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…
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J&J's Innovative Medicine segment sales rose 3.4% in the first nine months of 2025 on an organic basis despite Stelara LOE.
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% confidenceMounjaro and Zepbound are expected to continue to see strong demand in 2026.
80% confidenceM&A activity has shot up in pharma after remaining muted in the first half of 2025.
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% confidenceThe top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
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% confidenceEli Lilly plans to file regulatory applications for orforglipron in obesity later in 2025, setting up a potential launch in 2026.
80% confidenceSanofi's Vaccines unit has delivered mid-to-high-single-digit sales growth since 2018.
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% 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% confidenceSanofi has a Zacks Rank #3.
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% 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% confidenceThe drug and biotech sector has recovered in the past couple of months after remaining muted for most of this year.
80% confidenceJohnson & Johnson has a Zacks Rank #3.
80% confidence