S&P 500   3,852.36
DOW   32,920.46
QQQ   306.18
Europe bans Russian diesel, other oil products over Ukraine
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Route to Super Bowl dangerous for Mexico's avocado haulers
Biden's State of the Union to tout policy wins on economy
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
How will EU ban and West's price cap on Russian diesel work?
Evacuations urged in Ohio town as train wreck smolders
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
'Knock at the Cabin' knocks off 'Avatar' at the box office
S&P 500   3,852.36
DOW   32,920.46
QQQ   306.18
Europe bans Russian diesel, other oil products over Ukraine
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Route to Super Bowl dangerous for Mexico's avocado haulers
Biden's State of the Union to tout policy wins on economy
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
How will EU ban and West's price cap on Russian diesel work?
Evacuations urged in Ohio town as train wreck smolders
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
'Knock at the Cabin' knocks off 'Avatar' at the box office
S&P 500   3,852.36
DOW   32,920.46
QQQ   306.18
Europe bans Russian diesel, other oil products over Ukraine
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Route to Super Bowl dangerous for Mexico's avocado haulers
Biden's State of the Union to tout policy wins on economy
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
How will EU ban and West's price cap on Russian diesel work?
Evacuations urged in Ohio town as train wreck smolders
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
'Knock at the Cabin' knocks off 'Avatar' at the box office
S&P 500   3,852.36
DOW   32,920.46
QQQ   306.18
Europe bans Russian diesel, other oil products over Ukraine
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Route to Super Bowl dangerous for Mexico's avocado haulers
Biden's State of the Union to tout policy wins on economy
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
How will EU ban and West's price cap on Russian diesel work?
Evacuations urged in Ohio town as train wreck smolders
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
'Knock at the Cabin' knocks off 'Avatar' at the box office

Can Pfizer, Johnson & Johnson Continue Outperforming the Index?

Key Points

  • Pfizer shares rose following good news about Zantac lawsuit dismissals and fast-tracked FDA review of a respiratory virus vaccine, outperforming the broader market in recent months.
  • Fellow S&P component Johnson & Johnson will has also outpaced its index. 
  • The company recently announced plans to acquire Abiomed in the growing market of cardiovascular devices. 

     

  • 5 stocks we like better than Pfizer

Can Pfizer, Johnson & Johnson Continue Outperforming the Index?Large-cap pharmaceuticals Pfizer Inc. (NYSE: PFE) and Johnson & Johnson (NYSE: JNJ) are among stocks outperforming the broader market in the past year, particularly in the past three months. Both stocks are S&P 500 components, so a comparison with that index offers an appropriate benchmark for pharmaceutical stocks. 

While the pharma industry has languished, these companies offer examples of company-specific news that can boost prices even amid wider malaise.

Pfizer is up 6.69% in the past month and 9.78% in the past three months. Shares closed Wednesday at $50.24, a gain of $0.53 or 1.07%. That’s compared to the S&P’s return of 3.34% in the past month and decline of 1.15% over the past three months. 

On Wednesday, a U.S. district judge dismissed tens of thousands of claims that Pfizer, along with GSK PLC (NYSE: GLC) and Sanofi SA (NASDAQ: SNY), pertaining to heartburn treatment Zantac, caused cancer. The judge ruled that the claims failed to show legitimate links between Zantac and several types of cancer, including bladder, gastrointestinal, esophageal, pancreatic and liver cancers. 

There are still more cases pending around the country, but Wednesday’s ruling means remaining litigation will occur in various state courts; the number of cases has dropped significantly. 

Pfizer had more good news Wednesday. According to the company, the U.S. Food & Drug Administration accepted for priority review a Biologics License Application (BLA) for a respiratory syncytial virus (RSV) vaccine candidate submitted by Pfizer. The treatment should prevent respiratory tract disease caused by that particular virus in people ages 60 and older.

Priority review designation by the FDA cuts the standard BLA review time period by four months. 

In a statement issued by Pfizer, Annaliesa Anderson, senior vice president and chief scientific officer of vaccine research and development, said, "With no RSV vaccines currently available, older adults remain at risk for RSV disease and potential severe outcomes, including serious respiratory symptoms, hospitalization, and in some cases, even death.”

She noted that the FDA’s acceptance of the BLA for the company’s vaccine candidate is an important regulatory milestone. 

Pfizer has consolidated for the past year after peaking at $61.70 in December 2021.
Can S&P Components Pfizer, J&J Continue Outperforming The Index?

Johnson & Johnson also Outpaces Broader Market 

Johnson & Johnson, in addition to its pharmaceutical business, also diversifies into various health care pursuits. 


That stock is up 3.08% in the past month, 8.67% in the past three months and 6.17% year-to-date. Shares closed $0.61 higher Wednesday, at $177.17. 

Johnson & Johnson has had some recent news that helped boost the stock price. Last month, the company said it would acquire cardiovascular device maker Abiomed Inc. (NASDAQ: ABMD) for nearly $17 billion. The deal will likely accelerate J&J’s presence in a growing area, but J&J’s existing growth in the device space has lagged behind other areas. 

The device area has attracted investor interest now, with Ra Medical Systems Inc. (NYSE: RMED) rising an almost astonishing 97.55% in the past week and 43.20% in the past month. 

In September, privately held Catheter Precision announced a definitive merger agreement with Ra, which makes lasers for use in the treatment of vascular and dermatological ailments. If completed, the deal would result in a combined publicly traded company focusing on cardiac electrophysiology, or the diagnosis and treatment of conditions affecting the electrical activity of the heart muscle.
Can S&P Components Pfizer, J&J Continue Outperforming The Index?

Lower Price Targets

Despite recent stock price increases, analysts are somewhat mixed when it comes to the near-to-medium-term outlook for J&J. Since the company’s last earnings report in mid-October, five analysts lowered their price targets on the company. 

MarketBeat data show the consensus rating is “hold,” with a price target of $181.83, a potential upside of 2.74%. That’s down from a price target of $184.25 a month ago. 

Johnson & Johnson’s chart reveals a cup-shaped pattern that began forming in late April. Currently, a possible buy point is above $188.69. So far, the correction has declined 15% and hasn’t undercut prior structure lows. 

Since the 2020 COVID-19-driven market meltdown, J&J has formed a series of bases with higher highs as well as higher lows. Each time, it has failed to rally more than 20% before pulling back again.  

Should you invest $1,000 in Pfizer right now?

Before you consider Pfizer, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Pfizer wasn't on the list.

While Pfizer currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Beginners Guide To Retirement Stocks

Click the link below and we'll send you MarketBeat's list of seven best retirement stocks and why they should be in your portfolio.

Get This Free Report
Beginners Guide To Retirement Stocks Cover

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Pfizer (PFE)
3.4676 of 5 stars
$44.06-0.6%3.72%8.04Hold$52.13
Johnson & Johnson (JNJ)
3.2462 of 5 stars
$164.61-0.6%2.75%24.42Hold$185.23
GSK (GSK)
2.4048 of 5 stars
$34.83-0.9%3.76%4.06HoldN/A
Ra Medical Systems (RMED)
0 of 5 stars
$3.04+2.0%N/A-0.03BuyN/A
Abiomed (ABMD)
1.8577 of 5 stars
$381.02flatN/A65.47Hold$350.50
Compare These Stocks  Add These Stocks to My Watchlist 

Kate Stalter

About Kate Stalter

Contributing Author: Retirement, Asset Allocation, and Tax Strategies

Kate Stalter is a Series 65-licensed asset manager, with more than two decades of experience in various areas of financial services. As an investment advisor and financial planner, Kate personally manages client portfolios, with a focus on successful retirement, including asset allocation, income generation and tax strategies. Kate also serves as a capital-markets contributor at Forbes.com, and is an expert columnist for the investment advisory channel at U.S. News & World Report.
Contact Kate Stalter via email at stalterkate@gmail.com.

Featured Articles and Offers

Search Headlines: