companies that are able to build sustainable drug pipelines and continue to benefit from the patents and other protections that the sector enjoys. Experts suggest that the entire pharmaceutical sector could see estimated revenues have reached $1.6 trillion by 2028I mean, that’s a big pie to try to bite into.

For those looking for the best bets this sector has to offer, here are three of my top picks right now.

Key points about this article:

• Big pharma may get a bad rap in the news, but they continue to produce predictable and growing profits over time.
• Here are three of the biggest and best ways to play this sector’s long-term growth potential in the coming years.
• If you’re looking for action with huge potential, be sure to grab our free copy brand new “Next NVIDIA” report.. It has a software stock where we are sure it has 10x potential.

Eli Lilly (LLY)

An Eli Lilly sign outside the company’s corporate offices

Eli Lilly (NYSE:LLY) is a leading pharmaceutical giant that is absolutely on the rise this year. The company’s stock price has grew up up about 60% this year, and even more impressively, the stock has skyrocketed more than 730% over the past five years. These are the kinds of returns investors might expect to see from a fast-growing startup, not a company with a market cap approaching $800 billion.

Eli Lilly’s journey to investor fame has had a lot to do with it it comes from its popular drug, tirzepatide, which treats diabetes under the name Mounjaro and was recently approved for weight loss as Zepbound.

According to analysts, the drug is expected to see peak sales of around $50 billion, with expectations that additional indications will be added over time. I have seen the impact on others and can vouch that this drug is revolutionary in nature. But with such a breakthrough drug, there is bound to be competition from others, which Eli Lilly is already seeing.

That said, given the current shortage and expectations of higher prices for insurance companies, this is a drug that could certainly have a lot of pricing power in the market. The company continued attract development investors with impressive sales, reporting $11.3 billion for the quarter ended June 30. That was up 36% year-over-year and up 31% year-to-date.

I think this momentum can continue over the long term given Eli Lilly’s strong drug pipeline. This is a long term winner, I think it deserves a full rating right now.

AbbVie (ABBV)

An AbbVie office building

On July 25, the pharmaceutical giant AbbVie (NYSE:ABBV) was among the top players that high their profit forecast for 2024, following the company’s strong results immunology drug sales. AbbVie reported quarterly results that beat Wall Street expectations, propelling its stock to a record high. As part of his report, the drug giant raised its earnings estimate by 10 cents, projecting between $10.71 and $10.91 per share for this fiscal year.

Those results were certainly impressive, but I don’t think enough attention was paid to the company’s overall dividend profile. AbbVie stock currently yields 3.2% and is among the dividend-paying pharma giants, I think it’s worth owning for the long term. This is partly because this drug giant has grown grew up payment of dividends up 270% over the past decade, far outpacing most of its peers. Thus, those looking for an income-generating investment in this highly profitable space can certainly bet on this stock for excellent total returns.

AbbVie continues to reinvest its profits effectively, launching Skyrizi for psoriasis and Rinvoq for arthritis in 2019, which together generated $7.3 billion in sales during the same period. Long term, this is a top pharma stock, I think it’s worth owning here.

Merck (MRK)

A Merck office building

Merck (NYSE:MRK) is another major US pharmaceutical company focused on providing a range of vaccines and cancer care drugs. In particular, the company has 52 drugs are in operation as of last year, and the number is growing. Additionally, Merck’s top cancer drug generated $26.3 billion in sales last year. This represented 16% year-on-year growth and positions the company well in this core segment.

In addition, the company continues to enhance its portfolio by acquiring early-stage drugs and turning them into blockbusters. the acquisition by Merck of EyeBio to develop retinal treatments are among the key deals worth noting, as well as the company’s expansion of its animal health segment through the acquisition of Elanco’s aquatic business, strengthening its leadership in these markets.

The company has also strengthened its industry leadership with an investment of USD 30.5 billion in research and development in 2023. Its extensive infrastructure enables the cost-effective production of drugs and vaccines, increasing its competitive advantage. Analysts remain bullish, with a 12-month average price target of $140, suggesting a 20% upside from here.

I think this top pharma stock will be a long-term winner, but that’s not just my view. Wall Street seems to be on board this train. I like this.

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