© Reuters. The 2 Best Pharma Stocks to Buy on Dips
The aging population in much of the world, including the United States, is driving increased demand for healthcare solutions. And continuing innovations therein is why we believe that it could be wise to scoop up shares of well-positioned pharma companies Johnson & Johnson (JNJ) and Pfizer (PFE) on every dip. Read on.Because the COVID-19 pandemic is under control in most major economies, the hype surrounding vaccine producers is gradually tapering off. However, because the population of much of the world, including the United States, is aging, the demand for pharmaceutical products is on the rise. An increasing patient pool with various chronic diseases, and continued treatment innovations for critical diseases, should keep driving the industry’s growth this year and beyond. According to a report by Research and Markets, the global pharmaceuticals market is expected to grow at an 8% CAGR from 2021 – 2025.
Investors’ interest in the pharmaceutical space is evident in the SPDR S&P Pharmaceuticals ETF’s (XPH) 4.6% returns over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 1.3% gains over this period.
With these factors in mind, we think it could be wise to bet on the shares of established pharmaceutical companies Johnson & Johnson (JNJ) and Pfizer Inc. (NYSE:). They have significant market dominance and are innovating at a rapid pace. But while these stocks are still trading at high prices, one should seek to buy them on every dip.
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