2 Top Value Stocks to Own in 2021
Despite a pandemic and a worldwide economic recession, U.S. stocks turned in a banner year in 2020. The iShares Nasdaq Biotechnology ETF, for instance, gained 25% last year thanks to a suite of hurricane-force tailwinds. For example, the U.S. Food and Drug Administration approved an astounding 53 novel drugs last year; an unusually large amount of money flowed into pharmaceutical research; and scores of high-dollar business development deals were consummated across the industry. Unfortunately, several of these key tailwinds are unlikely to roll over into 2021.
This year, therefore, biopharma investors may want to scale back on speculative growth stocks in the industry, and instead focus on value-oriented plays. Companies with attractive price-to-earnings ratios, strong free cash flows, and healthy dividends are wise bets in uncertain times, after all.
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Source Fool.com
