2 Top Pharma Stocks to Buy Right Now
Most of us don't choose when to be sick, what illness will befall us, or what medicine we will take to recover. Thankfully, the pharmaceutical industry -- which is responsible for developing life-saving drugs -- never sleeps. While this sector has not escaped the COVID-19-induced economic crisis unscathed, one thing is for certain: The need for innovative therapies won't subside anytime soon. This alone makes it worthwhile for long-term investors to consider pharma stocks.
Two that I think are worth buying right now are Bristol Myers Squibb (NYSE: BMY) and Alexion Pharmaceuticals (NASDAQ: ALXN). Both drugmakers are trading at attractive valuations: Bristol Myers' forward price-to-earnings (P/E) ratio is 8, while its price-to-earnings growth (PEG) is 0.81. Alexion's P/E and PEG are 10 and 0.79, respectively. The average forward P/E ratio for the S&P 500 is currently about 24, while a PEG ratio below 1 is generally considered good.
Attractive valuation metrics are neat, but to make a case that these stocks are worth buying, let's take a closer look at their respective businesses.
Source Fool.com
